nspw-20260930

Definitions of Abbreviations


Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former)

NSP-Minnesota			Northern States Power Company, a Minnesota corporation
NSP System			The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota
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

EPA			United States Environmental Protection Agency
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission

MPSC			Michigan Public Service Commission
MPUC			Minnesota Public Utilities Commission

PSCW			Public Service Commission of Wisconsin
SEC			Securities and Exchange Commission


Other
AFUDC			Allowance for funds used during construction
ASU			Accounting standards update
C&I			Commercial and Industrial
CEO			Chief executive officer
CERCLA			Comprehensive Environmental Response, Compensation, and Liability Act
CFO			Chief financial officer

DSM			Demand side management

GAAP			United States generally accepted accounting principles

GHG			Greenhouse gas


MGP			Manufactured gas plant

NOx			Nitrogen Oxides
O&M			Operating and maintenance
PFAS			Per- and Polyfluoroalkyl Substances
PPA			Power purchase agreement

RFP			Request for proposal
ROE			Return on equity



Measurements
MW			Megawatts


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 tax rates, 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 or refunds to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of interest rate changes, increased credit exposure and legal proceeding outcomes, 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 in NSP-Wisconsin's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025 and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety; successful long-term operational planning; risks associated with wildfires; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; reputational impacts of actions by employees, directors or third-parties; our ability to recover costs; risks associated with the growth in large load customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of NSP-Wisconsin 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; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.


	Nine Months Ended Sept. 30
	2026		2025
Operating activities
Net income	$	157	$	111
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	166		151
Deferred income taxes	14		19
Allowance for equity funds used during construction	(18)		(17)
Provision for bad debts	2		1
Changes in operating assets and liabilities:
Accounts receivable	(5)		44
Accrued unbilled revenues	14		17
Inventories	(18)		(18)
Other current assets	10		15
Accounts payable	21		12
Net regulatory assets and liabilities	15		(17)
Other current liabilities	31		10
Pension and other employee benefit obligations	(4)		(7)
Other, net	4		2
Net cash provided by operating activities	389		323

Investing activities
Capital/construction expenditures	(573)		(418)
Investments in utility money pool arrangement	(92)		(128)
Repayments from utility money pool arrangement	92		143

Net cash used in investing activities	(573)		(403)

Financing activities

Repayments of short-term borrowings, net	—		(35)
Borrowings under utility money pool arrangement	192		159
Repayments under utility money pool arrangement	(200)		(159)
Proceeds from long-term debt	249		240

Capital contributions from parent	137		153
Dividends paid to parent	(69)		(54)

Net cash provided by financing activities	309		304

Net change in cash, cash equivalents and restricted cash	125		224
Cash, cash equivalents and restricted cash at beginning of period	8		8
Cash, cash equivalents and restricted cash at end of period	$	133	$	232

Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	$	(49)	$	(40)

Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additions	$	154	$	75
Inventory transfers to property, plant and equipment	9		11
Allowance for equity funds used during construction	18		17


	Sept. 30, 2026		Dec. 31, 2025
Assets
Current assets
Cash and cash equivalents	$	133	$	8
Accounts receivable, net	83		78

Accounts receivable from affiliates	11		23
Accrued unbilled revenues	50		64

Inventories	39		33
Regulatory assets	37		26
Prepaid taxes	22		28
Prepayments and other	6		11
Total current assets	381		271

Property, plant and equipment, net	4,735		4,213

Other assets
Regulatory assets	153		164

Other	12		14
Total other assets	165		178
Total assets	$	5,281	$	4,662

Liabilities and Equity
Current liabilities


Borrowings under utility money pool arrangement	$	—	$	8
Accounts payable	194		123
Accounts payable to affiliates	34		18
Dividends payable to parent	25		17
Regulatory liabilities	29		29
Taxes accrued	27		18

Accrued interest	26		15
Other	32		26
Total current liabilities	367		254

Deferred credits and other liabilities
Deferred income taxes	396		375
Regulatory liabilities	466		437

