Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 13, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NORTHERN STATES POWER CO /WI/ | |
Entity Central Index Key | 72,909 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 933,000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating revenues | ||
Electric | $ 211,524 | $ 210,284 |
Natural gas | 43,020 | 63,296 |
Other | 306 | 380 |
Total operating revenues | 254,850 | 273,960 |
Operating expenses | ||
Electric fuel and purchased power, non-affiliates | 3,981 | 1,283 |
Purchased power, affiliates | 108,714 | 111,832 |
Cost of natural gas sold and transported | 23,418 | 42,438 |
Operating and maintenance expenses | 48,619 | 42,173 |
Conservation program expenses | 3,066 | 2,855 |
Depreciation and amortization | 24,449 | 21,361 |
Taxes (other than income taxes) | 7,155 | 7,232 |
Loss on Monticello life cycle management/extended power uprate project | 0 | 5,237 |
Total operating expenses | 219,402 | 234,411 |
Operating income | 35,448 | 39,549 |
Other income, net | 449 | 249 |
Allowance for funds used during construction — equity | 810 | 2,219 |
Interest charges and financing costs | ||
Interest charges — includes other financing costs of $462 and $402, respectively | 8,604 | 7,756 |
Allowance for funds used during construction — debt | (347) | (1,070) |
Total interest charges and financing costs | 8,257 | 6,686 |
Income before income taxes | 28,450 | 35,331 |
Income taxes | 10,819 | 13,064 |
Net income | $ 17,631 | $ 22,267 |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest charges and financing costs | ||
Other financing costs | $ 462 | $ 402 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Comprehensive income: | ||
Net income | $ 17,631 | $ 22,267 |
Derivative instruments: | ||
Reclassification of losses to net income, net of tax of $13 and $13, respectively | 19 | 19 |
Other comprehensive income | 19 | 19 |
Comprehensive income | $ 17,650 | $ 22,286 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative instruments: | ||
Reclassification of losses to net income, net of tax | $ 13 | $ 13 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net income | $ 17,631 | $ 22,267 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 24,829 | 21,682 |
Deferred income taxes | 5,284 | 8,241 |
Amortization of Investment Tax Credits | (132) | (132) |
Allowance for equity funds used during construction | (810) | (2,219) |
Loss on Monticello life cycle management/extended power uprate project | 0 | 5,237 |
Net derivative losses | 200 | 554 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,797) | (5,496) |
Accrued unbilled revenues | 7,326 | 10,428 |
Inventories | 6,717 | 9,830 |
Other current assets | 6,348 | 11,335 |
Accounts payable | 2,325 | (11,851) |
Net regulatory assets and liabilities | 1,856 | (1,404) |
Other current liabilities | 3,492 | 1,289 |
Pension and other employee benefit obligations | (7,264) | (4,915) |
Change in other noncurrent assets | (319) | (4) |
Change in other noncurrent liabilities | 798 | 535 |
Net cash provided by operating activities | 65,484 | 65,377 |
Investing activities | ||
Utility capital/construction expenditures | (44,655) | (79,926) |
Allowance for equity funds used during construction | 810 | 2,219 |
Other, net | 292 | (90) |
Net cash used in investing activities | (43,553) | (77,797) |
Financing activities | ||
(Repayments of) proceeds from short-term borrowings, net | (5,000) | 2,000 |
Repayments of long-term debt | (14) | (128) |
Capital contributions (to) from parent | (1,545) | 25,210 |
Dividends paid to parent | (15,322) | (14,957) |
Net cash (used in) provided by financing activities | (21,881) | 12,125 |
Net change in cash and cash equivalents | 50 | (295) |
Cash and cash equivalents at beginning of period | 1,079 | 1,285 |
Cash and cash equivalents at end of period | 1,129 | 990 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (6,305) | (5,791) |
Cash (paid) received for income taxes, net | (2,424) | 625 |
Supplemental disclosure of non-cash investing transactions: | ||
Property, plant and equipment additions in accounts payable | $ 9,586 | $ 14,550 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 1,129 | $ 1,079 |
Accounts receivable, net | 59,175 | 56,378 |
Accrued unbilled revenues | 40,372 | 47,698 |
Inventories | 14,842 | 21,559 |
Regulatory assets | 13,824 | 16,146 |
Prepaid taxes | 19,786 | 25,976 |
Deferred income taxes | 8,900 | 3,138 |
Prepayments and other | 2,226 | 2,387 |
Total current assets | 160,254 | 174,361 |
Property, plant and equipment, net | 1,845,767 | 1,828,079 |
Other assets | ||
Regulatory assets | 291,774 | 289,196 |
Other investments | 3,751 | 4,042 |
Other | 384 | 67 |
Total other assets | 295,909 | 293,305 |
Total assets | 2,301,930 | 2,295,745 |
Current liabilities | ||
Current portion of long-term debt | 1,168 | 1,131 |
Short-term debt | 5,000 | 10,000 |
Notes payable to affiliates | 500 | 500 |
Accounts payable | 25,218 | 34,317 |
Accounts payable to affiliates | 27,275 | 24,538 |
Dividends payable to parent | 12,529 | 15,322 |
Regulatory liabilities | 15,634 | 11,781 |
Environmental liabilities | 17,453 | 17,155 |
Accrued interest | 9,549 | 7,945 |
Other | 16,379 | 15,778 |
Total current liabilities | 130,705 | 138,467 |
Deferred credits and other liabilities | ||
Deferred Tax Liabilities, Net, Noncurrent | 406,150 | 393,569 |
Deferred investment tax credits | 8,428 | 8,560 |
Regulatory liabilities | 144,832 | 141,289 |
Environmental liabilities | 77,026 | 77,441 |
Customer advances | 19,162 | 18,480 |
Pension and employee benefit obligations | 42,453 | 49,889 |
Other | 16,220 | 16,347 |
Total deferred credits and other liabilities | $ 714,271 | $ 705,575 |
Commitments and contingencies | ||
Capitalization | ||
Long-term debt | $ 661,448 | $ 661,318 |
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at March 31, 2016 and Dec. 31, 2015, respectively | 93,300 | 93,300 |
Additional paid in capital | 394,553 | 394,553 |
Retained earnings | 307,843 | 302,741 |
Accumulated other comprehensive loss | (190) | (209) |
Total common stockholder’s equity | 795,506 | 790,385 |
Total liabilities and equity | $ 2,301,930 | $ 2,295,745 |
CONSOLIDATED BALANCE SHEETS (U8
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Capitalization | ||
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 100 | $ 100 |
Common stock, shares outstanding (in shares) | 933,000 | 933,000 |
Management's Opinion
Management's Opinion | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management's Opinion | In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (GAAP), the financial position of NSP-Wisconsin and its subsidiaries as of March 31, 2016 and Dec. 31, 2015 ; the results of its operations, including the components of net income and comprehensive income, for the three months ended March 31, 2016 and 2015; and its cash flows for the three months ended March 31, 2016 and 2015. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2016 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2015 balance sheet information has been derived from the audited 2015 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015 . These notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto, included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015 , filed with the SEC on Feb. 22, 2016. Due to the seasonality of NSP-Wisconsin’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Recently Issued Revenue Recognition — In May 2014, the Financial Accounting Standards Board (FASB) issued Revenue from Contracts with Customers, Topic 606 (Accounting Standards Update (ASU) No. 2014-09) , which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an entity is entitled to receive in exchange for goods and services. The new guidance also includes additional disclosure requirements regarding revenue, cash flows and obligations related to contracts with customers. The guidance is effective for interim and annual reporting periods beginning after Dec. 15, 2017. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements. Presentation of Deferred Taxes — In November 2015, the FASB issued Balance Sheet Classification of Deferred Taxes, Topic 740 (ASU No 2015-17) , which eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet based on the classification of the related asset or liability, and instead requires classification of all deferred tax assets and liabilities as noncurrent. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. Other than the prescribed classification of all deferred tax assets and liabilities as noncurrent, NSP-Wisconsin does not expect the implementation of ASU 2015-17 to have a material impact on its consolidated financial statements. Classification and Measurement of Financial Instruments — In January 2016, the FASB issued Recognition and Measurement of Financial Assets and Financial Liabilities, Subtopic 825-10 (ASU No. 2016-01) , which among other changes in accounting and disclosure requirements, replaces the cost method of accounting for non-marketable equity securities with a model for recognizing impairments and observable price changes, and also eliminates the available-for-sale classification for marketable equity securities. Under the new guidance, other than when the consolidation or equity method of accounting is utilized, changes in the fair value of equity securities are to be recognized in earnings. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2017. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2016-01 on its consolidated financial statements. Leases — In February 2016, the FASB issued Leases, Topic 842 (ASU No. 2016-02) , which, for lessees, requires balance sheet recognition of right-of-use assets and lease liabilities for all leases. Additionally, for leases that qualify as finance leases, the guidance requires expense recognition consisting of amortization of the right-of-use asset as well as interest on the related lease liability using the effective interest method. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2018, and early adoption is permitted. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements. Stock Compensation — In March 2016, the FASB issued Improvements to Employee Share-Based Payment Accounting, Topic 718 (ASU 2016-09), which amends existing guidance to simplify several aspects of accounting and presentation for share-based payment transactions, including the accounting for income taxes and forfeitures, as well as presentation in the statement of cash flows. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements. Recently Adopted Consolidation — In February 2015, the FASB issued Amendments to the Consolidation Analysis, Topic 810 (ASU No. 2015-02) , which reduces the number of consolidation models and amends certain consolidation principles related to variable interest entities. NSP-Wisconsin implemented the guidance on Jan. 1, 2016, and the implementation did not have a significant impact on its consolidated financial statements. Presentation of Debt Issuance Costs — In April 2015, the FASB issued Simplifying the Presentation of Debt Issuance Costs, Subtopic 835-30 (ASU No. 2015-03) , which requires the presentation of debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt, instead of presentation as an asset. NSP-Wisconsin implemented the new guidance as required on Jan. 1, 2016, and as a result, $5.0 million of deferred debt issuance costs are presented as a deduction from the carrying amount of long-term debt on the consolidated balance sheet as of March 31, 2016, and $5.1 million of such deferred costs were retrospectively reclassified from other non-current assets to long-term debt on the consolidated balance sheet as of Dec. 31, 2015. Fair Value Measurement — In May 2015, the FASB issued Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), Topic 820 (ASU No. 2015-07), which eliminates the requirement to categorize fair value measurements using a net asset value (NAV) methodology in the fair value hierarchy. NSP-Wisconsin implemented the guidance on Jan. 1, 2016, and the implementation did not have a material impact on its consolidated financial statements. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 3 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | Selected Balance Sheet Data (Thousands of Dollars) March 31, 2016 Dec. 31, 2015 Accounts receivable, net (a) Accounts receivable $ 64,138 $ 61,506 Less allowance for bad debts (4,963 ) (5,128 ) $ 59,175 $ 56,378 (Thousands of Dollars) March 31, 2016 Dec. 31, 2015 Inventories Materials and supplies $ 6,676 $ 6,785 Fuel 5,881 6,528 Natural gas 2,285 8,246 $ 14,842 $ 21,559 (Thousands of Dollars) March 31, 2016 Dec. 31, 2015 Property, plant and equipment, net Electric plant $ 2,431,503 $ 2,411,562 Natural gas plant 276,568 275,376 Common and other property 134,327 132,329 Construction work in progress 77,148 65,755 Total property, plant and equipment 2,919,546 2,885,022 Less accumulated depreciation (1,073,779 ) (1,056,943 ) $ 1,845,767 $ 1,828,079 (a) Accounts receivable, net includes an immaterial amount due from affiliates as of March 31, 2016 and Dec. 31, 2015, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Except to the extent noted below, Note 6 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015 appropriately represents, in all material respects, the current status of other income tax matters, and are incorporated herein by reference. Federal Audit — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. In the third quarter of 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011 , including the 2009 carryback claim. As of March 31, 2016, the IRS had proposed an adjustment to the federal tax loss carryback claims that would result in $14 million of income tax expense for the 2009 through 2011 and 2013 claims, the recently filed 2014 claim, and the anticipated claim for 2015. NSP-Wisconsin is not expected to accrue any income tax expense related to this adjustment. In the fourth quarter of 2015, the IRS forwarded the issue to the Office of Appeals (Appeals); however, the outcome and timing of a resolution is uncertain. The statute of limitations applicable to Xcel Energy’s 2009 through 2011 federal income tax returns expires in December 2016 following an extension to allow additional time for the Appeals process. In the third quarter of 2015, the IRS commenced an examination of tax years 2012 and 2013 . As of March 31, 2016, the IRS had not proposed any material adjustments to tax years 2012 and 2013. State Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of March 31, 2016, NSP-Wisconsin’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2011 . As of March 31, 2016, there were no state income tax audits in progress. Unrecognized Tax Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual effective tax rate (ETR). In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would accelerate the payment of cash to the taxing authority to an earlier period. A reconciliation of the amount of unrecognized tax benefit is as follows: (Millions of Dollars) March 31, 2016 Dec. 31, 2015 Unrecognized tax benefit — Permanent tax positions $ 0.3 $ 0.2 Unrecognized tax benefit — Temporary tax positions 4.3 4.3 Total unrecognized tax benefit $ 4.6 $ 4.5 The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: (Millions of Dollars) March 31, 2016 Dec. 31, 2015 NOL and tax credit carryforwards $ (1.0 ) $ (0.9 ) It is reasonably possible that NSP-Wisconsin’s amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS Appeals and audit progress and state audits resume. As the IRS Appeals and audit progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $2 million . The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. The payables for interest related to unrecognized tax benefits at March 31, 2016 and Dec. 31, 2015 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of March 31, 2016 or Dec. 31, 2015. |
Rate Matters Rate Matters (Note
Rate Matters Rate Matters (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Public Utilities, General Disclosures [Abstract] | |
