10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-03140

Northern States Power Company

(Exact name of registrant as specified in its charter)

Wisconsin			39-0508315
(State or other jurisdiction of incorporation or organization)			(I.R.S Employer Identification No.)
1414 West Hamilton Avenue	Eau Claire	Wisconsin	54701
(Address of principal executive offices)			(Zip Code)

(715)	737-2625
(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes  ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at July 29, 2021
Common Stock, $100 par value	933,000 shares

Northern States Power Company meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to such Form 10-Q.

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION
Item 1 —	Financial Statements (unaudited)	4
	Consolidated Statements of Income	4
	Consolidated Statements of Cash Flows	5
	Consolidated Balance Sheets	6
	Consolidated Statements of Common Stockholder's Equity	7
	Notes to Consolidated Financial Statements	8
Item 2 —	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 4 —	Controls and Procedures	15
PART II	OTHER INFORMATION
Item 1 —	Legal Proceedings	15
Item 1A —	Risk Factors	15
Item 6 —	Exhibits	16
SIGNATURES		17

This Form 10-Q is filed by Northern States Power Company, a Wisconsin corporation (NSP-Wisconsin). NSP-Wisconsin is a wholly owned subsidiary of Xcel Energy Inc. Additional information on Xcel Energy is available on various filings with the Securities and Exchange Commission. This report should be read in its entirety.

Definitions of Abbreviations

Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former)
e prime	e prime inc.
NSP-Minnesota	Northern States Power Company, a Minnesota corporation
NSP-Wisconsin	Northern States Power Company, a Wisconsin corporation
PSCo	Public Service Company of Colorado
SPS	Southwestern Public Service Company
Utility subsidiaries	NSP-Minnesota, NSP-Wisconsin, PSCo and SPS
Xcel Energy	Xcel Energy Inc. and its subsidiaries

Federal and State Regulatory Agencies
D.C. Circuit	United States Court of Appeals for the District of Columbia Circuit
EPA	United States Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
IRS	Internal Revenue Service
PSCW	Public Service Commission of Wisconsin
SEC	Securities and Exchange Commission

Other
ASC	FASB Accounting Standards Codification
C&I	Commercial and Industrial
CEO	Chief executive officer
CFO	Chief financial officer
COVID-19	Novel coronavirus
ETR	Effective tax rate
FASB	Financial Accounting Standards Board
GAAP	United States generally accepted accounting principles
MDL	Multi-district litigation
MGP	Manufactured gas plant
MISO	Midcontinent Independent System Operator, Inc.
NOL	Net operating loss
O&M	Operating and maintenance
PFAS	Per- and PolyFluoroAlkyl Substances
ROE	Return on equity
RTO	Regional Transmission Organization
TOs	Transmission owners

Forward-Looking Statements

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to future sales, future expenses, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, and expected impacts on our results of operations, financial condition and cash flows or resettlement calculations and credit losses relating to certain energy transactions, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed elsewhere in this Quarterly Report on Form 10-Q and in other filings with the SEC (including NSP-Wisconsin's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020, and subsequent filings), could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of NSP-Wisconsin and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(amounts in millions)

	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Operating revenues
Electric, non-affiliates	$	178	$	158	$	356	$	329
Electric, affiliates	46		41		92		82
Natural gas	31		19		88		64
Total operating revenues	255		218		536		475
Operating expenses
Electric fuel and purchased power, non-affiliates	5		3		10		6
Purchased power, affiliates	106		91		206		186
Cost of natural gas sold and transported	20		7		51		28
Operating and maintenance expenses	50		45		99		94
Conservation program expenses	3		3		6		6
Depreciation and amortization	36		39		73		77
Taxes (other than income taxes)	8		7		15		14
Total operating expenses	228		195		460		411
Operating income	27		23		76		64
Other expense, net	—		(2)		—		(4)
Allowance for funds used during construction — equity	1		1		2		3
Interest charges and financing costs
Interest charges	12		10		21		20
Allowance for funds used during construction — debt	(1)		(1)		(1)		(1)
Total interest charges and financing costs	11		9		20		19
Income before income taxes	17		13		58		44
Income tax expense (benefit)	3		1		12		(2)
Net income	$	14	$	12	$	46	$	46

See Notes to Consolidated Financial Statements

4

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in millions)

	Six Months Ended June 30
	2021		2020
Operating activities
Net income	$	46	$	46
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	73		78
Deferred income taxes	10		(15)
Allowance for equity funds used during construction	(2)		(3)
Provision for bad debts	2		3
Changes in operating assets and liabilities:
Accounts receivable	10		(4)
Accrued unbilled revenues	5		10
Inventories	(1)		—
Other current assets	(6)		—
Accounts payable	9		(3)
Net regulatory assets and liabilities	(47)		5
Other current liabilities	(2)		(2)
Pension and other employee benefit obligations	(5)		(7)
Other, net	2		—
Net cash provided by operating activities	94		108
Investing activities
Capital/construction expenditures	(111)		(121)
Net cash used in investing activities	(111)		(121)
Financing activities
Repayments of short-term borrowings, net	(19)		(65)
Borrowings under utility money pool arrangement	186		—
Repayments under utility money pool arrangement	(153)		—
Proceeds from long-term debt	—		98
Capital contributions from parent	40		37
Dividends paid to parent	(38)		(32)
Other, net	1		—
Net cash provided by financing activities	17		38
Net change in cash, cash equivalents and restricted cash	—		25
Cash, cash equivalents and restricted cash at beginning of period	2		1
Cash, cash equivalents and restricted cash at end of period	$	2	$	26
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	$	(19)	$	(18)
Cash paid for income taxes, net	(13)		(13)
Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additions	$	19	$	18
Inventory transfers to property, plant and equipment	2		2
Allowance for equity funds used during construction	2		3

See Notes to Consolidated Financial Statements

5

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(amounts in millions, except share and per share data)

	June 30, 2021		Dec. 31, 2020
Assets
Current assets
Cash and cash equivalents	$	2	$	2
Accounts receivable, net	61		70
Accrued unbilled revenues	48		53
Other Receivables	2		1
Inventories	15		15
Regulatory assets	47		19
Prepaid taxes	30		24
Prepayments and other	5		7
Total current assets	210		191
Property, plant and equipment, net	2,541		2,484
Other assets
Regulatory assets	216		215
Other Investments	3		3
Other	2		1
Total other assets	221		219
Total assets	$	2,972	$	2,894
Liabilities and Equity
Current liabilities
Current portion of long-term debt	$	19	$	19
Short-term debt	—		19
Borrowings under utility money pool arrangement	33		—
Accounts payable	47		41
Accounts payable to affiliates	29		15
Dividends payable to parent	15		19
Regulatory liabilities	7		31
Taxes accrued	8		12
Environmental liabilities	4		4
Accrued interest	10		10
Other	17		15
Total current liabilities	189		185
Deferred credits and other liabilities
Deferred income taxes	321		307
Deferred investment tax credits	6		—
Regulatory liabilities	369		350
Environmental liabilities	15		16
Customer advances	21		20
Pension and employee benefit obligations	23		28
Other	27		33
Total deferred credits and other liabilities	782		754
Commitments and contingencies
Capitalization
Long-term debt	888		887
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares      outstanding at June 30, 2021 and Dec. 31, 2020, respectively	93		93
Additional paid in capital	638		605
Retained earnings	382		370
Total common stockholder's equity	1,113		1,068
Total liabilities and equity	$	2,972	$	2,894

See Notes to Consolidated Financial Statements

6

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY (UNAUDITED)

(amounts in millions, except share data; shares in thousands)

	Common Stock Issued					Retained Earnings		Total Common Stockholder's Equity
	Shares	Par Value		Additional Paid In Capital
Three Months Ended June 30, 2021 and 2020
Balance at March 31, 2020	933	$	93	$	547	$	353	$	993
Net income						12		12
Common dividends declared to parent						(20)		(20)
Contribution of capital by parent				30				30
Balance at June 30, 2020	933	$	93	$	577	$	345	$	1,015
Balance at March 31, 2021	933	$	93	$	635	$	382	$	1,110
Net income						14		14
Common dividends declared to parent						(14)		(14)
Contribution of capital by parent				3				3
Balance at June 30, 2021	933	$	93	$	638	$	382	$	1,113

	Common Stock Issued					Retained Earnings		Total Common Stockholder's Equity
	Shares	Par Value		Additional Paid In Capital
Six Months Ended June 30, 2021 and 2020
Balance at Dec. 31, 2019	933	$	93	$	537	$	336	$	966
Net income						46		46
Common dividends declared to parent						(37)		(37)
Contribution of capital by parent				40				40
Balance at June 30, 2020	933	$	93	$	577	$	345	$	1,015
Balance at Dec. 31, 2020	933	$	93	$	605	$	370	$	1,068
Net income						46		46
Common dividends declared to parent						(34)		(34)
Contribution of capital by parent				33				33
Balance at June 30, 2021	933	$	93	$	638	$	382	$	1,113
See Notes to Consolidated Financial Statements

7

NSP-WISCONSIN AND SUBSIDIARIES

Notes to Consolidated Financial Statements (UNAUDITED)

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of NSP-Wisconsin and its subsidiaries as of June 30, 2021 and Dec. 31, 2020; the results of operations, including the components of net income, changes in stockholder's equity and comprehensive income for the three and six months ended June 30, 2021 and 2020; and its cash flows for the six months ended June 30, 2021 and 2020.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2021 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, 2020 balance sheet information has been derived from the audited 2020 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2020.

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, 2020, filed with the SEC on Feb. 17, 2021. 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.

1. 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, 2020 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.

2. Accounting Pronouncements

Recently Adopted

Credit Losses — In 2016, the FASB issued Financial Instruments - Credit Losses, Topic 326 (ASC Topic 326), which changes how entities account for losses on receivables and certain other assets. The guidance requires use of a current expected credit loss model, which may result in earlier recognition of credit losses than under previous accounting standards.