Customer advances	31		28
Pension and employee benefit obligations	14		17
Other	38		38
Total deferred credits and other liabilities	945		895

Commitments and contingencies
Capitalization
Long-term debt	1,896		1,647
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Sept. 30, 2026 and Dec. 31, 2025, respectively	93		93
Additional paid in capital	1,340		1,213
Retained earnings	640		560
Total common stockholder's equity	2,073		1,866
Total liabilities and equity	$	5,281	$	4,662


	Common Stock Issued					Retained Earnings		Total Common Stockholder's Equity
	Shares	Par Value		Additional Paid In Capital
Three Months Ended Sept. 30, 2026 and 2025
Balance at June 30, 2025	933,000	$	93	$	1,156	$	507	$	1,756
Net income						43		43
Common dividends declared to parent						(21)		(21)
Contribution of capital by parent				44				44
Balance at Sept. 30, 2025	933,000	$	93	$	1,200	$	529	$	1,822

Balance at June 30, 2026	933,000	$	93	$	1,307	$	612	$	2,012
Net income						53		53
Common dividends declared to parent						(25)		(25)
Contribution of capital by parent				33				33
Balance at Sept. 30, 2026	933,000	$	93	$	1,340	$	640	$	2,073


	Common Stock Issued					Retained Earnings		Total Common Stockholder's Equity
	Shares	Par Value		Additional Paid In Capital
Nine Months Ended Sept. 30, 2026 and 2025
Balance at Dec. 31, 2024	933,000	$	93	$	1,046	$	478	$	1,617
Net income						111		111
Common dividends declared to parent						(60)		(60)
Contribution of capital by parent				154				154
Balance at Sept. 30, 2025	933,000	$	93	$	1,200	$	529	$	1,822

Balance at Dec. 31, 2025	933,000	$	93	$	1,213	$	560	$	1,866
Net income						157		157
Common dividends declared to parent						(77)		(77)
Contribution of capital by parent				127				127
Balance at Sept. 30, 2026	933,000	$	93	$	1,340	$	640	$	2,073

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 Sept. 30, 2026 and Dec. 31, 2025; the results of NSP-Wisconsin's operations, including the components of net income and changes in stockholder's equity for the three and nine months ended Sept. 30, 2026 and 2025; and NSP-Wisconsin’s cash flows for the nine months ended Sept. 30, 2026 and 2025.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2026 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, 2025 balance sheet information has been derived from the audited 2025 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2025.

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, 2025, filed with the SEC on Feb. 25, 2026. 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, 2025 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.


2. Accounting Pronouncements

Recently Issued

Disaggregation of Income Statement Expenses — In November 2024, the FASB issued ASU 2024-03 – Expense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure of additional detail for certain categories of income statement expenses. The ASU is effective for annual reporting periods beginning after Dec. 15, 2026 and interim reporting periods beginning after Dec. 15, 2027. NSP-Wisconsin is evaluating the impact of the new disclosure guidance.

Environmental Credits — In May 2026, the FASB issued ASU 2026-02 – Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes accounting and disclosure requirements for certain environmental instruments, including renewable energy credits and emissions allowances, as well as for compliance obligations that will be satisfied with such credits. The ASU is effective for annual and interim periods beginning after Dec. 15, 2027. NSP-Wisconsin is evaluating the impact of the new accounting and disclosure guidance.

