Segments and Related Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

NSP-Wisconsin’s chief operating decision maker, the CEO of Xcel Energy, sets financial performance objectives and budgets, with separate targets for regulated electric utility and regulated natural gas utility net income.

The regulated electric utility and regulated natural gas utility segments are managed separately because of inherent differences between activities to serve electric customers and those required to serve natural gas customers, and as the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment. The CEO assesses financial performance, including quarterly and annual budget-to-actual and year-over-year variances in revenues and expenses, to inform operating decisions, capital investments and cost recovery strategies.

NSP-Wisconsin has the following reportable segments:

•Regulated Electric Utility — The regulated electric utility segment generates, purchases, transmits, distributes and sells electricity in Michigan and Wisconsin; each state’s regulated electric utility activities qualify as an operating segment, and is aggregated into Xcel Energy’s regulated electric utility segment.

•Regulated Natural Gas Utility — The regulated natural gas utility segment purchases, transports, stores, distributes and sells natural gas in portions of Michigan and Wisconsin; each state’s regulated natural gas utility activities qualify as an operating segment, and is aggregated into Xcel Energy’s regulated natural gas utility segment.

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.

Other segment expenses, net, for the reportable segments includes conservation and DSM expenses, taxes (other than income taxes), other income (expense), net, intersegment expenses and AFUDC - equity.

Non-segment revenues include appliance repair and non-utility real estate activities and revenues associated with processing solid waste into RDF. Non-segment net income also includes costs associated with these activities.

Segment information and reconciliations to NSP-Wisconsin’s consolidated operating revenues and net income:

	2024
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	995	$	135	$	1,130
Intersegment revenue	—		1		1
Total segment revenues	995		136		1,131
Electric fuel and purchased power	397		—		397
Cost of natural gas sold and transported	—		55		55
O&M expenses	201		28		229
Depreciation and amortization	156		30		186
Other segment expenses, net	29		5		34
Interest charges and financing costs	54		7		61
Income tax expense	37		2		39
Net income	$	121	$	9	$	130
Total segment revenues					$	1,131
Eliminate intersegment revenue					(1)
Non-segment revenues					1
Consolidated operating revenues					$	1,131
Total segment net income					$	130
Non-segment net income					4
Consolidated net income					$	134

(a)Operating revenues include $216 million of affiliate electric revenue. See Note 12 for further information.

	2023
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	1,019	$	157	$	1,176
Intersegment revenues	—		1		1
Total segment revenues	1,019		158		1,177
Electric fuel and purchased power	422		—		422
Cost of natural gas sold and transported	—		80		80
O&M expenses	210		28		238
Depreciation and amortization	142		28		170
Other segment expenses, net (b)	36		6		42
Interest charges and financing costs	45		5		50
Income tax expense	38		2		40
Net income	126		9		$	135
Total segment revenues					$	1,177
Eliminate intersegment revenue					(1)
Non-segment revenues					1
Consolidated operating revenues					$	1,177
Total segment net income					$	135
Non-segment net income					1
Consolidated net income					$	136

(a)Operating revenues include $204 million of affiliate electric revenue. See Note 12 for further information.

(b)Other segment expenses, net, for 2023 additionally includes workforce reduction expenses.

	2022
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	1,002	$	198	$	1,200
Electric fuel and purchased power	463		—		463
Cost of natural gas sold and transported	—		116		116
O&M expenses	202		23		225
Depreciation and amortization	131		27		158
Other segment expenses, net	34		5		39
Interest charges and financing costs	38		4		42
Income tax expense	29		6		35
Net income	105		17		$	122
Total segment revenues					$	1,200
Non-segment revenues					1
Consolidated operating revenues					$	1,201
Total segment net income					$	122
Non-segment net income					3
Consolidated net income					$	125

(a)Operating revenues include $202 million of affiliate electric revenue. See Note 12 for further information.