NSP-Wisconsin implemented the guidance using a modified-retrospective approach, recognizing an immaterial cumulative effect charge (after tax) to retained earnings on Jan 1. 2020. The Jan. 1, 2020 adoption of ASC Topic 326 did not have a significant impact on NSP-Wisconsin’s consolidated financial statements.

3. Selected Balance Sheet Data

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Accounts receivable, net
Accounts receivable	$	68	$	78
Less allowance for bad debts	(7)		(8)
Accounts receivable, net	$	61	$	70

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Inventories
Materials and supplies	$	7	$	7
Fuel	5		4
Natural gas	3		4
Total inventories	$	15	$	15

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Property, plant and equipment, net
Electric plant	$	3,253	$	3,197
Natural gas plant	402		391
Common and other property	224		221
Construction work in progress	99		71
Total property, plant and equipment	3,978		3,880
Less accumulated depreciation	(1,437)		(1,396)
Property, plant and equipment, net	$	2,541	$	2,484

4. Borrowings and Other Financing Instruments

Short-Term Borrowings

NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool.

Money Pool — Xcel Energy Inc. and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy Inc.

Money pool borrowings for NSP-Wisconsin:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2021			Year Ended Dec. 31, 2020
Borrowing limit	$	150		$	—
Amount outstanding at period end	33			—
Average amount outstanding	20			—
Maximum amount outstanding	41			—
Weighted average interest rate, computed on a daily basis	0.04		%	N/A
Weighted average interest rate at period end	0.02			N/A

Commercial Paper — Commercial paper outstanding for NSP-Wisconsin:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2021		Year Ended Dec. 31, 2020
Borrowing limit	$	150	$	150
Amount outstanding at period end	—		19
Average amount outstanding	—		30
Maximum amount outstanding	—		95
Weighted average interest rate, computed on a daily basis	N/A		1.59		%
Weighted average interest rate at period end	N/A		0.17

Letters of Credit — NSP-Wisconsin uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At both June 30, 2021 and Dec. 31, 2020, there were no letters of credit outstanding under the credit facility.

8

Revolving Credit Facility — In order to issue its commercial paper, 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 exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

NSP-Wisconsin has the right to request an extension of the revolving credit facility termination date for an additional one-year period. All extension requests are subject to majority bank group approval.

As of June 30, 2021, NSP-Wisconsin had the following committed revolving credit facility available (in millions of dollars):

Credit Facility (a)		Outstanding (b)		Available
$	150	$	—	$	150

(a)Expires in June 2024.

(b)Includes outstanding commercial paper.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the credit facility outstanding at June 30, 2021 and Dec. 31, 2020.

Other Short-Term Borrowings — As of June 30, 2021 and Dec. 31, 2020, Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, had no notes payable to Xcel Energy Inc.

5. Revenues

Revenue is classified by the type of goods/services rendered and market/customer type. NSP-Wisconsin’s operating revenues consisted of the following:

	Three Months Ended June 30, 2021
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	64	$	15	$	79
C&I	108		15		123
Other	2		—		2
Total retail	174		30		204
Interchange	46		—		46
Other	1		1		2
Total revenue from contracts with customers	221		31		252
Alternative revenue and other	3		—		3
Total revenues	$	224	$	31	$	255

	Three Months Ended June 30, 2020
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	60	$	10	$	70
C&I	93		7		100
Other	2		—		2
Total retail	155		17		172
Interchange	41		—		41
Other	—		1		1
Total revenue from contracts with customers	196		18		214
Alternative revenue and other	3		1		4
Total revenues	$	199	$	19	$	218

	Six Months Ended June 30, 2021
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	135	$	46	$	181
C&I	211		39		250
Other	3		—		3
Total retail	349		85		434
Interchange	92		—		92
Other	1		2		3
Total revenue from contracts with customers	442		87		529
Alternative revenue and other	6		1		7
Total revenues	$	448	$	88	$	536

	Six Months Ended June 30, 2020
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	125	$	35	$	160
C&I	194		26		220
Other	3		—		3
Total retail	322		61		383
Interchange	82		—		82
Other	1		2		3
Total revenue from contracts with customers	405		63		468
Alternative revenue and other	6		1		7
Total revenues	$	411	$	64	$	475

6. Income Taxes

Note 7 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2020 represents, in all material respects, the current status of other income tax matters except to the extent noted below, and are incorporated herein by reference.

9

Difference between the statutory rate and ETR:

	Six Months Ended June 30
	2021		2020 (a)
Federal statutory rate	21.0	%	21.0	%
State tax (net of federal tax effect)	6.2		6.2
Increases (decreases) in tax from:
Plant regulatory differences (b)	(5.4)		(18.4)
Amortization of excess nonplant deferred taxes	—		(12.5)
Tax credits, net of NOL & tax credit allowances	(1.3)		(1.7)
Other (net)	0.2		0.9
Effective income tax rate	20.7	%	(4.5)	%

(a)     Prior periods have been restated to conform to current year presentation.

(b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions.

Federal Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows:

Tax Years	Expiration
2014 - 2016	January 2022
2017	September 2021

Additionally, the statute of limitations related to a federal tax loss carryback claim filed in 2020 has been extended. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue; however, the outcome and timing of a resolution is unknown.

State Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of June 30, 2021, NSP-Wisconsin’s earliest open tax year subject to examination by state taxing authorities under applicable statutes of limitations is 2016. In March 2021, Wisconsin began an audit of tax years 2016 - 2019. No material adjustments have been proposed.

Unrecognized Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which deductibility is highly certain, but for which there is uncertainty about the timing. A change in the timing of deductibility would not affect the ETR but would accelerate the payment to the taxing authority.

Unrecognized tax benefits — permanent vs. temporary:

(Millions of Dollars)	June 30, 2021		Dec. 31, 2020
Unrecognized tax benefit — Permanent tax positions	$	2	$	1
Unrecognized tax benefit — Temporary tax positions	1		1
Total unrecognized tax benefit	$	3	$	2

Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:

(Millions of Dollars)	June 30, 2021		Dec. 31, 2020
NOL and tax credit carryforwards	$	(2)	$	(2)

As the IRS audits resume and state audit progresses, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $1 million in the next 12 months.

Payables for interest related to unrecognized tax benefits were not material and no amounts were accrued for penalties related to unrecognized tax benefits as of June 30, 2021 or Dec. 31, 2020.

7. Fair Value of Financial Assets and Liabilities

Fair Value Measurements

Accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires 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.

•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:

Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset value.

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 classification.

When contractual settlements relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable inputs 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 may enter into various instruments that 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. As of June 30, 2021 and Dec. 31, 2020, there were no interest rate derivatives designated as cash flow hedges.

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.

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Consideration of Credit Risk and Concentrations — NSP-Wisconsin continuously monitors the creditworthiness of 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. Impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented on the consolidated balance sheets.

Impact of Derivative Activities on Income — Changes in the fair value of natural gas commodity derivatives resulted in no gains or losses and $1 million in losses for the three and six months ended June 30, 2021, respectively, which were recognized as regulatory assets and liabilities. There were immaterial net losses for the three and six months ended June 30, 2020. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms.

During the three months ended June 30, 2021 and 2020, there were no settlement gains or losses on natural gas commodity derivatives. During the six months ended June 30, 2021 and 2020, there were $1 million of settlement losses, respectively, which were recognized 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 and six months ended June 30, 2021 and 2020, respectively.

Recurring Fair Value Measurements — As of June 30, 2021, there were immaterial derivative assets measured at fair value on a recurring basis. At Dec. 31, 2020, NSP-Wisconsin's derivative assets measured at fair value on a recurring basis were as follows:

	Dec. 31, 2020
	Fair Value						Fair Value Total		Netting (a)		Total (b)
(Millions of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	1	$	—	$	1	$	—	$	1

(a)    NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets 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, 2020. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

(b)    Included in prepayments and other current assets balance of $7 million at Dec. 31, 2020 on the consolidated balance sheets.

Fair Value of Long-Term Debt

Other financial instruments for which the carrying amount did not equal fair value:

	June 30, 2021				Dec. 31, 2020
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	907	$	1,067	$	906	$	1,124

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. Fair value estimates are based on information available to management as of June 30, 2021 and Dec. 31, 2020 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.

8. Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost (Credit)

	Three Months Ended June 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	1	$	1
Interest cost (a)	1		1
Expected return on plan assets (a)	(2)		(2)
Amortization of net loss (a)	1		1
Net periodic benefit cost	$	1	$	1
Effects of regulation	—		2
Net benefit cost recognized for financial reporting	$	1	$	3

	Six Months Ended June 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	3	$	2
Interest cost (a)	2		2
Expected return on plan assets (a)	(4)		(4)
Amortization of net loss (a)	2		3
Net periodic benefit cost	$	3	$	3
Effects of regulation	—		4
Net benefit cost recognized for financial reporting	$	3	$	7

(a)     The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

In January 2021, contributions of $125 million were made across four of Xcel Energy’s pension plans, of which $5 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2021.

9. Commitments and Contingencies

The following includes commitments, contingencies and unresolved contingencies that are material to NSP-Wisconsin’s financial position.

Legal

NSP-Wisconsin is involved in various litigation matters 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 losses 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, would have a material effect on NSP-Wisconsin’s consolidated financial statements. Legal fees are generally expensed as incurred.

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Gas Trading Litigation — 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. Multiple lawsuits involving multiple plaintiffs seeking monetary damages were commenced against e prime and its affiliates, including Xcel Energy, between 2003 and 2009 alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices. Cases were all consolidated in the U.S. District Court in Nevada.

Two cases remain active which include an MDL matter consisting of a Colorado purported class (Breckenridge) and a Wisconsin purported class (Arandell Corp.).

Breckenridge/Colorado — In February 2019, the MDL panel remanded Breckenridge back to the U.S. District Court in Colorado. Settlement of approximately $3 million was reached in February 2021. The parties have sought and are awaiting court approval of the settlement. A hearing was held on July 22, 2021. A decision is anticipated in Q3.