Rate Matters | Rate Matters Except to the extent noted below, the circumstances set forth in Note 10 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015, appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference. Pending Regulatory Proceedings — Public Service Commission of Wisconsin (PSCW) Wisconsin 2017 Electric and Gas Rate Case — On April 1, 2016, NSP-Wisconsin filed a request with the PSCW for an increase in annual electric rates of $17.4 million , or 2.4 percent , and an increase in natural gas rates by $4.8 million , or 3.9 percent , effective January 2017. The electric rate request is for the limited purpose of recovering increases in (i) generation and transmission fixed charges and fuel and purchased power expenses related to the interchange agreement with NSP-Minnesota, and (ii) costs associated with forecasted average rate base of $1.188 billion in 2017. The natural gas rate request is for the limited purpose of recovering expenses related to the ongoing environmental remediation of a former manufactured gas plant site and adjacent area in Ashland, Wis. No changes are being requested to the capital structure or the 10.0 percent return on equity (ROE) authorized by the PSCW in the 2016 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, solely for 2017, in which 100 percent of the earnings in excess of the authorized ROE would be refunded to customers. The major components of the requested rate increases are summarized below: Electric Rate Request (Millions of Dollars) Request Rate base investments $ 11.0 Generation and transmission expenses (excluding fuel and purchased power) (a) 6.8 Fuel and purchased power expenses 11.0 Subtotal 28.8 2015 fuel refund (9.5 ) Department of Energy settlement refund (1.9 ) Total electric rate increase $ 17.4 (a) Includes Interchange Agreement billings. The Interchange Agreement is a Federal Energy Regulatory Commission (FERC) tariff under which NSP-Wisconsin and its affiliate, NSP-Minnesota, own and operate a single integrated electric generation and transmission system and both companies pay a pro-rata share of system capital and operating costs. For financial reporting purposes, these expenses are included in operating and maintenance (O&M) expenses. Natural Gas Rate Request (Millions of Dollars) Request Environmental remediation expenses $ 4.8 Total natural gas rate increase $ 4.8 A PSCW decision is anticipated in the fourth quarter of 2016. Recently Concluded Regulatory Proceedings — Minnesota Public Utilities Commission (MPUC) Nuclear Project Prudence Investigation — In 2013, NSP-Minnesota completed the Monticello life cycle management (LCM)/extended power uprate (EPU) project and increased the capacity from 600 to 671 megawatts (MW) in 2015. The Monticello LCM/EPU project expenditures were approximately $665 million . Total capitalized costs were approximately $748 million , which includes allowance for funds used during construction (AFUDC). In 2008, project expenditures were initially estimated at approximately $320 million , excluding AFUDC. In 2013, the MPUC initiated an investigation to determine whether the final costs for the Monticello LCM/EPU project were prudent. In March 2015, the MPUC voted to allow for full recovery, including a return, on approximately $415 million of the total plant costs (inclusive of AFUDC), but only allow recovery of the remaining $333 million of costs with no return on this portion of the investment over the remaining life of the plant. Further, the MPUC determined that only 50 percent of the investment was considered used-and-useful for 2014. As a result of these determinations, Xcel Energy recorded an estimated pre-tax loss of $129 million in the first quarter of 2015, after which the remaining book value of the Monticello project represented the present value of the estimated future cash flows. As NSP-Wisconsin shares in the costs of the Monticello plant through the Interchange Agreement with NSP-Minnesota, the MPUC decision also affects NSP-Wisconsin. NSP-Wisconsin’s portion of the $129 million pre-tax loss, recorded in the first quarter of 2015, was approximately $5 million . Pending Regulatory Proceedings — FERC Midcontinent Independent System Operator, Inc. (MISO) ROE Complaints/ROE Adder — In November 2013, a group of customers filed a complaint at the FERC against MISO transmission owners (TOs), including NSP-Minnesota and NSP-Wisconsin. The complaint argued for a reduction in the ROE in transmission formula rates in the MISO region from 12.38 percent to 9.15 percent , a prohibition on capital structures in excess of 50 percent equity, and the removal of ROE adders (including those for Regional Transmission Organization (RTO) membership and being an independent transmission company), effective Nov. 12, 2013. In June 2014 the FERC adopted a new ROE methodology, which requires electric utilities to use a two -step discounted cash flow analysis that incorporates both short-term and long-term growth projections to estimate the cost of equity. In December 2015, an administrative law judge (ALJ) initial decision recommended the FERC approve a ROE of 10.32 percent . A FERC order is expected to be issued no earlier than late 2016 or 2017. Certain MISO TOs separately requested FERC approval of a 50 basis point ROE adder for RTO membership, which was approved effective Jan. 6, 2015, subject to the outcome of the ROE complaint. Certain intervenors sought rehearing of this order, which the FERC denied in 2015. In February 2015, a second complaint was filed seeking to reduce the MISO region ROE from 12.38 percent to 8.67 percent , prior to any adder. The FERC set the second complaint for hearings, and established a refund effective date of Feb. 12, 2015. The MPUC, the North Dakota Public Service Commission, the South Dakota Public Utilities Commission and the Minnesota Department of Commerce (DOC) joined a joint complainant/intervenor initial brief recommending an ROE of either 8.82 percent or 8.81 percent . FERC staff recommended a ROE of 8.78 percent . The MISO TOs recommended a ROE of 10.92 percent . An ALJ initial decision is expected in June 2016 with a FERC decision expected no earlier than late 2016 or 2017. NSP-Minnesota has recorded a current liability representing the current best estimate of a refund obligation associated with the new ROE, including the RTO membership adder, as of March 31, 2016. The new FERC ROE methodology is estimated to reduce transmission revenue, net of expense, between $8 million and $10 million , annually, for the NSP System. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Except to the extent noted below and in Note 5 above, the circumstances set forth in Notes 10 and 11 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015 , appropriately represent, in all material respects, the current status of commitments and contingent liabilities, and are incorporated herein by reference. The following include commitments, contingencies and unresolved contingencies that are material to NSP-Wisconsin’s financial position. Guarantees NSP-Wisconsin provides a guarantee for payment of customer loans related to NSP-Wisconsin’s farm rewiring program. NSP-Wisconsin’s exposure under the guarantee is based upon the net liability under the agreement. The guarantee issued by NSP-Wisconsin limits its exposure to a maximum amount stated in the guarantee. The guarantee contains no recourse provisions and requires no collateral. The following table presents the guarantee issued and outstanding for NSP-Wisconsin: (Millions of Dollars) March 31, 2016 Dec. 31, 2015 Guarantee issued and outstanding $ 1.0 $ 1.0 Current exposure under this guarantee 0.1 0.1 Environmental Contingency Ashland Manufactured Gas Plant (MGP) Site — NSP-Wisconsin has been named a potentially responsible party (PRP) for contamination at a site in Ashland, Wis. The Ashland/Northern States Power Lakefront Superfund Site (the Site) includes property owned by NSP-Wisconsin, previously operated as a MGP facility (the Upper Bluff), and two other properties: an adjacent city lakeshore park area (Kreher Park); and an area of Lake Superior’s Chequamegon Bay adjoining the park (the Sediments). In 2010, the United States Environmental Protection Agency (EPA) issued its Record of Decision (ROD), including their preferred remedy for the Sediments which is a hybrid remedy involving both dry excavation and wet conventional dredging methodologies (the Hybrid Remedy). A wet conventional dredging only remedy (the Wet Dredge), contingent upon the completion of a successful Wet Dredge pilot study, is another potential remedy. In 2012, under a settlement agreement, NSP-Wisconsin agreed to perform the remediation of the Phase I Project Area (which includes the Upper Bluff and Kreher Park areas of the Site). The excavation and containment remedies are complete, and a long-term groundwater pump and treatment program is now underway. The final design was approved by the EPA in 2015. The current cost estimate for the cleanup of the Phase I Project Area is approximately $68.1 million , of which approximately $50.5 million has already been spent. Negotiations are ongoing between the EPA and NSP-Wisconsin regarding who will pay for or perform the cleanup of the Sediments and which remedy will be implemented. The EPA’s ROD 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 or 30 percent lower. NSP-Wisconsin believes the Hybrid Remedy is not safe or feasible to implement. In 2015, NSP-Wisconsin constructed a breakwater at the site to serve as wave attenuation and containment for a wet dredge pilot study and full scale sediment remedy at the site. Equipment mobilization for the wet dredge pilot study commenced in April 2016. Three other PRPs have contributed $15.9 million to the remediation of the site, as a result of litigation and settlements approved by the U.S. District Court for the Western District of Wisconsin in 2015. NSP-Wisconsin’s litigation effort against other PRPs is now complete. At March 31, 2016 and Dec. 31, 2015, NSP-Wisconsin had recorded a liability of $94.2 million and $94.4 million , respectively, for the Site based upon potential remediation and design costs together with estimated outside legal and consultant costs; of which $17.2 million and $17.0 million , respectively, were considered a current liability. NSP-Wisconsin’s potential liability, the actual cost of remediation and the timing of expenditures are subject to change. NSP-Wisconsin also continues to work to identify and access state and federal funds to apply to the remediation cost of the entire site. NSP-Wisconsin has deferred the estimated site remediation costs as a regulatory asset. The PSCW has consistently authorized NSP-Wisconsin rate recovery for all remediation costs incurred at the Site. In a December 2012 decision, the PSCW agreed to allow NSP-Wisconsin to pre-collect certain costs, to amortize costs over a ten -year period, and to apply a three percent carrying cost to the unamortized regulatory asset. In December 2015, the PSCW approved NSP-Wisconsin’s 2016 rate case request for an increase to the annual recovery for MGP clean-up costs from $4.7 million to $7.6 million . In April 2016, NSP-Wisconsin filed a limited natural gas rate case for recovering additional expenses associated with remediating the Site. If approved, the annual recovery of MGP clean-up costs would increase from $7.6 million in 2016 to $12.4 million in 2017. Legal Contingencies NSP-Wisconsin is involved in various litigation matters that are being defended and handled in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, arising from such current proceedings would have a material effect on NSP-Wisconsin’s financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred. Employment, Tort and Commercial Litigation Gas Trading Litigation — e prime, inc. (e prime) is a wholly owned subsidiary of Xcel Energy. e prime was in the business of natural gas trading and marketing, but has not engaged in natural gas trading or marketing activities since 2003. Thirteen lawsuits were commenced against e prime and Xcel Energy (and NSP-Wisconsin, in two instances) between 2003 and 2009 alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices. The cases were consolidated in U.S. District Court in Nevada. In 2009, five of the cases were settled and one was dismissed. The U.S. District Court, in 2011, issued an order dismissing entirely six of the remaining seven lawsuits, and partially dismissing the seventh. Plaintiffs appealed the dismissals to the U.S. Court of Appeals for the Ninth Circuit (Ninth Circuit), which reversed the U.S. District Court. The matter was ultimately heard by the U.S. Supreme Court in early 2015, which agreed with the Ninth Circuit and remanded the matter to the U.S. District Court. In September 2015, the District Court held a status conference and set deadlines for certain litigation related activities in 2016. Trial dates have not yet been set, but are not expected to occur prior to early 2017. Xcel Energy, NSP-Wisconsin and e prime have concluded that a loss is remote with respect to this matter. |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | Borrowings and Other Financing Instruments Commercial Paper — NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility. Commercial paper outstanding for NSP-Wisconsin was as follows: (Amounts in Millions, Except Interest Rates) Three months Ended March 31, 2016 Twelve Months Ended Dec. 31, 2015 Borrowing limit $ 150 $ 150 Amount outstanding at period end 5 10 Average amount outstanding 14 39 Maximum amount outstanding 38 122 Weighted average interest rate, computed on a daily basis 0.66 % 0.44 % Weighted average interest rate at period end 0.65 0.70 Letters of Credit — NSP-Wisconsin uses letters of credit, generally with terms of one year , to provide financial guarantees for certain operating obligations. At March 31, 2016 and Dec. 31, 2015 , there were no letters of credit outstanding. Credit Facility — In order to use its commercial paper program to fulfill short-term funding needs, NSP-Wisconsin must have a revolving credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper in an aggregate amount exceeding available capacity under this credit facility. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. At March 31, 2016 , NSP-Wisconsin had the following committed credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 150 $ 5 $ 145 (a) This credit facility expires in 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 March 31, 2016 and Dec. 31, 2015 . Other Short-Term Borrowings — The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.: (Amounts in Millions, Except Interest Rates) March 31, 2016 Dec. 31, 2015 Notes payable to affiliates $ 0.5 $ 0.5 Weighted average interest rate at period end 0.60 % 0.87 % |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
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 prices. 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 March 31, 2016 , accumulated other comprehensive loss related to interest rate derivatives included $0.1 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for unsettled hedges, as applicable. Commodity Derivatives — NSP-Wisconsin may enter into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of natural gas to generate electric energy and natural gas for resale. The following table details the gross notional amounts of commodity options at March 31, 2016 and Dec. 31, 2015 : (Amounts in Thousands) (a)(b) March 31, 2016 Dec. 31, 2015 Million British thermal units of natural gas — 388 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss — There were immaterial pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings during the three months ended March 31, 2016 and 2015 . During the three months ended March 31, 2016 , changes in the fair value of natural gas commodity derivatives resulted in $0.1 million of net losses recognized as regulatory assets and liabilities, respectively. For the three months ended March 31, 2015 , changes in the fair value of natural gas commodity derivatives resulted in immaterial net losses recognized as regulatory assets and liabilities. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Natural gas commodity derivatives settlement losses of $0.6 million and gains of $1.0 million were recognized for the three months ended March 31, 2016 and 2015, respectively, and were subject to purchased natural gas cost recovery mechanisms, which result in reclassifications of derivative settlement gains and losses out of income to a regulatory asset or liability, as appropriate. NSP-Wisconsin had no derivative instruments designated as fair value hedges during the three months ended March 31, 2016 and 2015 . Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods. Consideration of Credit Risk and Concentrations — NSP-Wisconsin continuously monitors the creditworthiness of the counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement, and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Given this assessment, as well as an assessment of the impact of NSP-Wisconsin’s own credit risk when determining the fair value of derivative liabilities, the impact of considering credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the consolidated balance sheets. NSP-Wisconsin employs additional credit risk control mechanisms when appropriate, such as letters of credit, parental guarantees, standardized master netting agreements and termination provisions that allow for offsetting of positive and negative exposures. Credit exposure is monitored and, when necessary, the activity with a specific counterparty is limited until credit enhancement is provided. Recurring Fair Value Measurements — There were no recognized recurring fair value measurements at March 31, 2016. The following table presents for each of the fair value hierarchy levels, NSP-Wisconsin’s derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2015: Dec. 31, 2015 Fair Value Fair Value Total Counterparty Netting (a) Total (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ — $ 15 $ — $ 15 $ (11 ) $ 4 Total current derivative assets $ — $ 15 $ — $ 15 $ (11 ) $ 4 Current derivative liabilities Natural gas commodity $ — $ 194 $ — $ 194 $ (11 ) $ 183 Total current derivative liabilities $ — $ 194 $ — $ 194 $ (11 ) $ 183 (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, 2015 . 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 $2.4 million and other current liabilities balance of $15.8 million at Dec. 31, 2015, in the consolidated balance sheets. Fair Value of Long-Term Debt As of March 31, 2016 and Dec. 31, 2015 , other financial instruments for which the carrying amount did not equal fair value were as follows: March 31, 2016 Dec. 31, 2015 (Thousands of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (a) $ 662,616 $ 760,820 $ 662,449 $ 742,565 (a) Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03. The fair value of NSP-Wisconsin’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of March 31, 2016 and Dec. 31, 2015 , and given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2. |