3. Selected Balance Sheet Data


(Millions of dollars)	Sept. 30, 2026		Dec. 31, 2025
Accounts receivable, net
Accounts receivable	$	88	$	82
Less allowance for bad debts	(5)		(4)
Accounts receivable, net	$	83	$	78


(Millions of dollars)	Sept. 30, 2026		Dec. 31, 2025
Inventories
Materials and supplies	$	21	$	16
Fuel	10		10
Natural gas	8		7
Total inventories	$	39	$	33


(Millions of dollars)	Sept. 30, 2026		Dec. 31, 2025
Property, plant and equipment, net
Electric plant	$	4,910	$	4,383
Natural gas plant	638		608
Common and other property	331		329
Construction work in progress	725		673
Total property, plant and equipment	6,604		5,993
Less accumulated depreciation	(1,869)		(1,780)
Property, plant and equipment, net	$	4,735	$	4,213


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:


(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2026		Year Ended Dec. 31, 2025
Borrowing limit	$	150	$	150
Amount outstanding at period end	—		8
Average amount outstanding	—		2
Maximum amount outstanding	—		42
Weighted average interest rate, computed on a daily basis	N/A		4.25		%
Weighted average interest rate at period end	N/A		3.88

Commercial Paper — Commercial paper outstanding:


(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2026		Year Ended Dec. 31, 2025
Borrowing limit	$	150	$	150
Amount outstanding at period end	—		—
Average amount outstanding	—		3
Maximum amount outstanding	—		50
Weighted average interest rate, computed on a daily basis	N/A		4.57		%
Weighted average interest rate at period end	N/A		N/A

Letters of Credit — NSP-Wisconsin uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At both Sept. 30, 2026 and Dec. 31, 2025, there were immaterial 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 equal to or greater than the 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 Sept. 30, 2026, 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 December 2029.

(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 Sept. 30, 2026 and Dec. 31, 2025.

Long-Term Borrowings

During the nine months ended Sept. 30, 2026, NSP-Wisconsin issued $250 million in aggregate principal amount of 5.48% First Mortgage Bonds due June 15, 2041.

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 Sept. 30, 2026
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	103	$	9	$	1	$	113
C&I	153		8		—		161
Other	2		—		—		2
Total retail	258		17		1		276
Interchange and other	69		1		—		70

Total revenue from contracts with customers	327		18		1		346
Alternative revenue and other	3		1		—		4
Total revenues	$	330	$	19	$	1	$	350


	Three Months Ended Sept. 30, 2025
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	86	$	8	$	—	$	94
C&I	139		9		—		148
Other	2		—		1		3
Total retail	227		17		1		245
Interchange and other	61		1		—		62

Total revenue from contracts with customers	288		18		1		307
Alternative revenue and other	3		—		—		3
Total revenues	$	291	$	18	$	1	$	310


	Nine Months Ended Sept. 30, 2026
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	268	$	67	$	1	$	336
C&I	401		52		—		453
Other	6		—		—		6
Total retail	675		119		1		795
Interchange and other	201		5		—		206

Total revenue from contracts with customers	876		124		1		1,001
Alternative revenue and other	9		3		—		12
Total revenues	$	885	$	127	$	1	$	1,013


	Nine Months Ended Sept. 30, 2025
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	238	$	59	$	—	$	297
C&I	376		46		—		422
Other	5		—		1		6
Total retail	619		105		1		725
Interchange and other	177		4		—		181

Total revenue from contracts with customers	796		109		1		906
Alternative revenue and other	7		1		—		8
Total revenues	$	803	$	110	$	1	$	914


6. Income Taxes

Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense.

Effective income tax reconciliation:


	Nine Months Ended Sept. 30
(Millions of Dollars)	2026		2025
Income before income taxes (domestic)	$	205	$	143

Federal statutory rate impact	43		30
(Decreases) increases in tax from:
Tax credits

Other	(1)		(1)
Regulatory adjustments (a)
AFUDC equity	(4)		(4)
Plant related excess deferred taxes	(2)		(2)
Other	1		1
State income taxes, net of federal tax effect (b)	12		7
Other	(1)		1
Income tax expense	$	48	$	32


	Nine Months Ended Sept. 30
	2026		2025
Federal statutory rate	21.0	%	21.0	%
(Decreases) increases in tax from:
Tax credits

Other	(0.5)		(0.4)
Regulatory adjustments (a)
AFUDC equity	(2.1)		(2.5)
Plant related excess deferred taxes	(0.8)		(1.4)
Other	0.3		0.4
State income taxes, net of federal tax effect (b)	6.0		5.3
Other	(0.5)		—
Effective income tax rate	23.4	%	22.4	%

(a)Regulatory adjustments primarily relate to the credit of plant related excess deferred taxes to customers for tax rate changes as well as the capitalization of AFUDC equity for book purposes only. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions.