Arandell Corp. — The trial has been vacated and will be rescheduled after the court rules on the pending motions for reconsideration and for class certification. Xcel Energy has concluded that a loss is remote for the remaining lawsuit.

Rate Matters

MISO ROE Complaints — In November 2013 and February 2015, customer groups filed two ROE complaints against MISO TOs, which includes NSP-Minnesota and NSP-Wisconsin. The first complaint requested a reduction in base ROE transmission formula rates from 12.38% to 9.15% for the time period of Nov. 12, 2013 to Feb. 11, 2015, and removal of ROE adders (including those for RTO membership). The second complaint requested, for a subsequent time period, a base ROE reduction from 12.38% to 8.67%.

In September 2016, the FERC issued an order (Opinion No. 551) granting a 10.32% base ROE effective for the first complaint period of Nov. 12, 2013 to Feb. 11, 2015 and subsequent to the date of the order. The D.C Circuit subsequently vacated and remanded Opinion No. 551.

In November 2019, the FERC issued an order (Opinion No. 569), which set the MISO base ROE at 9.88%, effective Sept. 28, 2016 and for the first complaint period. The FERC also dismissed the second complaint. In December 2019, MISO TOs filed a request for rehearing regarding the new ROE methodology announced in Opinion No. 569. Customers also filed requests for rehearing claiming, among other points, that the FERC erred by dismissing the second complaint without refunds.

In May 2020, the FERC issued an order (Opinion No. 569-A) which granted rehearing in part to Opinion 569 and further refined the FERC’s ROE methodology, most significantly to incorporate the risk premium model (in addition to the discounted cash flow and capital asset pricing models), resulting in a new base ROE of 10.02%, effective Sept. 28, 2016 and for the first complaint period. The FERC also affirmed its decision in Opinion No. 569 to dismiss the second complaint.

In November 2020, the FERC issued an order (Opinion No. 569-B) in response to rehearing requests. The FERC corrected certain inputs to its ROE calculation model, did not change the ROE effective Sept. 28, 2016, and for the first MISO complaint period and upheld its decision to deny refunds for the second complaint period. NSP-Minnesota has recognized a liability for its best estimate of final refunds to customers. Each 10 basis point reduction in ROE for the first complaint period, second complaint period, and subsequent period relative to amounts accrued would reduce Xcel Energy’s net income by $1 million, $1 million, and $2 million, respectively.

The MISO TOs and various parties have filed petitions for review of Opinion Nos. 569, 569-A and 569-B at the D.C. Circuit with initial briefs filed in March 2021 and final briefs expected in August 2021.

FERC NOPR on ROE Incentive Adders — In April 2021, the FERC issued a NOPR proposing to limit collection of ROE incentive adders for RTO membership to the first three years after an entity begins participation in an RTO. If adopted as a final rule, following a comment period expected to be complete by the end of 2021 or 2022, NSP-Wisconsin would prospectively discontinue charging their current 0.5% ROE incentive adders. Amounts related to a discontinuance of the adder would ultimately be offset by an increase in retail rates, following future rate cases.

Environmental

MGP, Landfill and Disposal Sites

NSP-Wisconsin is currently investigating, remediating or performing post-closure actions at two MGP, landfill or other disposal sites across its service territories.

NSP-Wisconsin has recognized its best estimate of costs/liabilities that will result from final resolution of these issues, however, the outcome and timing is unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.

10. Segment Information

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 — The regulated electric utility segment generates electricity, which is transmitted and distributed in Wisconsin and Michigan.

•Regulated Natural Gas — The regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan.

Asset and capital expenditure information is not provided for NSP-Wisconsin's reportable segments. As an integrated electric and natural gas utility, NSP-Wisconsin 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.

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NSP-Wisconsin's segment information:

	Three Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues (a)	$	224	$	199
Net income	16		16
Regulated Natural Gas
Total revenues	$	31	$	19
Net loss	(2)		(3)
All Other
Total revenues	$	—	$	—
Net loss	—		(1)
Consolidated Total
Total revenues (a)	$	255	$	218
Net income	14		12

(a)    Total revenues include $46 million and $41 million of affiliate electric revenue for the three months ended June 30, 2021 and 2020, respectively.

	Six Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues (a)	$	448	$	411
Net income	40		41
Regulated Natural Gas
Total revenues	$	88	$	64
Net income	6		6
All Other
Total revenues	$	—	$	—
Net loss	—		(1)
Consolidated Total
Total revenues (a)	$	536	$	475
Net income	46		46

(a)    Total revenues include $92 million and $82 million of affiliate electric revenue for the six months ended June 30, 2021 and 2020, respectively.

ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Discussion of financial condition and liquidity for NSP-Wisconsin is omitted per conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q for wholly owned subsidiaries. It is replaced with management’s narrative analysis of the results of operations set forth in General Instruction H(2)(a) of Form 10-Q for wholly owned subsidiaries (reduced disclosure format).

Non-GAAP Financial Measures

The following discussion includes financial information prepared in accordance with GAAP, as well as certain non-GAAP financial measures such as electric margin and natural gas margin. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are adjusted from measures calculated and presented in accordance with GAAP.

NSP-Wisconsin’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.

Electric and Natural Gas Margins

Electric margin is presented as electric revenues less electric fuel and purchased power expenses. Natural gas margin is presented as natural gas revenues less the cost of natural gas sold and transported. Expenses incurred for electric fuel and purchased power and the cost of natural gas are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues.

Management believes electric and natural gas margins provide the most meaningful basis for evaluating our operations because they exclude the revenue impact of fluctuations in these expenses. These margins can be reconciled to operating income, a GAAP measure, by including other operating revenues, O&M expenses, conservation, depreciation and amortization and taxes (other than income taxes).

Results of Operations

NSP-Wisconsin’s year-to-date net income was flat compared with the same period in 2020 ($46 million for both the six months ended June 30, 2021 and 2020).

Electric Margin

Electric production expenses tend to vary with the quantity of electricity sold and changes in the unit costs of fuel and purchased power. The electric fuel and purchased power cost recovery mechanism of the Wisconsin jurisdiction may not allow for complete recovery of all expenses and, therefore, changes in fuel or purchased power costs can impact earnings.

Electric revenues and margin:

	Six Months Ended June 30
(Millions of Dollars)	2021		2020
Electric revenues	$	448	$	411
Electric fuel and purchased power	(216)		(192)
Electric margin	$	232	$	219

Changes in electric margin:

(Millions of Dollars)	Six Months Ended June 30, 2021 vs. 2020
Regulatory rate outcomes	$	12
Estimated impact of weather	4
Sales and demand (a)	4
Interchange agreement billings with NSP-Minnesota	(6)
Other (net)	(1)
Total increase in electric margin	$	13

(a) Sales decline excludes weather impact.

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Natural Gas Margin

Total natural gas expense varies with changing sales requirements and the cost of natural gas. However, fluctuations in the cost of natural gas have minimal impact on natural gas margin due to natural gas cost recovery mechanisms.

Natural gas revenues and margin:

	Six Months Ended June 30
(Millions of Dollars)	2021		2020
Natural gas revenues	$	88	$	64
Cost of natural gas sold and transported	(51)		(28)
Natural gas margin	$	37	$	36

Changes in natural gas margin:

(Millions of Dollars)	Six Months Ended June 30, 2021 vs. 2020
Sales growth	1
Total increase in natural gas margin	$	1

Non-Fuel Operating Expenses and Other Items

Depreciation and Amortization — Depreciation and amortization expense decreased $4 million, or 5.2%, year-to-date. The decrease is due to lower amortization of environmental regulatory assets, partially offset by normal system expansion and deferred tax liability amortization.

Income Taxes — Income tax expense increased $14 million for the first six months of 2021. The increase was primarily driven by a decrease in plant regulatory differences, lower non-plant accumulated deferred income tax amortization and higher pretax earnings in 2021.

See Note 6 to the consolidated financial statements for further information.

Other

Winter Storm Uri

In February 2021, the central portion of the United States experienced a major winter storm (Winter Storm Uri). Extreme cold temperatures impacted certain operational assets as well as the availability of renewable generation across the region. The cold weather also affected the country’s supply and demand for natural gas. These factors contributed to extremely high market prices for natural gas and electricity.

As a result of the extremely high market prices, NSP-Wisconsin incurred net natural gas, fuel and purchased energy costs of approximately $45 million (largely deferred as regulatory assets) in the first quarter. Certain energy transactions are subject to final/settlement calculation adjustments, including the impacts of credit losses shared among market participants. Such adjustments are not expected to be material to our results of operations, financial condition or cash flows.

Regulatory Overview — NSP-Wisconsin has natural gas, fuel and purchased energy mechanisms in each jurisdiction for recovering incurred costs. However, February cost increases were deferred for future recovery with recovery proposed over a period of up to ten months to mitigate the impact to customer bills. Additionally, NSP-Wisconsin is not requesting recovery of financing costs in order to further limit the impact to our customers.

Proceedings initiated:

Jurisdiction	Regulatory Status
Wisconsin	In March, the PSCW approved NSP-Wisconsin's proposal to recover $45 million of natural gas costs incurred during Storm Uri over nine months through December 2021 with no financing charge.
Michigan	In May, the Michigan Public Service Commission approved recovery of $2 million in natural gas costs over 10 months with no financing charge.

Supply Chain and Capital Expenditures

NSP-Wisconsin’s ability to meet customer energy requirements, respond to storm-related disruptions and execute our capital expenditure program are dependent on maintaining an efficient supply chain. Overall, as a result of COVID-19, manufacturing processes have experienced disruptions related to scarcity of raw materials and interruptions in production and shipping. These disruptions have been further exacerbated by inflationary pressures, storms and labor shortages. The Company continues to monitor the availability of materials and seek alternative suppliers as necessary.

Public Utility Regulation

The FERC and various state and local regulatory commissions regulate NSP-Wisconsin. The electric and natural gas rates charged to customers of NSP-Wisconsin are approved by the FERC or the regulatory commissions in the states in which it operates.

