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-Minnesota’s chief operating decision maker. NSP-Minnesota 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-Minnesota has the following reportable segments: regulated electric utility, regulated natural gas utility and all other.

• NSP-Minnesota’s regulated electric utility segment generates, transmits and distributes electricity primarily in portions of Minnesota, North Dakota and South Dakota. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. Regulated electric utility also includes NSP-Minnesota’s commodity trading operations.

• NSP-Minnesota’s regulated natural gas utility segment transports, stores and distributes natural gas primarily in portions of Minnesota and North Dakota.

• 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 appliance repair services, nonutility real estate activities and revenues associated with processing solid waste into refuse-derived fuel.

Asset and capital expenditure information is not provided for NSP-Minnesota’s reportable segments because as an integrated electric and natural gas utility, NSP-Minnesota 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)	$	1,033,643	$	194,130	$	6,860	$	—		$	1,234,633
Intersegment revenues	145		162		—		(307		)	—
Total revenues	$	1,033,788	$	194,292	$	6,860	$	(307	)	$	1,234,633
Net income	$	71,321	$	23,142	$	166	$	—		$	94,629

(Thousands of Dollars)	Regulated Electric				Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
Three Months Ended March 31, 2015
Operating revenues (a)(b)	$	1,006,154			$	279,467	$	6,861		$	—		$	1,292,482
Intersegment revenues	133				410		—			(543		)	—
Total revenues	$	1,006,287			$	279,877	$	6,861		$	(543	)	$	1,292,482
Net income (loss)	$	(29,599	)	(c)	$	40,272	$	(3,749	)	$	—		$	6,924

^(a)  Operating revenues include $125 million of affiliate electric revenue for the three months ended March 31, 2016 and 2015.

^(b)  Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2016 and 2015.

^(c)  Includes a net of tax charge related to the Monticello LCM/EPU project.  See Note 5.