Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

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 — The regulated electric utility segment generates electricity which is transmitted and distributed in 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. The regulated electric utility segment also includes NSP-Minnesota’s wholesale commodity and trading operations.

•Regulated Natural Gas — The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Minnesota and North Dakota.

NSP-Minnesota also presents All Other, which includes operating segments with revenues below the necessary quantitative thresholds. Those operating segments primarily include appliance repair services, non-utility 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. As an integrated electric and natural gas utility, NSP-Minnesota operates significant assets that are not dedicated to a specific business segment. 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.

Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

NSP-Minnesota’s segment information:

	Three Months Ended Sept. 30
(Millions of Dollars)	2023		2022
Regulated Electric
Total revenues (a)	$	1,513	$	1,730
Net income	263		275
Regulated Natural Gas
Operating revenues (b)	$	65	$	102
Intersegment revenue	1		—
Total revenues	$	66	$	102
Net loss	(8)		(12)
All Other
Total revenues	$	13	$	12
Net income	5		6
Consolidated Total
Operating revenues (a)(b)	$	1,592	$	1,844
Reconciling eliminations	(1)		—
Total operating revenues	$	1,591	$	1,844
Net income	260		269

(a)    Operating revenues include $130 million and $132 million of affiliate electric revenue for the three months ended Sept. 30, 2023 and 2022.

(b)    Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended Sept. 30, 2023 and 2022.

	Nine Months Ended Sept. 30
(Millions of Dollars)	2023		2022
Regulated Electric
Total revenues (a)	$	3,958	$	4,308
Net income	508		486
Regulated Natural Gas
Operating revenues (b)	$	563	$	703
Intersegment revenue	2		1
Total revenues	$	565	$	704
Net income	13		21
All Other
Total revenues	$	35	$	33
Net income	5		7
Consolidated Total
Operating revenues (a)(b)	$	4,558	$	5,045
Reconciling eliminations	(2)		(1)
Total operating revenues	$	4,556	$	5,044
Net income	526		514

(a)    Operating revenues include $368 million and $394 million of affiliate electric revenue for the six months ended Sept. 30, 2023 and 2022.

(b)    Operating revenues include an immaterial amount of affiliate gas revenue for the nine months ended Sept. 30, 2023 and 2022.