Rates are designed to recover plant investment, operating costs and an allowed return on investment. NSP-Wisconsin requests changes in utility rates through commission filings.

Changes in operating costs can affect NSP-Wisconsin’s financial results, depending on the timing of rate case filings and implementation of final rates. Other factors affecting rate filings are new investments, sales, conservation and demand side management efforts, and the cost of capital. In addition, the regulatory commissions authorize the ROE, capital structure and depreciation rates in rate proceedings. Decisions by these regulators can significantly impact NSP-Wisconsin’s results of operations.

Except to the extent noted below, the circumstances set forth in Public Utility Regulation included in Item 7 of NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2020 and in Item 2 of NSP-Wisconsin's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 appropriately represent, in all material respects, the current status of public utility regulation and are incorporated herein by reference.

NSP-Wisconsin Solar Proposal — In June 2021, the PSCW approved NSP-Wisconsin’s request to purchase the 74 MW Western Mustang build-own-transfer solar facility for approximately $100 million. The project is scheduled to go into service in 2023.

NSP-Wisconsin Electric and Natural Gas Settlement — In July 2021, NSP-Wisconsin filed an application with the PSCW seeking approval of a rate case settlement with various intervenors for 2022-2023.

The settlement agreement increases electric rates by $35 million (4.9%) for 2022 and an incremental $18 million increase (2.5%) for 2023. For the natural gas utility, rates increase by $10 million (8.4%) for 2022 and an incremental $3 million (2.3%) increase for 2023.

Key elements of the settlement include:

•ROE of 9.80% for 2022 and 10.00% for 2023.

•Equity ratio of 52.5% for both 2022 and 2023.

•Returning $9 million in various net regulatory liabilities to offset customer impacts in 2023.

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•Deferring certain pension and other post-employment benefit expense in 2021 through 2023.

•Addressing COVID-19 deferral recovery in the next rate case proceeding.

•Deferring potential changes in tax expenses due to changes in federal or state tax law in 2021 through 2023.

•Incorporating an earnings sharing mechanism for 2022 and 2023.

A PSCW decision is anticipated in the fourth quarter of 2021.

Environmental

Affordable Clean Energy

In July 2019, the EPA adopted the Affordable Clean Energy rule, which requires states to develop plans by 2022 for greenhouse gas reductions from coal-fired power plants. In January 2021, the U.S. Court of Appeals for the D.C. Circuit issued a decision vacating and remanding the Affordable Clean Energy rule. That decision, if not successfully appealed or reconsidered, would allow the EPA to proceed with alternate regulation of coal-fired power plants. If the new rules require additional investment, NSP-Wisconsin believes, based on prior state commission practices, that the cost of these initiatives or replacement generation would be recoverable through rates.

Emerging Regulation

New regulations and legislation are being considered to regulate PFAS in drinking water, water discharges, commercial products, wastes, and other areas. PFAS are man-made chemicals found in many consumer products that can persist and accumulate in the environment. These chemicals have received heightened attention by environmental regulators. Increased regulation of PFAS and other emerging contaminants at the federal, state, and local level could have a potential adverse effect on our operations but at this time, it is uncertain what impact, if any, there will be on our results of operations, financial condition or cash flows. NSP-Wisconsin will continue to monitor these regulatory developments and their potential impact on its operations

ITEM 4 — CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

NSP-Wisconsin maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.

In addition, the disclosure controls and procedures ensure that information required to be disclosed is accumulated and communicated to management, including the CEO and CFO, allowing timely decisions regarding required disclosure.

As of June 30, 2021, based on an evaluation carried out under the supervision and with the participation of NSP-Wisconsin’s management, including the CEO and CFO, of the effectiveness of its disclosure controls and procedures, the CEO and CFO have concluded that NSP-Wisconsin’s disclosure controls and procedures were effective.

Internal Control Over Financial Reporting

No changes in NSP-Wisconsin’s internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, NSP-Wisconsin’s internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1 — LEGAL PROCEEDINGS

NSP-Wisconsin is involved in various litigation matters 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 losses 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, would have a material effect on NSP-Wisconsin’s consolidated financial statements. Legal fees are generally expensed as incurred.

See Note 9 to the consolidated financial statements and Part I Item 2 for further information.

ITEM 1A — RISK FACTORS

NSP-Wisconsin's risk factors are documented in Item 1A of Part I of its Annual Report on Form 10-K for the year ended Dec. 31, 2020, which is incorporated herein by reference. There have been no material changes from the risk factors previously disclosed in the Form 10-K.

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ITEM 6 — EXHIBITS

* Indicates incorporation by reference

Exhibit Number	Description	Report or Registration Statement	Exhibit Reference
3.01*	Amended and Restated Articles of Incorporation of NSP-Wisconsin, dated May 28, 1998	NSP-Wisconsin Form S-4 dated Jan. 21, 2004	3.01
3.02*	Amended and Restated Bylaws of NSP-Wisconsin, dated Jan. 25, 2019	NSP-Wisconsin Form 10-K for the year ended Dec. 31, 2018	3.02
31.01	Principal Executive Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02	Principal Financial Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Schema
101.CAL	Inline XBRL Calculation
101.DEF	Inline XBRL Definition
101.LAB	Inline XBRL Label
101.PRE	Inline XBRL Presentation
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Northern States Power Company (a Wisconsin corporation)
July 29, 2021	By:	/s/ JEFFREY S. SAVAGE
		Jeffrey S. Savage
		Senior Vice President, Controller
		(Principal Accounting Officer)
		/s/ BRIAN J. VAN ABEL
		Brian J. Van Abel
		Executive Vice President, Chief Financial Officer and Director
		(Principal Financial Officer)

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EX-31.01

Exhibit 31.01

CERTIFICATION

I, Ben Fowke, certify that:

1.I have reviewed this report on Form 10-Q of Northern States Power Company (a Wisconsin corporation);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 29, 2021

/s/ BEN FOWKE

Ben Fowke

Chairman, Chief Executive Officer and Director

(Principal Executive Officer)

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EX-31.02

Exhibit 31.02

CERTIFICATION

I, Brian J. Van Abel, certify that:

1.I have reviewed this report on Form 10-Q of Northern States Power Company (a Wisconsin corporation);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 29, 2021

/s/ BRIAN J. VAN ABEL

Brian J. Van Abel

Executive Vice President, Chief Financial Officer and Director

(Principal Financial Officer)

2

EX-32.01

Exhibit 32.01

OFFICER CERTIFICATION

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Northern States Power Company, a Wisconsin Corporation (NSP-Wisconsin) on Form 10-Q for the quarter ended June 30, 2021, as filed with the SEC on the date hereof (Form 10-Q), each of the undersigned officers of NSP-Wisconsin certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

(1)The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NSP-Wisconsin as of the dates and for the periods expressed in the Form 10-Q.

Date: July 29, 2021

/s/ BEN FOWKE

Ben Fowke

Chairman, Chief Executive Officer and Director

(Principal Executive Officer)

/s/ BRIAN J. VAN ABEL

Brian J. Van Abel

Executive Vice President, Chief Financial Officer and Director

(Principal Financial Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to NSP-Wisconsin and will be retained by NSP-Wisconsin and furnished to the SEC or its staff upon request.

1

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Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 29, 2021
Cover [Abstract]
Entity Registrant Name	NORTHERN STATES POWER CO /WI/
Entity Central Index Key	0000072909
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-03140
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-0508315
Entity Address, Address Line One	1414 West Hamilton Avenue
Entity Address, City or Town	Eau Claire
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	54701
City Area Code	(715)
Local Phone Number	737-2625
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		933,000

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating revenues
Electric, non-affiliates	$ 178	$ 158	$ 356	$ 329
Electric, affiliates	46	41	92	82
Natural gas	31	19	88	64
Total operating revenues	255	218	536	475
Operating expenses
Electric fuel and purchased power, non-affiliates	5	3	10	6
Purchased power, affiliates	106	91	206	186
Cost of natural sold and transported	20	7	51	28
Operating and maintenance expenses	50	45	99	94
Conservation program expenses	3	3	6	6
Depreciation and amortization	36	39	73	77
Taxes (other than income taxes)	8	7	15	14
Total operating expenses	228	195	460	411
Operating income	27	23	76	64
Other expense, net	0	(2)	0	(4)
Allowance for funds used during construction — equity	1	1	2	3
Interest charges and financing costs
Interest charges	12	10	21	20
Allowance for funds used during construction — debt	(1)	(1)	(1)	(1)
Total interest charges and financing costs	11	9	20	19
Income before income taxes	17	13	58	44
Income tax expense (benefit)	3	1	12	(2)
Net income	$ 14	$ 12	$ 46	$ 46

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities
Net income	$ 46	$ 46
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	73	78
Deferred income taxes	10	(15)
Allowance for equity funds used during construction	(2)	(3)
Provision for bad debts	2	3
Changes in operating assets and liabilities:
Accounts receivable	10	(4)
Accrued unbilled revenues	5	10
Inventories	(1)	0
Other current assets	(6)	0
Accounts payable	9	(3)
Net regulatory assets and liabilities	(47)	5
Other current liabilities	(2)	(2)
Pension and other employee benefit obligations	(5)	(7)
Other, net	2	0
Net cash provided by operating activities	94	108
Investing activities
Capital/construction expenditures	(111)	(121)
Net cash used in investing activities	(111)	(121)
Financing activities
Proceeds from short-term borrowings, net	(19)	(65)
Borrowings under utility money pool arrangement	186	0
Repayments under utility money pool arrangement	(153)	0
Proceeds from long-term debt	0	98
Capital contributions from parent	40	37
Dividends paid to parent	(38)	(32)
Other, net	1	0
Net cash provided by financing activities	17	38
Net change in cash, cash equivalents and restricted cash	0	25
Cash, cash equivalents and restricted cash at beginning of period	2	1
Cash, cash equivalents and restricted cash at end of period	2	26
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	(19)	(18)
Cash paid for income taxes, net	(13)	(13)
Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additions	19	18
Inventory transfers to property, plant and equipment	2	2
Allowance for equity funds used during construction	$ 2	$ 3