Other (Expense) Income, Net
Other (Expense) Income, Net | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Other income, net consisted of the following: Three Months Ended March 31 (Thousands of Dollars) 2016 2015 Interest income $ 124 $ 297 Other nonoperating income 158 61 Insurance policy income (expense) 170 (106 ) Other nonoperating expense (3 ) (3 ) Other income, net $ 449 $ 249 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating results from the regulated electric utility and regulated natural gas utility are each separately and regularly reviewed by NSP-Wisconsin’s chief operating decision maker. NSP-Wisconsin evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment. NSP-Wisconsin has the following reportable segments: regulated electric utility, regulated natural gas utility and all other. • NSP-Wisconsin’s regulated electric utility segment generates, transmits and distributes electricity primarily in portions of Wisconsin and Michigan. • NSP-Wisconsin’s regulated natural gas utility segment purchases, transports, stores and distributes natural gas primarily in portions of Wisconsin and Michigan. • Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category. Those primarily include investments in rental housing projects that qualify for low-income housing tax credits. Asset and capital expenditure information is not provided for NSP-Wisconsin’s reportable segments because as an integrated electric and natural gas utility, NSP-Wisconsin operates significant assets that are not dedicated to a specific business segment, and reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis. To report income from operations for regulated electric and regulated natural gas utility segments, the majority of costs are directly assigned to each segment. However, some costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators. A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising. (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2016 Operating revenues (a)(b) $ 211,524 $ 43,020 $ 306 $ — $ 254,850 Intersegment revenues 109 80 — (189 ) — Total revenues $ 211,633 $ 43,100 $ 306 $ (189 ) $ 254,850 Net income $ 11,501 $ 6,092 $ 38 $ — $ 17,631 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2015 Operating revenues (a) $ 210,284 $ 63,296 $ 380 $ — $ 273,960 Intersegment revenues 109 225 — (334 ) — Total revenues $ 210,393 $ 63,521 $ 380 $ (334 ) $ 273,960 Net income (loss) $ 15,514 (b) $ 6,781 $ (28 ) $ — $ 22,267 (a) Operating revenues include $41 million and $38 million of affiliate electric revenue for the three months ended March 31, 2016 and 2015 , respectively. (b) Includes a net of tax charge related to the Monticello LCM/EPU project. See Note 5. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits Components of Net Periodic Benefit Cost Three Months Ended March 31 2016 2015 2016 2015 (Thousands of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 1,104 $ 1,190 $ 6 $ 7 Interest cost 1,704 1,630 163 163 Expected return on plan assets (2,289 ) (2,371 ) (6 ) (8 ) Amortization of prior service cost (credit) 28 28 (88 ) (88 ) Amortization of net loss 1,348 1,701 83 114 Net benefit cost recognized for financial reporting $ 1,895 $ 2,178 $ 158 $ 188 In January 2016, contributions of $125.0 million were made across four of Xcel Energy’s pension plans, of which $7.4 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2016. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income Changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2016 and 2015 were as follows: Gains and Losses on Cash Flow Hedges (Thousands of Dollars) Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Accumulated other comprehensive loss at Jan. 1 $ (209 ) $ (285 ) Losses reclassified from net accumulated other comprehensive loss 19 19 Net current period other comprehensive income 19 19 Accumulated other comprehensive loss at March 31 $ (190 ) $ (266 ) Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2016 and 2015 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Losses on cash flow hedges: Interest rate derivatives $ 32 (a) $ 32 (a) Total, pre-tax 32 32 Tax benefit (13 ) (13 ) Total amounts reclassified, net of tax $ 19 $ 19 (a) Included in interest charges. |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 3 Months Ended | |
Mar. 31, 2016 | ||
Balance Sheet Related Disclosures [Abstract] | ||
Accounts Receivable, Net | (Thousands of Dollars) March 31, 2016 Dec. 31, 2015 Accounts receivable, net (a) Accounts receivable $ 64,138 $ 61,506 Less allowance for bad debts (4,963 ) (5,128 ) $ 59,175 $ 56,378 | [1] |
Inventories | (Thousands of Dollars) March 31, 2016 Dec. 31, 2015 Inventories Materials and supplies $ 6,676 $ 6,785 Fuel 5,881 6,528 Natural gas 2,285 8,246 $ 14,842 $ 21,559 | |
Property, Plant and Equipment, Net | (Thousands of Dollars) March 31, 2016 Dec. 31, 2015 Property, plant and equipment, net Electric plant $ 2,431,503 $ 2,411,562 Natural gas plant 276,568 275,376 Common and other property 134,327 132,329 Construction work in progress 77,148 65,755 Total property, plant and equipment 2,919,546 2,885,022 Less accumulated depreciation (1,073,779 ) (1,056,943 ) $ 1,845,767 $ 1,828,079 | |
[1] | Accounts receivable, net includes an immaterial amount due from affiliates as of March 31, 2016 and Dec. 31, 2015, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the amount of unrecognized tax benefit is as follows: (Millions of Dollars) March 31, 2016 Dec. 31, 2015 Unrecognized tax benefit — Permanent tax positions $ 0.3 $ 0.2 Unrecognized tax benefit — Temporary tax positions 4.3 4.3 Total unrecognized tax benefit $ 4.6 $ 4.5 |
Tax Benefits Associated with NOL and Tax Credit Carryforwards | The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: (Millions of Dollars) March 31, 2016 Dec. 31, 2015 NOL and tax credit carryforwards $ (1.0 ) $ (0.9 ) |
Rate Matters Rate Matters (Tabl
Rate Matters Rate Matters (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Public Utilities, General Disclosures [Abstract] | |
NSP-WI 2017 Electric and Gas Rate Request [Table Text Block] | The major components of the requested rate increases are summarized below: Electric Rate Request (Millions of Dollars) Request Rate base investments $ 11.0 Generation and transmission expenses (excluding fuel and purchased power) (a) 6.8 Fuel and purchased power expenses 11.0 Subtotal 28.8 2015 fuel refund (9.5 ) Department of Energy settlement refund (1.9 ) Total electric rate increase $ 17.4 (a) Includes Interchange Agreement billings. The Interchange Agreement is a Federal Energy Regulatory Commission (FERC) tariff under which NSP-Wisconsin and its affiliate, NSP-Minnesota, own and operate a single integrated electric generation and transmission system and both companies pay a pro-rata share of system capital and operating costs. For financial reporting purposes, these expenses are included in operating and maintenance (O&M) expenses. Natural Gas Rate Request (Millions of Dollars) Request Environmental remediation expenses $ 4.8 Total natural gas rate increase $ 4.8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees Issued and Outstanding | The following table presents the guarantee issued and outstanding for NSP-Wisconsin: (Millions of Dollars) March 31, 2016 Dec. 31, 2015 Guarantee issued and outstanding $ 1.0 $ 1.0 Current exposure under this guarantee 0.1 0.1 |
Borrowings and Other Financin26
Borrowings and Other Financing Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | At March 31, 2016 , NSP-Wisconsin had the following committed credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 150 $ 5 $ 145 (a) This credit facility expires in October 2019 . (b) Includes outstanding commercial paper. |