(b)State and local income taxes are primarily Wisconsin state taxes.


7. Fair Value of Financial Assets and Liabilities

Fair Value Measurements

Accounting guidance for fair value measurements and disclosures provides a hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value.

•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 actively traded instruments with observable actual trading prices.

•Level 2 — Pricing inputs are other than actual trading 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 include those valued with models requiring significant judgment or estimation.

Fair Value of Long-Term Debt

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


	Sept. 30, 2026				Dec. 31, 2025
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	1,896	$	1,697	$	1,647	$	1,572

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 Sept. 30, 2026 and Dec. 31, 2025, 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


	Three Months Ended Sept. 30
	2026		2025
(Millions of Dollars)	Pension Benefits
Service cost	$	1	$	1
Interest cost (a)	1		2
Expected return on plan assets (a)	(2)		(2)

Amortization of net loss (a)	1		1

Net periodic benefit cost	1		2
Effects of regulation	1		—
Net benefit cost recognized for financial reporting	$	2	$	2


	Nine Months Ended Sept. 30
	2026		2025
(Millions of Dollars)	Pension Benefits
Service cost	$	3	$	3
Interest cost (a)	4		4
Expected return on plan assets (a)	(6)		(6)

Amortization of net loss (a)	2		1

Net periodic benefit cost	3		2
Effects of regulation	2		1
Net benefit cost recognized for financial reporting	$	5	$	3

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

In January 2026, contributions totaling $75 million were made across Xcel Energy’s pension plans, of which $5 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2026.

9. Commitments and Contingencies

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, 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.

Rate Matters

NSP-Wisconsin is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the financial statements.

Environmental

New and changing federal and state environmental mandates can create financial liabilities for NSP-Wisconsin, which are normally recovered through the regulated rate process.

Site Remediation

Various federal and state environmental laws impose liability where hazardous substances or other regulated materials have been released to the environment. NSP-Wisconsin may sometimes pay all or a portion of the cost to remediate sites where past activities of their predecessors or other parties have caused environmental contamination.

Environmental contingencies could arise from various situations, including sites of former MGPs; and third-party sites, such as landfills, for which NSP-Wisconsin is alleged to have sent wastes to that site.

MGP, Landfill and Disposal Sites

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

NSP-Wisconsin has approximately $10 million of remaining liabilities for resolution of these issues, however, the final outcome and timing are unknown. In addition, there may be regulatory recovery, insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.

Water and Waste

Coal Ash Regulation — NSP-Wisconsin is subject to the CCR Rule, which imposes requirements for handling, storage, treatment and disposal of coal ash and other solid waste.

In May 2024, final amendments to the CCR Rule were published, widening its scope to include legacy CCR surface impoundments at inactive facilities and previously exempt areas where CCR was placed directly on land at CCR-regulated facilities, including areas of beneficial use.

As a requirement of the CCR Rule, utilities must complete facility evaluations and groundwater sampling around their subject landfills, surface impoundments and certain other areas where coal ash was placed on land.

If certain impacts to groundwater are detected, utilities are required to perform additional groundwater investigations and/or perform corrective actions.

NSP-Wisconsin continues to perform site investigation activities related to the CCR Rule, which may result in updates to estimated costs as well as identification of additional required corrective actions.

In February 2026, the EPA issued a final rule amending the CCR Legacy rule. The ruling extends deadlines for various regulatory actions and clarifies previous information regarding implementation of the rule. NSP-Wisconsin anticipates impacts to be consistent with prior accruals.

