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Investment in ATC | 12 Months Ended
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Dec. 31, 2014
Investment in ATC [Abstract] |
Investment in ATC [Text Block] | INVESTMENT IN ATC Our wholly-owned subsidiary, Rainy River Energy, owns approximately 8 percent of ATC, a Wisconsin-based utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. ATC rates are based on a FERC-approved 12.2 percent return on common equity dedicated to utility plant. We account for our investment in ATC under the equity method of accounting. As of December 31, 2014, our equity investment in ATC was $121.1 million ($114.6 million at December 31, 2013). On January 29, 2015, we invested an additional $0.4 million in ATC. In total, we expect to invest approximately $1.9 million throughout 2015.
ALLETE’s Investment in ATC |  |
Year Ended December 31 | 2014 |  | 2013 |
Millions |  |
Equity Investment Beginning Balance |  | $114.6 |  |  | $107.3 |
Cash Investments | 3.9 |  | 3.1 |
Equity in ATC Earnings | 19.6 |  | 20.3 |
Distributed ATC Earnings | (17.0 | ) | (16.1 | )
Equity Investment Ending Balance |  | $121.1 |  |  | $114.6 |
NOTE 6. INVESTMENT IN ATC (Continued)
ATC Summarized Financial Data |  |
Balance Sheet Data |  |
As of December 31 | 2014 |  | 2013 |
Millions |  |
Current Assets |  | $66.4 |  |  | $80.7 |
Non-Current Assets | 3,728.7 |  | 3,509.5 |
Total Assets |  | $3,795.1 |  |  | $3,590.2 |
Current Liabilities |  | $313.1 |  |  | $381.4 |
Long-Term Debt | 1,701.0 |  | 1,550.0 |
Other Non-Current Liabilities | 163.8 |  | 126.2 |
Members’ Equity | 1,617.2 |  | 1,532.6 |
Total Liabilities and Members’ Equity |  | $3,795.1 |  |  | $3,590.2 |
Income Statement Data |  |  |
Year Ended December 31 | 2014 |  | 2013 |  | 2012 |
Millions |  |  |
Revenue |  | $635.0 |  |  | $626.3 |  |  | $603.2 |
Operating Expense | 307.4 |  | 295.1 |  | 281.0 |
Other Expense | 88.9 |  | 83.6 |  | 84.8 |
Net Income |  | $238.7 |  |  | $247.6 |  |  | $237.4 |
ALLETE’s Equity in Net Income |  | $19.6 |  |  | $20.3 |  |  | $19.4 |
In November 2013, several customer groups located within the MISO service area filed a complaint with the FERC requesting, among other things, a reduction in the base return on equity used by MISO transmission owners, including ATC, to 9.15 percent. ATC's current authorized return on equity is 12.2 percent. In the fourth quarter of 2014, FERC ordered formal hearing proceedings to begin and established a date for potential refunds from November 12, 2013. An initial decision in the complaint is expected by November 30, 2015. In the fourth quarter of 2014, ATC recorded approximately an $18 million refund liability as ATC believes that it is probable that a refund will be required upon ultimate resolution of this matter. The refund liability is subject to adjustment in future periods if assumptions in the estimate change. ATC’s refund liability negatively impacted our Equity Earnings in ATC by approximately $1 million after-tax in 2014. We own approximately 8 percent of ATC and estimate that for every 50 basis point reduction in ATC’s allowed return on equity our equity earnings in ATC would be impacted annually by approximately $0.5 million on an after-tax basis.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + 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 210.5-02.12) -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 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32787-111569 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32847-111569 + Details
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