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 2	$ 2
Accounts receivable, net	61	70
Accrued unbilled revenues	48	53
Other Receivables	2	1
Inventories	15	15
Regulatory assets	47	19
Prepaid taxes	30	24
Prepayments and other	5	7
Total current assets	210	191
Property, Plant and Equipment, Net [Abstract]
Property, plant and equipment, net	2,541	2,484
Other assets
Regulatory assets	216	215
Other Investments	3	3
Other	2	1
Total other assets	221	219
Total assets	2,972	2,894
Current liabilities
Current portion of long-term debt	19	19
Short-term debt	0	19
Borrowings under utility money pool arrangement	33	0
Accounts payable	47	41
Accounts payable to affiliates	29	15
Dividends payable to parent	15	19
Regulatory liabilities	7	31
Taxes accrued	8	12
Environmental liabilities	4	4
Accrued interest	10	10
Other	17	15
Total current liabilities	189	185
Deferred credits and other liabilities
Deferred income taxes	321	307
Deferred investment tax credits	6	0
Regulatory liabilities	369	350
Environmental liabilities	15	16
Customer advances	21	20
Pension and employee benefit obligations	23	28
Other	27	33
Total deferred credits and other liabilities	782	754
Commitments and contingencies
Capitalization
Long-term debt	888	887
Common Stock - 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Sept. 30, 2020 and Dec. 31, 2019, respectively	$ 93	$ 93
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
Additional paid in capital	$ 638	$ 605
Retained earnings	382	370
Total common stockholder's equity	1,113	1,068
Total liabilities and equity	$ 2,972	$ 2,894

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CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY - USD ($) $ in Millions	Total	Common stock	Additional Paid In Capital	Retained Earnings
Balance (in shares) at Dec. 31, 2019		933,000
Beginning Balance at Dec. 31, 2019	$ 966	$ 93	$ 537	$ 336
Increase (Decrease) in Stockholder's Equity
Net income	46
Common dividends declared to parent	(37)			(37)
Contribution of capital by parent	40		40
Balance (in shares) at Jun. 30, 2020		933,000
Ending Balance at Jun. 30, 2020	1,015	$ 93	577	345
Balance (in shares) at Mar. 31, 2020		933,000
Beginning Balance at Mar. 31, 2020	993	$ 93	547	353
Increase (Decrease) in Stockholder's Equity
Net income	12			12
Common dividends declared to parent	(20)			(20)
Contribution of capital by parent	30		30
Balance (in shares) at Jun. 30, 2020		933,000
Ending Balance at Jun. 30, 2020	$ 1,015	$ 93	577	345
Balance (in shares) at Dec. 31, 2020	933,000	933,000
Beginning Balance at Dec. 31, 2020	$ 1,068	$ 93	605	370
Increase (Decrease) in Stockholder's Equity
Net income	46
Common dividends declared to parent	(34)			(34)
Contribution of capital by parent	$ 33		33
Balance (in shares) at Jun. 30, 2021	933,000	933,000
Ending Balance at Jun. 30, 2021	$ 1,113	$ 93	638	382
Balance (in shares) at Mar. 31, 2021		933,000
Beginning Balance at Mar. 31, 2021	1,110	$ 93	635	382
Increase (Decrease) in Stockholder's Equity
Net income	14			14
Common dividends declared to parent	(14)			(14)
Contribution of capital by parent	$ 3		3
Balance (in shares) at Jun. 30, 2021	933,000	933,000
Ending Balance at Jun. 30, 2021	$ 1,113	$ 93	$ 638	$ 382

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Management's Opinion

6 Months Ended

Jun. 30, 2021

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 GAAP, the financial position of NSP-Wisconsin and its subsidiaries as of June 30, 2021 and Dec. 31, 2020; the results of operations, including the components of net income, changes in stockholder's equity and comprehensive income for the three and six months ended June 30, 2021 and 2020; and its cash flows for the six months ended June 30, 2021 and 2020.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2021 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, 2020 balance sheet information has been derived from the audited 2020 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2020.

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, 2020, filed with the SEC on Feb. 17, 2021. 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.

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Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
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, 2020 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.

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Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Accounting Standards Update and Change in Accounting Principle [Abstract]

Accounting Pronouncements

Recently Adopted

Credit Losses — In 2016, the FASB issued Financial Instruments - Credit Losses, Topic 326 (ASC Topic 326), which changes how entities account for losses on receivables and certain other assets. The guidance requires use of a current expected credit loss model, which may result in earlier recognition of credit losses than under previous accounting standards.

NSP-Wisconsin implemented the guidance using a modified-retrospective approach, recognizing an immaterial cumulative effect charge (after tax) to retained earnings on Jan 1. 2020. The Jan. 1, 2020 adoption of ASC Topic 326 did not have a significant impact on NSP-Wisconsin’s consolidated financial statements.

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Selected Balance Sheet Data

6 Months Ended

Jun. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Selected Balance Sheet Data

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Accounts receivable, net
Accounts receivable	$	68	$	78
Less allowance for bad debts	(7)		(8)
Accounts receivable, net	$	61	$	70

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Inventories
Materials and supplies	$	7	$	7
Fuel	5		4
Natural gas	3		4
Total inventories	$	15	$	15

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Property, plant and equipment, net
Electric plant	$	3,253	$	3,197
Natural gas plant	402		391
Common and other property	224		221
Construction work in progress	99		71
Total property, plant and equipment	3,978		3,880
Less accumulated depreciation	(1,437)		(1,396)
Property, plant and equipment, net	$	2,541	$	2,484

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Borrowings and Other Financing Instruments

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Borrowings and Other Financing Instruments

Short-Term Borrowings

NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool.

Money Pool — Xcel Energy Inc. and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy Inc.

Money pool borrowings for NSP-Wisconsin:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2021			Year Ended Dec. 31, 2020
Borrowing limit	$	150		$	—
Amount outstanding at period end	33			—
Average amount outstanding	20			—
Maximum amount outstanding	41			—
Weighted average interest rate, computed on a daily basis	0.04		%	N/A
Weighted average interest rate at period end	0.02			N/A

Commercial Paper — Commercial paper outstanding for NSP-Wisconsin:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2021		Year Ended Dec. 31, 2020
Borrowing limit	$	150	$	150
Amount outstanding at period end	—		19
Average amount outstanding	—		30
Maximum amount outstanding	—		95
Weighted average interest rate, computed on a daily basis	N/A		1.59		%
Weighted average interest rate at period end	N/A		0.17

Letters of Credit — NSP-Wisconsin uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At both June 30, 2021 and Dec. 31, 2020, there were no letters of credit outstanding under the credit facility.

Revolving Credit Facility — In order to issue its commercial paper, 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 exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

NSP-Wisconsin has the right to request an extension of the revolving credit facility termination date for an additional one-year period. All extension requests are subject to majority bank group approval.

As of June 30, 2021, NSP-Wisconsin had the following committed revolving credit facility available (in millions of dollars):

Credit Facility (a)		Outstanding (b)		Available
$	150	$	—	$	150

(a)Expires in June 2024.

(b)Includes outstanding commercial paper.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the credit facility outstanding at June 30, 2021 and Dec. 31, 2020.

Other Short-Term Borrowings — As of June 30, 2021 and Dec. 31, 2020, Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, had no notes payable to Xcel Energy Inc.

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Revenues

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues

Revenue is classified by the type of goods/services rendered and market/customer type. NSP-Wisconsin’s operating revenues consisted of the following:

	Three Months Ended June 30, 2021
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	64	$	15	$	79
C&I	108		15		123
Other	2		—		2
Total retail	174		30		204
Interchange	46		—		46
Other	1		1		2
Total revenue from contracts with customers	221		31		252
Alternative revenue and other	3		—		3
Total revenues	$	224	$	31	$	255

	Three Months Ended June 30, 2020
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	60	$	10	$	70
C&I	93		7		100
Other	2		—		2
Total retail	155		17		172
Interchange	41		—		41
Other	—		1		1
Total revenue from contracts with customers	196		18		214
Alternative revenue and other	3		1		4
Total revenues	$	199	$	19	$	218

	Six Months Ended June 30, 2021
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	135	$	46	$	181
C&I	211		39		250
Other	3		—		3
Total retail	349		85		434
Interchange	92		—		92
Other	1		2		3
Total revenue from contracts with customers	442		87		529
Alternative revenue and other	6		1		7
Total revenues	$	448	$	88	$	536

	Six Months Ended June 30, 2020
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	125	$	35	$	160
C&I	194		26		220
Other	3		—		3
Total retail	322		61		383
Interchange	82		—		82
Other	1		2		3
Total revenue from contracts with customers	405		63		468
Alternative revenue and other	6		1		7
Total revenues	$	411	$	64	$	475

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

Note 7 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2020 represents, in all material respects, the current status of other income tax matters except to the extent noted below, and are incorporated herein by reference.

Difference between the statutory rate and ETR:

	Six Months Ended June 30
	2021		2020 (a)
Federal statutory rate	21.0	%	21.0	%
State tax (net of federal tax effect)	6.2		6.2
Increases (decreases) in tax from:
Plant regulatory differences (b)	(5.4)		(18.4)
Amortization of excess nonplant deferred taxes	—		(12.5)
Tax credits, net of NOL & tax credit allowances	(1.3)		(1.7)
Other (net)	0.2		0.9
Effective income tax rate	20.7	%	(4.5)	%

(a)     Prior periods have been restated to conform to current year presentation.

(b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions.

Federal Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows:

Tax Years	Expiration
2014 - 2016	January 2022
2017	September 2021

Additionally, the statute of limitations related to a federal tax loss carryback claim filed in 2020 has been extended. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue; however, the outcome and timing of a resolution is unknown.

State Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of June 30, 2021, NSP-Wisconsin’s earliest open tax year subject to examination by state taxing authorities under applicable statutes of limitations is 2016. In March 2021, Wisconsin began an audit of tax years 2016 - 2019. No material adjustments have been proposed.

Unrecognized Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which deductibility is highly certain, but for which there is uncertainty about the timing. A change in the timing of deductibility would not affect the ETR but would accelerate the payment to the taxing authority.

Unrecognized tax benefits — permanent vs. temporary:

(Millions of Dollars)	June 30, 2021		Dec. 31, 2020
Unrecognized tax benefit — Permanent tax positions	$	2	$	1
Unrecognized tax benefit — Temporary tax positions	1		1
Total unrecognized tax benefit	$	3	$	2

Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:

(Millions of Dollars)	June 30, 2021		Dec. 31, 2020
NOL and tax credit carryforwards	$	(2)	$	(2)

As the IRS audits resume and state audit progresses, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $1 million in the next 12 months.

Payables for interest related to unrecognized tax benefits were not material and no amounts were accrued for penalties related to unrecognized tax benefits as of June 30, 2021 or Dec. 31, 2020.

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Fair Value of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

7. Fair Value of Financial Assets and Liabilities

Fair Value Measurements

Accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires 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.

•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:

Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset value.

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 classification.

When contractual settlements relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable inputs 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 may enter into various instruments that 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. As of June 30, 2021 and Dec. 31, 2020, there were no interest rate derivatives designated as cash flow hedges.

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.

Consideration of Credit Risk and Concentrations — NSP-Wisconsin continuously monitors the creditworthiness of 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. Impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented on the consolidated balance sheets.

Impact of Derivative Activities on Income — Changes in the fair value of natural gas commodity derivatives resulted in no gains or losses and $1 million in losses for the three and six months ended June 30, 2021, respectively, which were recognized as regulatory assets and liabilities. There were immaterial net losses for the three and six months ended June 30, 2020. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms.

During the three months ended June 30, 2021 and 2020, there were no settlement gains or losses on natural gas commodity derivatives. During the six months ended June 30, 2021 and 2020, there were $1 million of settlement losses, respectively, which were recognized 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 and six months ended June 30, 2021 and 2020, respectively.

Recurring Fair Value Measurements — As of June 30, 2021, there were immaterial derivative assets measured at fair value on a recurring basis. At Dec. 31, 2020, NSP-Wisconsin's derivative assets measured at fair value on a recurring basis were as follows:

	Dec. 31, 2020
	Fair Value						Fair Value Total		Netting (a)		Total (b)
(Millions of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	1	$	—	$	1	$	—	$	1

(a)    NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets 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, 2020. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

(b)    Included in prepayments and other current assets balance of $7 million at Dec. 31, 2020 on the consolidated balance sheets.

Fair Value of Long-Term Debt

Other financial instruments for which the carrying amount did not equal fair value:

	June 30, 2021				Dec. 31, 2020
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	907	$	1,067	$	906	$	1,124

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. Fair value estimates are based on information available to management as of June 30, 2021 and Dec. 31, 2020 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.

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Benefit Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost (Credit)

	Three Months Ended June 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	1	$	1
Interest cost (a)	1		1
Expected return on plan assets (a)	(2)		(2)
Amortization of net loss (a)	1		1
Net periodic benefit cost	$	1	$	1
Effects of regulation	—		2
Net benefit cost recognized for financial reporting	$	1	$	3

	Six Months Ended June 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	3	$	2
Interest cost (a)	2		2
Expected return on plan assets (a)	(4)		(4)
Amortization of net loss (a)	2		3
Net periodic benefit cost	$	3	$	3
Effects of regulation	—		4
Net benefit cost recognized for financial reporting	$	3	$	7

(a)     The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

In January 2021, contributions of $125 million were made across four of Xcel Energy’s pension plans, of which $5 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2021.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The following includes commitments, contingencies and unresolved contingencies that are material to NSP-Wisconsin’s financial position.

Legal

NSP-Wisconsin is involved in various litigation matters 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 losses 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, would have a material effect on NSP-Wisconsin’s consolidated financial statements. Legal fees are generally expensed as incurred.

Gas Trading Litigation — 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. Multiple lawsuits involving multiple plaintiffs seeking monetary damages were commenced against e prime and its affiliates, including Xcel Energy, between 2003 and 2009 alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices. Cases were all consolidated in the U.S. District Court in Nevada.

Two cases remain active which include an MDL matter consisting of a Colorado purported class (Breckenridge) and a Wisconsin purported class (Arandell Corp.).

Breckenridge/Colorado — In February 2019, the MDL panel remanded Breckenridge back to the U.S. District Court in Colorado. Settlement of approximately $3 million was reached in February 2021. The parties have sought and are awaiting court approval of the settlement. A hearing was held on July 22, 2021. A decision is anticipated in Q3.

Arandell Corp. — The trial has been vacated and will be rescheduled after the court rules on the pending motions for reconsideration and for class certification. Xcel Energy has concluded that a loss is remote for the remaining lawsuit.

Rate Matters

MISO ROE Complaints — In November 2013 and February 2015, customer groups filed two ROE complaints against MISO TOs, which includes NSP-Minnesota and NSP-Wisconsin. The first complaint requested a reduction in base ROE transmission formula rates from 12.38% to 9.15% for the time period of Nov. 12, 2013 to Feb. 11, 2015, and removal of ROE adders (including those for RTO membership). The second complaint requested, for a subsequent time period, a base ROE reduction from 12.38% to 8.67%.

In September 2016, the FERC issued an order (Opinion No. 551) granting a 10.32% base ROE effective for the first complaint period of Nov. 12, 2013 to Feb. 11, 2015 and subsequent to the date of the order. The D.C Circuit subsequently vacated and remanded Opinion No. 551.

In November 2019, the FERC issued an order (Opinion No. 569), which set the MISO base ROE at 9.88%, effective Sept. 28, 2016 and for the first complaint period. The FERC also dismissed the second complaint. In December 2019, MISO TOs filed a request for rehearing regarding the new ROE methodology announced in Opinion No. 569. Customers also filed requests for rehearing claiming, among other points, that the FERC erred by dismissing the second complaint without refunds.

In May 2020, the FERC issued an order (Opinion No. 569-A) which granted rehearing in part to Opinion 569 and further refined the FERC’s ROE methodology, most significantly to incorporate the risk premium model (in addition to the discounted cash flow and capital asset pricing models), resulting in a new base ROE of 10.02%, effective Sept. 28, 2016 and for the first complaint period. The FERC also affirmed its decision in Opinion No. 569 to dismiss the second complaint.

In November 2020, the FERC issued an order (Opinion No. 569-B) in response to rehearing requests. The FERC corrected certain inputs to its ROE calculation model, did not change the ROE effective Sept. 28, 2016, and for the first MISO complaint period and upheld its decision to deny refunds for the second complaint period. NSP-Minnesota has recognized a liability for its best estimate of final refunds to customers. Each 10 basis point reduction in ROE for the first complaint period, second complaint period, and subsequent period relative to amounts accrued would reduce Xcel Energy’s net income by $1 million, $1 million, and $2 million, respectively.

The MISO TOs and various parties have filed petitions for review of Opinion Nos. 569, 569-A and 569-B at the D.C. Circuit with initial briefs filed in March 2021 and final briefs expected in August 2021.

FERC NOPR on ROE Incentive Adders — In April 2021, the FERC issued a NOPR proposing to limit collection of ROE incentive adders for RTO membership to the first three years after an entity begins participation in an RTO. If adopted as a final rule, following a comment period expected to be complete by the end of 2021 or 2022, NSP-Wisconsin would prospectively discontinue charging their current 0.5% ROE incentive adders. Amounts related to a discontinuance of the adder would ultimately be offset by an increase in retail rates, following future rate cases.

Environmental

MGP, Landfill and Disposal Sites

NSP-Wisconsin is currently investigating, remediating or performing post-closure actions at two MGP, landfill or other disposal sites across its service territories.

NSP-Wisconsin has recognized its best estimate of costs/liabilities that will result from final resolution of these issues, however, the outcome and timing is unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

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 — The regulated electric utility segment generates electricity, which is transmitted and distributed in Wisconsin and Michigan.

•Regulated Natural Gas — The regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan.

Asset and capital expenditure information is not provided for NSP-Wisconsin's reportable segments. As an integrated electric and natural gas utility, NSP-Wisconsin 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-Wisconsin's segment information:

	Three Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues (a)	$	224	$	199
Net income	16		16
Regulated Natural Gas
Total revenues	$	31	$	19
Net loss	(2)		(3)
All Other
Total revenues	$	—	$	—
Net loss	—		(1)
Consolidated Total
Total revenues (a)	$	255	$	218
Net income	14		12

(a)    Total revenues include $46 million and $41 million of affiliate electric revenue for the three months ended June 30, 2021 and 2020, respectively.

	Six Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues (a)	$	448	$	411
Net income	40		41
Regulated Natural Gas
Total revenues	$	88	$	64
Net income	6		6
All Other
Total revenues	$	—	$	—
Net loss	—		(1)
Consolidated Total
Total revenues (a)	$	536	$	475
Net income	46		46

(a)    Total revenues include $92 million and $82 million of affiliate electric revenue for the six months ended June 30, 2021 and 2020, respectively

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Selected Balance Sheet Data (Tables)

6 Months Ended

Jun. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Accounts receivable, net
Accounts receivable	$	68	$	78
Less allowance for bad debts	(7)		(8)
Accounts receivable, net	$	61	$	70

Inventories

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Inventories
Materials and supplies	$	7	$	7
Fuel	5		4
Natural gas	3		4
Total inventories	$	15	$	15

Property, Plant and Equipment, Net

(Millions of dollars)	June 30, 2021		Dec. 31, 2020
Property, plant and equipment, net
Electric plant	$	3,253	$	3,197
Natural gas plant	402		391
Common and other property	224		221
Construction work in progress	99		71
Total property, plant and equipment	3,978		3,880
Less accumulated depreciation	(1,437)		(1,396)
Property, plant and equipment, net	$	2,541	$	2,484

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Borrowings and Other Financing Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Borrowings and Other Financing Instruments [Abstract]

Credit Facilities

As of June 30, 2021, NSP-Wisconsin had the following committed revolving credit facility available (in millions of dollars):

Credit Facility (a)		Outstanding (b)		Available
$	150	$	—	$	150

(a)Expires in June 2024.