Commercial Paper | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding for NSP-Wisconsin was as follows: (Amounts in Millions, Except Interest Rates) Three months Ended March 31, 2016 Twelve Months Ended Dec. 31, 2015 Borrowing limit $ 150 $ 150 Amount outstanding at period end 5 10 Average amount outstanding 14 39 Maximum amount outstanding 38 122 Weighted average interest rate, computed on a daily basis 0.66 % 0.44 % Weighted average interest rate at period end 0.65 0.70 |
Notes Payable To Affiliates | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Other Short-Term Borrowings — The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.: (Amounts in Millions, Except Interest Rates) March 31, 2016 Dec. 31, 2015 Notes payable to affiliates $ 0.5 $ 0.5 Weighted average interest rate at period end 0.60 % 0.87 % |
Fair Value of Financial Asset27
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity Forwards and Options | The following table details the gross notional amounts of commodity options at March 31, 2016 and Dec. 31, 2015 : (Amounts in Thousands) (a)(b) March 31, 2016 Dec. 31, 2015 Million British thermal units of natural gas — 388 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | Recurring Fair Value Measurements — There were no recognized recurring fair value measurements at March 31, 2016. The following table presents for each of the fair value hierarchy levels, NSP-Wisconsin’s derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2015: Dec. 31, 2015 Fair Value Fair Value Total Counterparty Netting (a) Total (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ — $ 15 $ — $ 15 $ (11 ) $ 4 Total current derivative assets $ — $ 15 $ — $ 15 $ (11 ) $ 4 Current derivative liabilities Natural gas commodity $ — $ 194 $ — $ 194 $ (11 ) $ 183 Total current derivative liabilities $ — $ 194 $ — $ 194 $ (11 ) $ 183 (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, 2015 . 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 $2.4 million and other current liabilities balance of $15.8 million at Dec. 31, 2015, in the consolidated balance sheets. |
Carrying Amount and Fair Value of Long-term Debt | As of March 31, 2016 and Dec. 31, 2015 , other financial instruments for which the carrying amount did not equal fair value were as follows: March 31, 2016 Dec. 31, 2015 (Thousands of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (a) $ 662,616 $ 760,820 $ 662,449 $ 742,565 (a) Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other income, net consisted of the following: Three Months Ended March 31 (Thousands of Dollars) 2016 2015 Interest income $ 124 $ 297 Other nonoperating income 158 61 Insurance policy income (expense) 170 (106 ) Other nonoperating expense (3 ) (3 ) Other income, net $ 449 $ 249 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Results from Operations by Reportable Segment | (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2016 Operating revenues (a)(b) $ 211,524 $ 43,020 $ 306 $ — $ 254,850 Intersegment revenues 109 80 — (189 ) — Total revenues $ 211,633 $ 43,100 $ 306 $ (189 ) $ 254,850 Net income $ 11,501 $ 6,092 $ 38 $ — $ 17,631 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2015 Operating revenues (a) $ 210,284 $ 63,296 $ 380 $ — $ 273,960 Intersegment revenues 109 225 — (334 ) — Total revenues $ 210,393 $ 63,521 $ 380 $ (334 ) $ 273,960 Net income (loss) $ 15,514 (b) $ 6,781 $ (28 ) $ — $ 22,267 (a) Operating revenues include $41 million and $38 million of affiliate electric revenue for the three months ended March 31, 2016 and 2015 , respectively. (b) Includes a net of tax charge related to the Monticello LCM/EPU project. See Note 5. |
Benefit Plans and Other Postr30
Benefit Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Three Months Ended March 31 2016 2015 2016 2015 (Thousands of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 1,104 $ 1,190 $ 6 $ 7 Interest cost 1,704 1,630 163 163 Expected return on plan assets (2,289 ) (2,371 ) (6 ) (8 ) Amortization of prior service cost (credit) 28 28 (88 ) (88 ) Amortization of net loss 1,348 1,701 83 114 Net benefit cost recognized for financial reporting $ 1,895 $ 2,178 $ 158 $ 188 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | Changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2016 and 2015 were as follows: Gains and Losses on Cash Flow Hedges (Thousands of Dollars) Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Accumulated other comprehensive loss at Jan. 1 $ (209 ) $ (285 ) Losses reclassified from net accumulated other comprehensive loss 19 19 Net current period other comprehensive income 19 19 Accumulated other comprehensive loss at March 31 $ (190 ) $ (266 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2016 and 2015 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Losses on cash flow hedges: Interest rate derivatives $ 32 (a) $ 32 (a) Total, pre-tax 32 32 Tax benefit (13 ) (13 ) Total amounts reclassified, net of tax $ 19 $ 19 (a) Included in interest charges. |
Accounting Pronouncements Debt
Accounting Pronouncements Debt Issuance Costs (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Reclassification of deferred debt issuance costs, net | $ 5 | $ 5.1 |
Other Noncurrent Assets | ||
Debt Instrument [Line Items] | ||
Reclassification of deferred debt issuance costs, net | $ (5.1) |
Selected Balance Sheet Data, Ac
Selected Balance Sheet Data, Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable, Net | ||
Accounts receivable | $ 64,138 | $ 61,506 |
Less allowance for bad debts | (4,963) | (5,128) |
Accounts receivable, net | $ 59,175 | $ 56,378 |
Selected Balance Sheet Data, In
Selected Balance Sheet Data, Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 14,842 | $ 21,559 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 6,676 | 6,785 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 5,881 | 6,528 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 2,285 | $ 8,246 |
Selected Balance Sheet Data, Pr
Selected Balance Sheet Data, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,919,546 | $ 2,885,022 |
Less accumulated depreciation | (1,073,779) | (1,056,943) |
Property, plant and equipment, net | 1,845,767 | 1,828,079 |
Electric plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,431,503 | 2,411,562 |
Natural gas plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 276,568 | 275,376 |
Common and other property | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 134,327 | 132,329 |
Construction work in progress | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 77,148 | $ 65,755 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2012 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
Upper bound of decrease in unrecognized tax benefit that is reasonably possible | $ 2,000,000 | |||
Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized tax benefit — Permanent tax positions | 300,000 | $ 200,000 | ||
Unrecognized tax benefit — Temporary tax positions | 4,300,000 | 4,300,000 | ||
Total unrecognized tax benefit | 4,600,000 | 4,500,000 | ||
NOL and tax credit carryforwards | (1,000,000) | (900,000) | ||
Amounts accrued for penalties related to unrecognized tax benefits | 0 | $ 0 | ||
Internal Revenue Service (IRS) | ||||
Tax Audits [Abstract] | ||||
Year(s) under examination | 2012 and 2013 | 2010 and 2011 | ||
Year of carryback claim under examination | 2,009 | |||
Potential Tax Adjustments | $ 14,000,000 | |||
State Jurisdiction (Wisconsin) | ||||
Tax Audits [Abstract] | ||||
Earliest year subject to examination | 2,011 |
Rate Matters Rate Matters (Deta
Rate Matters Rate Matters (Details) $ in Thousands | Apr. 01, 2016USD ($) | Jan. 06, 2015 | Dec. 31, 2015 | Mar. 31, 2015USD ($) | Feb. 28, 2015 | Jun. 30, 2014 | Nov. 30, 2013 | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015MW | Dec. 31, 2013USD ($) | Dec. 31, 2008USD ($) | |
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Loss on Monticello life cycle management/extended power uprate project | $ 0 | $ 5,237 | |||||||||||
NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Nuclear Project Expenditures, Amount | $ 665,000 | ||||||||||||
Total Capitalized Nuclear Project Costs | $ 748,000 | ||||||||||||
Initial Estimated Nuclear Project Expenditures | $ 320,000 | ||||||||||||
NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation | Minnesota Public Utilities Commission [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Amount Of Recoverable Investment, With Return | $ 415,000 | ||||||||||||
Public Utilities, Amount Of Recoverable Investment, Without A Return | $ 333,000 | ||||||||||||
Public Utilities, Percentage Of Investment Considered Used And Useful | 50.00% | ||||||||||||