In April 2026, the EPA published a new proposed rule with additional amendments to the CCR Legacy Rule. NSP-Wisconsin is evaluating this proposed rule and its potential impacts.

Air

Clean Air Act NOx Allowance Allocations — In June 2023, the EPA published final regulations for ozone under the “Good Neighbor” provisions of the Clean Air Act that established NOx allowance budgets for fossil fuel-fired electric generating facilities in subject states. The final rule establishes a federal plan and applies to generation facilities in Wisconsin, as well as other states outside of our service territory.

If the rule is implemented, NSP-Wisconsin anticipates the annual costs could be significant but recoverable through regulatory mechanisms. However, the plan is subject to both judicial and administrative stays while the EPA reconsiders the rule.

In January 2026, the EPA proposed Phase 1 of its reconsideration of the “Good Neighbor” rule. Xcel Energy will continue to evaluate any additional phases of the reconsideration of this rule as they are published by the EPA.

10. Segment Information

Segment information and reconciliation to NSP-Wisconsin's consolidated net income:


	Three Months Ended Sept. 30, 2026
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	330	$	19	$	349


Electric fuel and purchased power	119		—		119
Cost of natural gas sold and transported	—		7		7
O&M expenses	65		8		73
Depreciation and amortization	47		9		56
Other segment expenses, net	5		—		5
Interest charges and financing costs	20		2		22
Income tax expense (benefit)	18		(2)		16
Net income (loss)	$	56	$	(5)	$	51

Total segment net income					$	51
Non-segment net income					2
Consolidated net income					$	53

(a)Operating revenues include $72 million of affiliate electric revenue.


	Three Months Ended Sept. 30, 2025
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	291	$	18	$	309


Electric fuel and purchased power	118		—		118
Cost of natural gas sold and transported	—		6		6
O&M expenses	52		6		58
Depreciation and amortization	43		8		51
Other segment expenses, net	5		1		6
Interest charges and financing costs	16		3		19
Income tax expense (benefit)	13		(2)		11
Net income (loss)	$	44	$	(4)	$	40

Total segment net income					$	40
Non-segment net income					3
Consolidated net income					$	43

(a)Operating revenues include $59 million of affiliate electric revenue.


	Nine Months Ended Sept. 30, 2026
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	885	$	127	$	1,012
Intersegment revenue	—		(1)		(1)
Total segment revenues	885		126		1,011
Electric fuel and purchased power	302		—		302
Cost of natural gas sold and transported	—		58		58
O&M expenses	180		24		204
Depreciation and amortization	140		24		164
Other segment expenses, net	17		2		19
Interest charges and financing costs	54		7		61
Income tax expense	46		2		48
Net income	$	146	$	9	$	155

Total segment net income					$	155
Non-segment net income					2
Consolidated net income					$	157

(a)Operating revenues include $204 million of affiliate electric revenue.


	Nine Months Ended Sept. 30, 2025
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	803	$	110	$	913


Electric fuel and purchased power	327		—		327
Cost of natural gas sold and transported	—		48		48
O&M expenses	158		23		181
Depreciation and amortization	127		23		150
Other segment expenses, net	16		2		18
Interest charges and financing costs	44		6		50
Income tax expense	29		2		31
Net income	$	102	$	6	$	108

Total segment net income					$	108
Non-segment net income					3
Consolidated net income					$	111

(a)Operating revenues include $170 million of affiliate electric revenue.

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, net intersegment expenses and AFUDC - equity.

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 ongoing earnings. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that adjusts 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.

Earnings Adjusted for Certain Items (Ongoing Earnings)

Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items.

We use this non-GAAP financial measure to evaluate and provide details of NSP-Wisconsin’s core earnings and underlying performance. We believe this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of NSP-Wisconsin. For the three and nine months ended Sept. 30, 2026 and 2025, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings.