(b)Includes outstanding commercial paper.

Money Pool

Borrowings and Other Financing Instruments [Abstract]

Short-Term Borrowings

Money pool borrowings for NSP-Wisconsin:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2021			Year Ended Dec. 31, 2020
Borrowing limit	$	150		$	—
Amount outstanding at period end	33			—
Average amount outstanding	20			—
Maximum amount outstanding	41			—
Weighted average interest rate, computed on a daily basis	0.04		%	N/A
Weighted average interest rate at period end	0.02			N/A

Commercial Paper

Borrowings and Other Financing Instruments [Abstract]

Short-Term Borrowings

Commercial paper outstanding for NSP-Wisconsin:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2021		Year Ended Dec. 31, 2020
Borrowing limit	$	150	$	150
Amount outstanding at period end	—		19
Average amount outstanding	—		30
Maximum amount outstanding	—		95
Weighted average interest rate, computed on a daily basis	N/A		1.59		%
Weighted average interest rate at period end	N/A		0.17

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Revenues (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

NSP-Wisconsin’s operating revenues consisted of the following:

	Three Months Ended June 30, 2021
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	64	$	15	$	79
C&I	108		15		123
Other	2		—		2
Total retail	174		30		204
Interchange	46		—		46
Other	1		1		2
Total revenue from contracts with customers	221		31		252
Alternative revenue and other	3		—		3
Total revenues	$	224	$	31	$	255

	Three Months Ended June 30, 2020
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	60	$	10	$	70
C&I	93		7		100
Other	2		—		2
Total retail	155		17		172
Interchange	41		—		41
Other	—		1		1
Total revenue from contracts with customers	196		18		214
Alternative revenue and other	3		1		4
Total revenues	$	199	$	19	$	218

	Six Months Ended June 30, 2021
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	135	$	46	$	181
C&I	211		39		250
Other	3		—		3
Total retail	349		85		434
Interchange	92		—		92
Other	1		2		3
Total revenue from contracts with customers	442		87		529
Alternative revenue and other	6		1		7
Total revenues	$	448	$	88	$	536

	Six Months Ended June 30, 2020
(Millions of Dollars)	Electric		Natural Gas		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	125	$	35	$	160
C&I	194		26		220
Other	3		—		3
Total retail	322		61		383
Interchange	82		—		82
Other	1		2		3
Total revenue from contracts with customers	405		63		468
Alternative revenue and other	6		1		7
Total revenues	$	411	$	64	$	475

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Difference between the statutory rate and ETR:

	Six Months Ended June 30
	2021		2020 (a)
Federal statutory rate	21.0	%	21.0	%
State tax (net of federal tax effect)	6.2		6.2
Increases (decreases) in tax from:
Plant regulatory differences (b)	(5.4)		(18.4)
Amortization of excess nonplant deferred taxes	—		(12.5)
Tax credits, net of NOL & tax credit allowances	(1.3)		(1.7)
Other (net)	0.2		0.9
Effective income tax rate	20.7	%	(4.5)	%

(a)     Prior periods have been restated to conform to current year presentation.

(b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions.

Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block]

Federal Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows:

Tax Years	Expiration
2014 - 2016	January 2022
2017	September 2021

Reconciliation of Unrecognized Tax Benefits

Unrecognized tax benefits — permanent vs. temporary:

(Millions of Dollars)	June 30, 2021		Dec. 31, 2020
Unrecognized tax benefit — Permanent tax positions	$	2	$	1
Unrecognized tax benefit — Temporary tax positions	1		1
Total unrecognized tax benefit	$	3	$	2

Tax Benefits Associated with NOL and Tax Credit Carryforwards

Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:

(Millions of Dollars)	June 30, 2021		Dec. 31, 2020
NOL and tax credit carryforwards	$	(2)	$	(2)

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Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level

Recurring Fair Value Measurements — As of June 30, 2021, there were immaterial derivative assets measured at fair value on a recurring basis. At Dec. 31, 2020, NSP-Wisconsin's derivative assets measured at fair value on a recurring basis were as follows:

	Dec. 31, 2020
	Fair Value						Fair Value Total		Netting (a)		Total (b)
(Millions of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	1	$	—	$	1	$	—	$	1

(a)    NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets 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, 2020. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

(b)    Included in prepayments and other current assets balance of $7 million at Dec. 31, 2020 on the consolidated balance sheets.

Carrying Amount and Fair Value of Long-term Debt

Other financial instruments for which the carrying amount did not equal fair value:

	June 30, 2021				Dec. 31, 2020
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	907	$	1,067	$	906	$	1,124

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Benefit Plans and Other Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost (Credit)

	Three Months Ended June 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	1	$	1
Interest cost (a)	1		1
Expected return on plan assets (a)	(2)		(2)
Amortization of net loss (a)	1		1
Net periodic benefit cost	$	1	$	1
Effects of regulation	—		2
Net benefit cost recognized for financial reporting	$	1	$	3

	Six Months Ended June 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	3	$	2
Interest cost (a)	2		2
Expected return on plan assets (a)	(4)		(4)
Amortization of net loss (a)	2		3
Net periodic benefit cost	$	3	$	3
Effects of regulation	—		4
Net benefit cost recognized for financial reporting	$	3	$	7

(a)     The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

^[1]

[1] The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

NSP-Wisconsin's segment information:

	Three Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues (a)	$	224	$	199
Net income	16		16
Regulated Natural Gas
Total revenues	$	31	$	19
Net loss	(2)		(3)
All Other
Total revenues	$	—	$	—
Net loss	—		(1)
Consolidated Total
Total revenues (a)	$	255	$	218
Net income	14		12

(a)    Total revenues include $46 million and $41 million of affiliate electric revenue for the three months ended June 30, 2021 and 2020, respectively.

	Six Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues (a)	$	448	$	411
Net income	40		41
Regulated Natural Gas
Total revenues	$	88	$	64
Net income	6		6
All Other
Total revenues	$	—	$	—
Net loss	—		(1)
Consolidated Total
Total revenues (a)	$	536	$	475
Net income	46		46

(a)    Total revenues include $92 million and $82 million of affiliate electric revenue for the six months ended June 30, 2021 and 2020, respectively.

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Selected Balance Sheet Data - Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Accounts Receivable, Net
Accounts receivable	$ 68	$ 78
Less allowance for bad debts	(7)	(8)
Accounts receivable, net	$ 61	$ 70

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Selected Balance Sheet Data - Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Public Utilities, Inventory [Line Items]
Total Inventories	$ 15	$ 15
Materials and supplies
Public Utilities, Inventory [Line Items]
Inventories	7	7
Fuel
Public Utilities, Inventory [Line Items]
Inventories	5	4
Natural gas
Public Utilities, Inventory [Line Items]
Inventories	$ 3	$ 4

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Selected Balance Sheet Data - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,978	$ 3,880
Less accumulated depreciation	(1,437)	(1,396)
Property, plant and equipment, net	2,541	2,484
Electric plant
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,253	3,197
Natural gas plant
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	402	391
Common and other property
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	224	221
Construction work in progress
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 99	$ 71

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Borrowings and Other Financing Instruments, Commercial Paper (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Amount outstanding at period end		$ 0		$ 0	$ 19,000,000
Credit Facility
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	[1]	150,000,000		150,000,000
Long-term Line of Credit		0		0	0
Payable to Affiliates
Short-term Debt [Line Items]
Notes Payable, Related Parties, Current		0		0	0
Commercial Paper
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		150,000,000		150,000,000	150,000,000
Amount outstanding at period end		0		0	$ 19,000,000
Average amount outstanding			$ 30,000,000	0
Maximum amount outstanding			$ 95,000,000	0
Weighted average interest rate, computed on a daily basis			1.59%
Weighted average interest rate at period end					0.17%
Money Pool
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		150,000,000		150,000,000	$ 0
Amount outstanding at period end		33,000,000		$ 33,000,000	$ 0
Average amount outstanding		20,000,000	$ 0
Maximum amount outstanding		$ 41,000,000	$ 0
Weighted average interest rate, computed on a daily basis		0.04%
Weighted average interest rate at period end		0.02%		0.02%

[1] Expires in June 2024.

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Borrowings and Other Financing Instruments, Letters of Credit (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Period	1 year
Amount outstanding at period end	$ 0	$ 19,000,000
Credit Facility
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 0	$ 0

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Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($)		Jun. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Credit Facility	[1]	$ 150,000,000
Outstanding	[2]	0
Available		150,000,000
Direct advances on the credit facility outstanding		$ 0	$ 0

[1] Expires in June 2024.

[2] Includes outstanding commercial paper.