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Base Return On Equity Charged To Customers Through Transmission Formula Rates | 12.38% | 12.38% | |||||||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties | 8.67% | 9.15% | |||||||||||
Public Utilities, Maximum Equity Capital Structure Percentage Allowed Per The Complaint | 50.00% | ||||||||||||
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | Federal Energy Regulatory Commission (FERC) | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Number Of Steps Required For Newly Adopted ROE Discounted Cash Flow Methodology | 2 | ||||||||||||
Public Utilities, ROE Basis Point Adder Requested By Third Parties | 50 | ||||||||||||
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | Administrative Law Judge [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties | 10.32% | ||||||||||||
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | MPUC, NDPSC, SDPUC, and DOC [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Upper Bound, Percentage | 8.82% | ||||||||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Lower Bound, Percentage | 8.81% | ||||||||||||
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | FERC Staff [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties | 8.78% | ||||||||||||
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | MISO TOs [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties | 10.92% | ||||||||||||
Xcel Energy Inc. | MPUC Proceeding - Nuclear Project Prudency Investigation | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Loss on Monticello life cycle management/extended power uprate project | 129,000 | ||||||||||||
NSP-Wisconsin | MPUC Proceeding - Nuclear Project Prudency Investigation | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Loss on Monticello life cycle management/extended power uprate project | $ 5,000 | ||||||||||||
Minimum | NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Facility Generating Capacity, In MW | MW | 600 | ||||||||||||
Minimum | NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Decrease In Transmission Revenue, Net Of Expense, Due To New ROE Methodology | $ 8,000 | ||||||||||||
Maximum | NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Facility Generating Capacity, In MW | MW | 671 | ||||||||||||
Maximum | NSP-Minnesota | FERC Proceeding, MISO ROE Complaint [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Decrease In Transmission Revenue, Net Of Expense, Due To New ROE Methodology | $ 10,000 | ||||||||||||
Subsequent Event [Member] | NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Electric Rates 2017 [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 17,400 | ||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 2.40% | ||||||||||||
Public Utilities, Requested Rate Base, Amount | $ 1,188,000 | ||||||||||||
Public Utilities, Requested Increase Related to Rate Base Investments | 11,000 | ||||||||||||
Public Utilities, Requested Increase Related to Generation and Transmission Expenses | [1] | 6,800 | |||||||||||
Public Utilities, Requested Increase Related to Fuel and Purchased Power Expenses | 11,000 | ||||||||||||
Public Utilities, Total Requested Rate Increase Excluding Refunds | 28,800 | ||||||||||||
Public Utilities, Requested Decrease Related to Fuel Refunds | (9,500) | ||||||||||||
Public Utilities, Requested Decrease Related to Settlement Refund | $ (1,900) | ||||||||||||
Subsequent Event [Member] | NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Requested Return on Equity, Percentage | 10.00% | ||||||||||||
Public Utilities, Percentage of Excess Earnings to be Refunded due to Earnings Cap | 100.00% | ||||||||||||
Subsequent Event [Member] | NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Gas Rates 2017 [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 4,800 | ||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 3.90% | ||||||||||||
Public Utilities, Increase Related Environmental Remediation Expenses | $ 4,800 | ||||||||||||
[1] | Includes Interchange Agreement billings. The Interchange Agreement is a Federal Energy Regulatory Commission (FERC) tariff under which NSP-Wisconsin and its affiliate, NSP-Minnesota, own and operate a single integrated electric generation and transmission system and both companies pay a pro-rata share of system capital and operating costs. For financial reporting purposes, these expenses are included in operating and maintenance (O&M) expenses. |
Commitments and Contingencies,
Commitments and Contingencies, Guarantees and Indemnifications (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Guarantor Obligations [Line Items] | ||
Assets Held As Collateral | $ 0 | $ 0 |
Payment or Performance Guarantee | Customer Loans for Farm Rewiring Program | ||
Guarantees [Abstract] | ||
Guarantee issued and outstanding | 1,000,000 | 1,000,000 |
Current exposure under this guarantee | $ 100,000 | $ 100,000 |
Commitments and Contingencies39
Commitments and Contingencies, Environmental Contingencies - Site Contingencies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)Site | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | |
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | |||
Liability for estimated cost of remediating sites, current | $ 17,453 | $ 17,155 | |
Ashland MGP Site | |||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | |||
Number of properties not owned included in superfund site | Site | 2 | ||
Accrual for Environmental Loss Contingencies, Gross | $ 94,200 | 94,400 | |
Liability for estimated cost of remediating sites, current | 17,200 | 17,000 | |
Public Utilities, Annual recovery collected through base rates | $ 4,700 | ||
Ashland MGP Site - Phase I Project Area | |||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | |||
Accrual for Environmental Loss Contingencies, Gross | 68,000 | ||
Estimated amount spent on cleanup | $ 51,000 | ||
Approved amortization period for recovery of remediation costs in natural gas rates (in years) | 10 years | ||
Carrying cost percentage to be applied to unamortized regulatory asset | 3.00% | ||
Ashland MGP Site - Sediments | |||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | |||
Estimated cost of remediating site, low end of range | $ 63,000 | ||
Estimated cost of remediating site, high end of range | $ 77,000 | ||
Potential percent of increase to the high end of the range of estimated site remediation costs (as a percent) | 50.00% | ||
Potential percent of decrease to the low end of the range of estimated site remediation costs (as a percent) | 30.00% | ||
PSCW Proceeding - Electric and Gas Rate Case 2016 - Gas Rates 2016 | Ashland MGP Site | |||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | |||
Public Utilities, Approved annual recovery collected through base rates | $ 7,600 | ||
Other PRPs | Ashland MGP Site | |||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | |||
Number of PRPs that have contributed to remediation site | 3 | ||
Contributions to site cleanup by PRPs | $ 15,900 | ||
Scenario, Forecast [Member] | PSCW Proceeding - Gas Rate Case 2017 - Gas Rates 2017 [Member] | Ashland MGP Site | |||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | |||
Public Utilities, Requested annual recovery collected through base rates | $ 12,400 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Legal Contingencies (Details) - Gas Trading Litigation | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2009 | |
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 7 | 13 |
Loss Contingency, Claims Settled, Number | 5 | |
Loss Contingency, Claims Dismissed, Number | 6 | 1 |
NSP-Wisconsin | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 2 |
Borrowings and Other Financin41
Borrowings and Other Financing Instruments, Commercial Paper (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 5,000,000 | $ 10,000,000 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 150,000,000 | 150,000,000 |
Amount outstanding at period end | 5,000,000 | 10,000,000 |
Average amount outstanding | 14,000,000 | 39,000,000 |
Maximum amount outstanding | $ 38,000,000 | $ 122,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.66% | 0.44% |
Weighted average interest rate at period end (percentage) | 0.65% | 0.70% |
Borrowings and Other Financin42
Borrowings and Other Financing Instruments, Letters of Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 5,000 | $ 10,000 |
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 Financin43
Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Line of Credit Facility [Line Items] | |||
Credit Facility | [1] | $ 150,000,000 | |
Drawn | [2] | 5,000,000 | |
Available | $ 145,000,000 | ||
