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Short-term and Long-term Debt | 12 Months Ended
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Dec. 31, 2012
Short-Term and Long-Term Debt [Abstract] |
Short-Term and Long-Term Debt [Text Block] | SHORT-TERM AND LONG-TERM DEBT Short-Term Debt. Total short-term debt outstanding as of December 31, 2012, was $84.5 million ($6.5 million at December 31, 2011) and consisted of long-term debt due within one year and notes payable. As of December 31, 2012, short-term debt increased from December 31, 2011, primarily due to $60.0 million of long-term debt maturing in April 2013. As of December 31, 2012, we had bank lines of credit aggregating $406.4 million ($256.4 million at December 31, 2011), of which $150.0 million expires in January 2014, and $250.0 million expires in June 2015. These bank lines of credit are available to provide short-term bank loans and liquidity support for ALLETE’s commercial paper program and to issue up to $50.0 million in letters of credit. We had no outstanding draws on our lines of credit as of December 31, 2012 ($1.1 million at December 31, 2011). On February 1, 2012, ALLETE entered into a $150.0 million credit agreement (Agreement) with JPMorgan Chase Bank, N.A., as administrative agent, and several other lenders that are parties thereto. The Agreement is unsecured and has a maturity date of January 31, 2014, which may be extended for one year, subject to bank approvals. Advances under the Agreement may be used for general corporate purposes, to provide liquidity support for ALLETE’s commercial paper program and to issue up to $10.0 million in letters of credit. Long-Term Debt. Total long-term debt outstanding as of December 31, 2012, was $933.6 million ($857.9 million at December 31, 2011). The aggregate amount of long-term debt maturing during 2013 is $84.5 million ($94.8 million in 2014; $17.4 million in 2015; $21.7 million in 2016; $51.2 million in 2017; and $748.5 million thereafter). Substantially all of our electric plant is subject to the lien of the mortgage collateralizing outstanding first mortgage bonds. The mortgages contain non-financial covenants customary in utility mortgages, including restrictions on our ability to incur liens, dispose of assets, and merge with other entities. On July 2, 2012, we issued $160.0 million of the Company’s First Mortgage Bonds (Bonds) in the private placement market in two series as follows:
Issue Date | Maturity Date | Principal Amount | Interest Rate
July 2, 2012 | July 15, 2026 | $75 Million | 3.20%
July 2, 2012 | July 15, 2042 | $85 Million | 4.08%
We have the option to prepay all or a portion of the 3.20 percent Bonds at our discretion at any time prior to January 15, 2026, subject to a make-whole provision, and at any time on or after January 15, 2026, at par, including, in each case, accrued and unpaid interest. We also have the option to prepay all or a portion of the 4.08 percent Bonds at our discretion at any time prior to January 15, 2042, subject to a make-whole provision, and at any time on or after January 15, 2042, at par, including, in each case, accrued and unpaid interest. The Bonds are subject to the additional terms and conditions of our utility mortgage. In July 2012, we used a portion of the proceeds from the sale of the Bonds to redeem $6.0 million of our 6.50 percent Industrial Development Revenue Bonds and to repay $14.0 million in outstanding borrowings on our $150.0 million line of credit. The remaining proceeds were used to fund utility capital expenditures and for general corporate purposes. The Bonds were sold in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, to certain institutional accredited investors. NOTE 10. SHORT-TERM AND LONG-TERM DEBT (Continued)
Long-Term Debt |  |
As of December 31 | 2012 | 2011
Millions |  |
First Mortgage Bonds |  |
4.86% Series Due 2013 |  | $60.0 |  |  | $60.0 |
6.94% Series Due 2014 | 18.0 |  | 18.0 |
7.70% Series Due 2016 | 20.0 |  | 20.0 |
8.17% Series Due 2019 | 42.0 |  | 42.0 |
5.28% Series Due 2020 | 35.0 |  | 35.0 |
4.85% Series Due 2021 | 15.0 |  | 15.0 |
4.95% Pollution Control Series F Due 2022 | 111.0 |  | 111.0 |
6.02% Series Due 2023 | 75.0 |  | 75.0 |
4.90% Series Due 2025 | 30.0 |  | 30.0 |
5.10% Series Due 2025 | 30.0 |  | 30.0 |
3.20% Series Due 2026 | 75.0 |  | — |
5.99% Series Due 2027 | 60.0 |  | 60.0 |
5.69% Series Due 2036 | 50.0 |  | 50.0 |
6.00% Series Due 2040 | 35.0 |  | 35.0 |
5.82% Series Due 2040 | 45.0 |  | 45.0 |
4.08% Series Due 2042 | 85.0 |  | — |
SWL&P First Mortgage Bonds 7.25% Series Due 2013 | 10.0 |  | 10.0 |
Senior Unsecured Notes 5.99% Due 2017 | 50.0 |  | 50.0 |
Variable Demand Revenue Refunding Bonds Series 1997 A, B, and C Due 2013 – 2020 | 27.5 |  | 28.2 |
Industrial Development Revenue Bonds 6.5% Due 2025 | — |  | 6.0 |
Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006 Due 2025 | 27.8 |  | 27.8 |
Unsecured Term Loan Variable Rate Due 2014 | 75.0 |  | 75.0 |
Other Long-Term Debt, 1.0% – 8.0% Due 2013 – 2037 | 41.8 |  | 40.3 |
Total Long-Term Debt | 1,018.1 |  | 863.3 |
Less: Due Within One Year | 84.5 |  | 5.4 |
Net Long-Term Debt |  | $933.6 |  |  | $857.9 |
Financial Covenants. Our long-term debt arrangements contain customary covenants. In addition, our lines of credit and letters of credit supporting certain long-term debt arrangements contain financial covenants. Our compliance with financial covenants is not dependent on debt ratings. The most restrictive covenant requires ALLETE to maintain a ratio of its Indebtedness to Total Capitalization (as the amounts are calculated in accordance with the respective long-term debt arrangements) of less than or equal to 0.65 to 1.00 measured quarterly. As of December 31, 2012, our ratio was approximately 0.46 to 1.00. Failure to meet this covenant would give rise to an event of default if not cured after notice from the lender, in which event ALLETE may need to pursue alternative sources of funding. Some of ALLETE’s debt arrangements contain “cross-default” provisions that would result in an event of default if there is a failure under other financing arrangements to meet payment terms or to observe other covenants that would result in an acceleration of payments due. As of December 31, 2012, ALLETE was in compliance with its financial covenants.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -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. + Details
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