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Borrowings and Other Financing Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Clearwater Borrowings	$ 0.0	$ 0.0
Payable to Affiliates
Short-term Debt [Line Items]
Notes Payable, Related Parties, Current	$ 0.0	$ 0.0

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Revenues (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ 255	$ 218	$ 536	$ 475
Regulated Electric | Total revenues
Disaggregation of Revenue [Line Items]
Total revenues	224	199	448	411
Regulated Natural Gas | Total revenues
Disaggregation of Revenue [Line Items]
Total revenues	31	19	88	64
Retail
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	204	172	434	383
Retail | Residential
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	79	70	181	160
Retail | C&I
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	123	100	250	220
Retail | Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	2	2	3	3
Retail | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	174	155	349	322
Retail | Regulated Electric | Residential
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	64	60	135	125
Retail | Regulated Electric | C&I
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	108	93	211	194
Retail | Regulated Electric | Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	2	2	3	3
Retail | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	30	17	85	61
Retail | Regulated Natural Gas | Residential
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	15	10	46	35
Retail | Regulated Natural Gas | C&I
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	15	7	39	26
Retail | Regulated Natural Gas | Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0	0	0
Interchange
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	46	41	92	82
Interchange | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	46	41	92	82
Interchange | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0	0	0
Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	2	1	3	3
Other | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1	0	1	1
Other | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1	1	2	2
Total revenue from contracts with customers
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	252	214	529	468
Total revenue from contracts with customers | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	221	196	442	405
Total revenue from contracts with customers | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	31	18	87	63
Alternative revenue and other
Disaggregation of Revenue [Line Items]
Alternative revenue and other	3	4	7	7
Alternative revenue and other | Regulated Electric
Disaggregation of Revenue [Line Items]
Alternative revenue and other	3	3	6	6
Alternative revenue and other | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Alternative revenue and other	$ 0	$ 1	$ 1	$ 1

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Income Taxes (Details) - USD ($)		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	[1]	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Income Tax Penalties Accrued		$ 0			$ 0
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%	21.00%
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent		6.20%	6.20%
Effective Income Tax Rate Reconciliation, Other Regulatory Items, Percent	[2]	(5.40%)	(18.40%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amortization, Percent		0.00%	(12.50%)
Regulatory difference - tax credits and tax credit and NOL allowances (net)		(1.30%)	(1.70%)
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent		0.20%	0.90%
Effective Income Tax Rate Reconciliation, Percent		20.70%	(4.50%)

[1] Prior periods have been restated to conform to current year presentation.

[2] Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions.

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Income Taxes Unrecognized Benefits (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Tax Benefits Associated With Nol And Tax Credit Carryforwards	$ 2,000,000	$ 2,000,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	2,000,000	1,000,000
Unrecognized Tax Benefits That Would Not Impact Effective Tax Rate	1,000,000	1,000,000
Total unrecognized tax benefit	3,000,000	2,000,000
Decrease in Unrecognized Tax Benefits is Reasonably Possible	1,000,000
Unrecognized Tax Benefits, Income Tax Penalties Accrued	$ 0	$ 0

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Fair Value of Financial Assets and Liabilities - Interest Rate Derivatives (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Interest Rate Swap
Derivative [Line Items]
Derivative Liability, Notional Amount	$ 0	$ 0

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Fair Value of Financial Assets and Liabilities - Impact of Derivative Activities on Income (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract]
Derivative instruments designated as fair value hedges	$ 0	$ 0	$ 0	$ 0
Other Derivative Instruments | Natural Gas Commodity
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities)	0	$ 0	(1,000,000)	$ (1,000,000)
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities	$ 0		$ 1,000,000

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Fair Value of Financial Assets and Liabilities - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions		Jun. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Prepayments and other		$ 5	$ 7
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Asset, Gross			1
Netting	[1]		0
Derivative Asset, Net	[2]		1
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | Level 1
Derivatives, Fair Value [Line Items]
Derivative Asset, Gross			0
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | Level 2
Derivatives, Fair Value [Line Items]
Derivative Asset, Gross			1
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | Level 3
Derivatives, Fair Value [Line Items]
Derivative Asset, Gross			$ 0

[1] NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets 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, 2020. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

[2] Included in prepayments and other current assets balance of $7 million at Dec. 31, 2020 on the consolidated balance sheets.

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Fair Value of Financial Assets and Liabilities - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Carrying Amount	$ 907	$ 906
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 1,067	$ 1,124

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Benefit Plans and Other Postretirement Benefits (Details) - Pension Plan [Member] $ in Millions		1 Months Ended	3 Months Ended		6 Months Ended
		Jan. 31, 2021 USD ($) Plan	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)
Components of Net Periodic Benefit Cost [Abstract]
Service cost			$ 1	$ 1	$ 3	$ 2
Interest cost (a)	[1]		1	1	2	2
Expected return on plan assets (a)	[1]		(2)	(2)	(4)	(4)
Amortization of net loss (a)	[1]		1	1	2	3
Net periodic benefit cost			1	1	3	3
Effects of regulation			0	2	0	4
Net benefit cost recognized for financial reporting			$ 1	$ 3	$ 3	$ 7
Contributions to pension plans		$ 5
Parent Company [Member]
Components of Net Periodic Benefit Cost [Abstract]
Contributions to pension plans		$ 125
Number of Xcel Energy's pension plans to which contributions were made | Plan		4

[1] The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

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Commitments and Contingencies Gas Trading Litigation (Details) number in Millions	Jun. 30, 2021
Breckenridge Litigation
Loss Contingencies [Line Items]
Loss Contingency, Pending Claims, Number	3

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MISO ROE Complaints (Details) - Federal Energy Regulatory Commission (FERC)	1 Months Ended		3 Months Ended	7 Months Ended	10 Months Ended	11 Months Ended	17 Months Ended
	Feb. 28, 2015	Nov. 30, 2013	Mar. 31, 2017	Dec. 31, 2020	Mar. 31, 2021	Mar. 31, 2021	Mar. 31, 2021	Jun. 30, 2021
NSP Minnesota and NSP Wisconsin [Member] [Member] | FERC Proceeding, MISO ROE Complaint
Rate Matters [Abstract]
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 MISO Region, Recommended By Third Parties	8.67%	9.15%
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Approved			10.32%
Public Utilities, ROE developed with new approach							9.88%
Public Utilities, ROE New Base, Complaint Number 1						10.02%
Basis Point Reduction - Third Complaint				200000000.00%
Basis Point Reduction - Second Complaint				100000000.00%
Basis Point Reduction - First Complaint				100000000.00%
Basis Point Reduction					1000.00%
NSP Minnesota, NSP Wisconsin and SPS
Rate Matters [Abstract]
ROE incentive adders related to FERC NOPR								0.50%

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MGP, Landfill and Disposal Sites (Details)	Jun. 30, 2021
Other MGP, Landfill, or Disposal Sites [Domain]
Site Contingency [Line Items]
Number of identified MGP sites under current investigation and/or remediation	2

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Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total revenues
Other Commitments [Line Items]
Total revenues	$ 255	$ 218	$ 536	$ 475
Regulated Electric | Total revenues
Other Commitments [Line Items]
Total revenues	224	199	448	411
Regulated Natural Gas | Total revenues
Other Commitments [Line Items]
Total revenues	31	19	88	64
Retail
Other Commitments [Line Items]
Revenue from contracts with customers	204	172	434	383
Retail | Regulated Electric
Other Commitments [Line Items]
Revenue from contracts with customers	174	155	349	322
Retail | Regulated Natural Gas
Other Commitments [Line Items]
Revenue from contracts with customers	30	17	85	61
Interchange
Other Commitments [Line Items]
Revenue from contracts with customers	46	41	92	82
Interchange | Regulated Electric
Other Commitments [Line Items]
Revenue from contracts with customers	46	41	92	82
Interchange | Regulated Natural Gas
Other Commitments [Line Items]
Revenue from contracts with customers	0	0	0	0
Other
Other Commitments [Line Items]
Revenue from contracts with customers	2	1	3	3
Other | Regulated Electric
Other Commitments [Line Items]
Revenue from contracts with customers	1	0	1	1
Other | Regulated Natural Gas
Other Commitments [Line Items]
Revenue from contracts with customers	1	1	2	2
Total revenue from contracts with customers
Other Commitments [Line Items]
Revenue from contracts with customers	252	214	529	468
Total revenue from contracts with customers | Regulated Electric
Other Commitments [Line Items]
Revenue from contracts with customers	221	196	442	405
Total revenue from contracts with customers | Regulated Natural Gas
Other Commitments [Line Items]
Revenue from contracts with customers	31	18	87	63
Alternative revenue and other
Other Commitments [Line Items]
Alternative revenue and other	3	4	7	7
Alternative revenue and other | Regulated Electric
Other Commitments [Line Items]
Alternative revenue and other	3	3	6	6
Alternative revenue and other | Regulated Natural Gas
Other Commitments [Line Items]
Alternative revenue and other	0	1	1	1
Residential | Retail
Other Commitments [Line Items]
Revenue from contracts with customers	79	70	181	160
Residential | Retail | Regulated Electric
Other Commitments [Line Items]
Revenue from contracts with customers	64	60	135	125
Residential | Retail | Regulated Natural Gas
Other Commitments [Line Items]
Revenue from contracts with customers	15	10	46	35
C&I | Retail
Other Commitments [Line Items]
Revenue from contracts with customers	123	100	250	220
C&I | Retail | Regulated Electric
Other Commitments [Line Items]
Revenue from contracts with customers	108	93	211	194
C&I | Retail | Regulated Natural Gas
Other Commitments [Line Items]
Revenue from contracts with customers	15	7	39	26
Other | Retail
Other Commitments [Line Items]
Revenue from contracts with customers	2	2	3	3
Other | Retail | Regulated Electric
Other Commitments [Line Items]
Revenue from contracts with customers	2	2	3	3
Other | Retail | Regulated Natural Gas
Other Commitments [Line Items]
Revenue from contracts with customers	$ 0	$ 0	$ 0	$ 0

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Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Net income	$ 14	$ 12	$ 46	$ 46
Regulated and Unregulated Operating Revenue	255	218	536	475
Affiliate Revenue	46	41	92	82
Total revenues
Segment Reporting Information [Line Items]
Regulated and Unregulated Operating Revenue	255	218	536	475
Regulated Electric
Segment Reporting Information [Line Items]
Net income	16	16	40	41
Regulated Electric | Total revenues
Segment Reporting Information [Line Items]
Regulated Operating Revenue, Electric	224	199	448	411
Regulated Natural Gas
Segment Reporting Information [Line Items]
Net income	(2)	(3)	6	6
Revenues Including Intersegment Revenues	31	19	88	64
All Other
Segment Reporting Information [Line Items]
Net income	0	(1)	0	(1)
All Other | Total revenues
Segment Reporting Information [Line Items]
Other	$ 0	$ 0	$ 0	$ 0