Results of Operations

NSP-Wisconsin's net income was $157 million and $111 million for the nine months ended Sept. 30, 2026 and 2025, respectively. The change was driven by higher recovery of electric and natural gas infrastructure investments, partially offset by increased O&M expenses, depreciation expense and interest charges.

Electric Revenues

Electric revenues are impacted by fluctuations in the price of natural gas, coal and uranium, regulatory outcomes, market prices and seasonality.


(Millions of Dollars)	Nine Months Ended Sept. 30, 2026 vs. 2025
Regulatory rate outcomes (WI)	$	38
Interchange agreement revenue from NSP-Minnesota	34
Sales and demand	5
Estimated impact of weather	4
Other, net	1
Total increase	$	82

Natural Gas Revenues

Natural gas revenues vary with changing sales and the cost of natural gas and regulatory outcomes.


(Millions of Dollars)	Nine Months Ended Sept. 30, 2026 vs. 2025
Regulatory rate outcomes (WI)	$	9
Recovery of higher cost of natural gas	7
Other, net	1
Total increase	$	17

Electric Fuel and Purchased Power (Non-Affiliates and Affiliates) — Expenses incurred for electric fuel and purchased power are impacted by fluctuations in market prices of natural gas, coal and uranium, as well as seasonality. These incurred expenses are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.

Electric fuel and purchased power expenses decreased $25 million year-to-date. The decrease is primarily due to reduced interchange billings related to nuclear life extensions.

Cost of Natural Gas Sold and Transported — Expenses incurred for the cost of natural gas sold are impacted by market prices and seasonality. These costs are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.

Natural gas sold and transported increased $10 million year to date. The increase was primarily due to increased commodity prices.

Non-Fuel Operating Expenses and Other Items

O&M Expenses — O&M expenses increased $24 million year to date, primarily due to changes in regulatory mechanisms for insurance costs and increased interchange agreement billings with NSP-Minnesota.

Interest Charges — Interest charges increased $13 million year to date, largely due to increased long-term debt levels and higher interest rates.

Depreciation and Amortization — Depreciation and amortization increased $14 million year to date, primarily due to system expansion.

Public Utility Regulation and Other

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, 2025 appropriately represent, in all material respects, the current status of public utility regulation and are incorporated herein by reference.

NSP-Wisconsin

Proposed Sale of Michigan Operations

In October 2026, NSP-Wisconsin announced that it has entered into agreements to sell its approximately $150 million of Michigan electric and gas assets to Upper Peninsula Power Company and SEMCO ENERGY Gas Company, respectively, contingent on approvals of the MPSC, PSCW and FERC.

NSP-Wisconsin and the buyers plan to file requests for regulatory approvals by the end of 2026, with the transactions anticipated to close in 2027. The timing and amount of the gain for the transactions will be dependent on customary closing conditions and resolution of the regulatory approval processes.

NSP System

Pending and Recently Concluded Regulatory Proceedings

NSP-Minnesota and NSP-Wisconsin are actively engaged in multiple processes and proceedings to acquire resources to meet their identified generation resource needs.

•In October 2023, NSP-Minnesota issued an RFP seeking 1,200 MW of wind assets to replace capacity and reutilize interconnection rights associated with the retiring Sherco coal facilities. NSP-Minnesota filed for approval of recommended projects in March 2026, which were approved by the MPUC in September 2026.

•In December 2025, NSP-Minnesota and NSP-Wisconsin jointly issued an RFP seeking up to 3,500 MW of wind, solar, hydro, standalone storage, or hybrid capacity that will achieve commercial operation by December 31, 2030. Short-listed projects were announced in June 2026, and filing for requisite regulatory approval is expected by the end of 2026.

•NSP-Minnesota and NSP-Wisconsin may continue to file additional RFPs throughout 2026 and 2027 for resource needs as part of their Upper Midwest resource planning efforts.

Other

Tariffs, Trade Complaints and Federal Actions

Several trade cases related to anti-dumping and countervailing duty investigations are ongoing and we continue to monitor the potential impacts of these cases.

