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Income Tax Expense | 3 Months Ended
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Mar. 31, 2012
Income Tax Expense [Abstract] |
Income Tax Expense [Text Block] | INCOME TAX EXPENSE
|  | Quarter Ended
|  | March 31,
|  | 2012 |  | 2011
Millions |  |  |  |
Current Tax Expense |  |  |  |
Federal (a) |  | — |  |  | — |
State (a) |  | — |  |  |  | $0.1 |
Total Current Tax Expense |  | — |  |  | 0.1
Deferred Tax Expense (Benefit) |  |  |  |
Federal (b) |  | $8.7 |  | 6.8
State (b) |  | (0.8 | ) |  | 1.5 |
Change in Valuation Allowance (c) |  | 0.6 |  |  | — |
Investment Tax Credit Amortization |  | (0.2 | ) |  | (0.2 | )
Total Deferred Tax Expense |  | 8.3 |  |  | 8.1 |
Total Income Tax Expense |  | $8.3 |  | $8.2
(a) | For the quarter ended March 31, 2012, the federal and state current tax expense (benefit) of zero and zero, respectively, (zero and $0.1 million for the quarter ended March 31, 2011) is due to a net operating loss (NOL) which resulted primarily from the bonus depreciation provision of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The 2011 and 2012 federal and state NOLs will be carried forward to offset future taxable income.
(b) | The quarter ended March 31, 2011, includes a reversal of a $6.2 million deferred tax liability related to a revenue receivable that Minnesota Power agreed to forgo as part of a stipulation and settlement agreement in its 2010 rate case.
(c) | The increase in valuation allowance in 2012 is from renewable tax credits earned in 2012 which are not expected to be utilized within their allowable tax carryforward period.
NOTE 10. INCOME TAX EXPENSE (Continued) For the quarter ended March 31, 2012, the effective tax rate was 25.4 percent (18.1 percent for the quarter ended March 31, 2011; excluding the non-recurring income tax benefit from the reversal of the deferred tax liability related to a revenue receivable that Minnesota Power agreed to forgo as part of a stipulation and settlement agreement in its 2010 rate case, the effective tax rate for the quarter ended March 31, 2011, was 31.8 percent). The decrease (excluding the non-recurring item above) in the effective tax rate from March 31, 2011, was primarily due to increased renewable tax credits. The effective tax rate deviated from the statutory rate of approximately 41 percent primarily due to deductions for AFUDC – Equity, investment tax credits, renewable tax credits and depletion, and in 2011, for the non-recurring item discussed above. Uncertain Tax Positions. As of March 31, 2012, we had gross unrecognized tax benefits of $11.2 million. Of this total, $0.5 million represents the amount of unrecognized tax benefits included in the consolidated balance sheet, that, if recognized, would favorably impact the effective income tax rate. ALLETE's IRS exam for tax years 2005 through 2009 is currently awaiting review at the IRS appeals office. If the IRS appeals process is completed during the next twelve months, substantially all of the unrecognized tax benefits as of March 31, 2012, could be reversed. The unrecognized tax benefits are primarily due to tax positions which are timing in nature.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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