Debt Instrument, Maturity Date | Oct. 31, 2019 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1] | This credit facility expires in October 2019. | ||
[2] | Includes outstanding commercial paper. |
Borrowings and Other Financin44
Borrowings and Other Financing Instruments, Intercompany Borrowing Arrangement and Other Short-Term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Notes payable to affiliates | $ 500 | $ 500 |
Notes Payable To Affiliates | ||
Short-term Debt [Line Items] | ||
Notes payable to affiliates | $ 500 | $ 500 |
Weighted average interest rate at period end (percentage) | 0.60% | 0.87% |
Fair Value of Financial Asset45
Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) MMBTU in Thousands, $ in Millions | Mar. 31, 2016USD ($)MMBTU | Dec. 31, 2015MMBTU | |
Interest Rate Swap | |||
Interest Rate Derivatives [Abstract] | |||
Amount of accumulated other comprehensive gains (losses) related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | $ | $ (0.1) | ||
Natural Gas Commodity (in million British thermal units) | |||
Gross Notional Amounts of Commodity Options [Abstract] | |||
Derivative, Nonmonetary Notional amount | MMBTU | [1],[2] | 0 | 388 |
[1] | Amounts are not reflective of net positions in the underlying commodities. | ||
[2] | Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Fair Value of Financial Asset46
Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract] | ||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 |
Recognized gains (losses) from fair value hedges or related hedged transactions | 0 | 0 |
Other Derivative Instruments | Natural Gas Commodity | ||
Impact of Derivative Activity on Accumulated Other Comprehensive 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) | |
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | $ 600,000 | $ (1,000,000) |
Fair Value of Financial Asset47
Fair Value of Financial Assets and Liabilities, Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Prepayments and other | $ 2,226 | $ 2,387 | |
Other Liabilities, Current | $ 16,379 | 15,778 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 4 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 4 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | [1] | 183 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 183 | ||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | ||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | ||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 0 | ||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 0 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 15 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 15 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 194 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 194 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 0 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 0 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | |||
Derivatives, Fair Value [Line Items] | |||
Prepayments and other | 2,400 | ||
Other Liabilities, Current | 15,800 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 15 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 15 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Liabilities | Other Derivative Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 194 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 194 | ||
Fair Value Measured on a Recurring Basis | Netting | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [2] | (11) | |
Fair Value Measured on a Recurring Basis | Netting | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [2] | (11) | |
Fair Value Measured on a Recurring Basis | Netting | Other Current Liabilities | Other Derivative Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | [2] | (11) | |
Fair Value Measured on a Recurring Basis | Netting | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | [2] | $ (11) | |
[1] | Included in other current assets balance of $2.4 million and other current liabilities balance of $15.8 million at Dec. 31, 2015, in the consolidated balance sheets. | ||
[2] | NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2015. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. |
Fair Value of Financial Asset48
Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Carrying Amount | |||
Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, including current portion (a) | [1] | $ 662,616 | $ 662,449 |
Fair Value | |||
Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, including current portion (a) | [1] | $ 760,820 | $ 742,565 |
[1] | Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03. |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 124 | $ 297 |
Other nonoperating income | 158 | 61 |
Insurance policy income (expense) | 170 | (106) |
Other nonoperating expense | (3) | (3) |
Other income, net | $ 449 | $ 249 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 254,850 | $ 273,960 | ||
Net income (loss) | 17,631 | 22,267 | ||
Affiliate electric revenue | 41,000 | 38,000 | ||
Regulated Electric | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 211,633 | 210,393 | ||
Net income (loss) | 11,501 | 15,514 | [1] | |
Regulated Natural Gas | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 43,100 | 63,521 | ||
Net income (loss) | 6,092 | 6,781 | ||
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 306 | 380 | ||
Net income (loss) | 38 | (28) | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | [2] | 254,850 | 273,960 | |
Operating Segments | Regulated Electric | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | [2] | 211,524 | 210,284 | |
Operating Segments | Regulated Natural Gas | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 43,020 | 63,296 | ||
Operating Segments | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 306 | 380 | ||
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (189) | (334) | ||
Net income (loss) | 0 | 0 | ||
Intersegment Eliminations | Regulated Electric | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 109 | 109 | ||
Intersegment Eliminations | Regulated Natural Gas | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 80 | 225 | ||
Intersegment Eliminations | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 0 | $ 0 | ||
[1] | (b) Includes a net of tax charge related to the Monticello LCM/EPU project. See Note 5. | |||
[2] | (a) Operating revenues include $41 million and $38 million of affiliate electric revenue for the three months ended March 31, 2016 and 2015, respectively. |
Benefit Plans and Other Postr51
Benefit Plans and Other Postretirement Benefits (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2016USD ($)Plan | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Pension Benefits | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 1,104 | $ 1,190 | |
Interest cost | 1,704 | 1,630 | |
Expected return on plan assets | (2,289) | (2,371) | |
Amortization of prior service cost (credit) | 28 | 28 | |
Amortization of net loss | 1,348 | 1,701 | |
Net benefit cost recognized for financial reporting | 1,895 | 2,178 | |
Total contributions to the pension plans during the period | $ 7,400 | ||
Postretirement Health Care Benefits | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | 6 | 7 | |
Interest cost | 163 | 163 | |
Expected return on plan assets | (6) | (8) | |
Amortization of prior service cost (credit) | (88) | (88) | |
Amortization of net loss | 83 | 114 | |
Net benefit cost recognized for financial reporting | $ 158 | $ 188 | |
Xcel Energy Inc. | Pension Benefits | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Total contributions to the pension plans during the period | $ 125,000 | ||
Number of Xcel Energy's pension plans to which contributions were made | Plan | 4 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss at beginning of period | $ (209) | ||
Accumulated other comprehensive loss at end of period | (190) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total, pre-tax | (28,450) | $ (35,331) | |
Tax benefit | 10,819 | 13,064 | |
Gains and Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss at beginning of period | (209) | (285) | |
Losses reclassified from net accumulated other comprehensive loss | 19 | 19 | |
Net current period other comprehensive income | 19 | 19 | |
Accumulated other comprehensive loss at end of period | (190) | (266) | |
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 | 32 | 32 | |
Tax benefit | (13) | (13) | |
Total, net of tax | 19 | 19 | |
Gains and Losses on Cash Flow Hedges | Interest Rate Derivatives | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest charges | [1] | $ 32 | $ 32 |
[1] | Included in interest charges. |