Executive orders have been issued imposing new global and country-specific tariffs on many imports, which may impact our procurement and development activities. Additionally, executive orders and actions from government agencies may impact the permitting of wind and solar facilities and the retirement of coal facilities.

NSP-Wisconsin continues to assess the impacts of these tariffs, executive orders, trade complaints and federal policies on its business, including company owned projects and PPAs. NSP-Wisconsin may seek regulatory relief, if required, in its jurisdictions.

Continued and/or further policy actions or other restrictions, disruptions in imports from key suppliers, or any new trade complaint could impact viability, timelines and costs of various projects and PPAs.

Large Load/Data Center Tariffs

In Wisconsin, we have proposed a tariff applicable to large load customers, designed to allow us to serve these new customers and support local economic development while protecting existing customers from bearing the incremental costs to serve these loads.

The proposed tariff, filed in the second quarter of 2026, would be mandatory for new loads over 100 MW and requires the customer pay for generation and other infrastructure costs needed to serve the load. The proposed tariff also includes a minimum initial term of 15 years, minimum bill provisions, termination and exit fees, and credit requirements. A PSCW decision is expected in early 2027.


Environmental Regulation

Throughout 2025 and 2026, the EPA has announced various regulatory actions addressing a wide range of environmental regulations. NSP-Wisconsin will continue to monitor proposed rules as they move toward final action. Additionally, any other amendments and changes to rules will be evaluated as proposed by the EPA.

Clean Air Act

Power Plant Greenhouse Gas Regulations — In April 2024, the EPA published final rules addressing greenhouse gas emissions from the power sector. The rules establish requirements for new natural gas-fired generating units and emission guidelines for existing coal and certain natural gas generation. In September 2026, the EPA issued a final rule repealing portions of the 2024 rules, including carbon capture and storage (CCS) standards. The EPA simultaneously proposed to rescind the remaining power plant GHG regulations.

Endangerment Finding — In February 2026, the EPA issued a final rule repealing the 2009 Endangerment Finding and associated regulations addressing GHG emissions from new motor vehicles and engines under the Clean Air Act. NSP-Wisconsin will monitor any additional actions and evaluate the impacts.

Emerging Contaminants of Concern

PFAS are man-made chemicals that are widely used in consumer products and can persist and bio-accumulate in the environment. NSP-Wisconsin does not manufacture PFAS, but because PFAS are so ubiquitous in products and the environment, it may impact our operations.

In June 2024, the EPA finalized a rule that designated certain PFAS as hazardous substances under CERCLA. In July 2024, the EPA finalized another rule that set enforceable drinking water standards for certain PFAS.

Potential costs for these rules and any additional proposed regulations related to PFAS are uncertain and will be determined on a site specific basis where applicable. If costs are incurred, NSP-Wisconsin believes the costs would be recoverable through rates based on prior state commission practices.


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 Sept. 30, 2026, 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

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, 2025, which is incorporated herein by reference. There have been no material changes from the risk factors previously disclosed in the Form 10-K.


ITEM 5 — OTHER INFORMATION

None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended Sept. 30, 2026.


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)


Class						Outstanding at October 29, 2026
Common Stock, $100 par value						933,000 shares


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 5 —	Other Information	15
Item 6 —	Exhibits	15

SIGNATURES		16


		Northern States Power Company (a Wisconsin corporation)

October 29, 2026	By:	/s/ MELISSA L. OSTROM
		Melissa L. Ostrom
		Senior Vice President, Controller
		(Principal Accounting Officer)


	By:	/s/ BRIAN J. VAN ABEL
		Brian J. Van Abel
		Executive Vice President, Chief Financial Officer
		(Principal Financial Officer)


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


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


Northern States Power Company
(Exact Name of Registrant as Specified in its Charter)


(715)			852-5812
(Registrant’s Telephone Number, Including Area Code)


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