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Business Segments
 9 Months Ended
Sep. 30, 2015
Business Segments [Abstract]  
Business Segments [Text Block]
BUSINESS SEGMENTS

During the quarter ended September 30, 2015, management updated our reportable segment presentation to reflect the manner in which we operate, assess, and allocate resources after our recent acquisitions. We will now present three reportable segments, Regulated Operations, ALLETE Clean Energy, and U.S. Water Services. Prior period amounts have been revised to conform with the current business segment presentation.

Regulated Operations includes three operating segments which consist of our regulated utilities, Minnesota Power and SWL&P, as well as our investment in ATC, a Wisconsin-based regulated utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. ALLETE Clean Energy is our business aimed at acquiring or developing capital projects that create energy solutions by way of wind, solar, biomass, hydro, natural gas, shale resources, clean coal technology and other emerging energy innovations. U.S. Water Services is our integrated water management company which was acquired on February 10, 2015. The ALLETE Clean Energy and U.S. Water Services reportable segments comprise our Energy Infrastructure and Related Services businesses. We also present Corporate and Other which includes two operating segments, BNI Coal, our coal mining operations in North Dakota, and ALLETE Properties, our Florida real estate investment, along with other business development and corporate expenditures, unallocated interest expense, a small amount of non-rate base generation, approximately 5,000 acres of land in Minnesota, and earnings on cash and investments.

NOTE 2.  BUSINESS SEGMENTS (Continued)

 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2015
2014
 
2015
2014
Millions
 
 
 
 
 
Operating Revenue
 
 
 
 
 
Regulated Operations
$250.2
$255.8
 
$743.0
$749.6
 
 
 
 
 
 
Energy Infrastructure and Related Services
 
 
 
 
 
ALLETE Clean Energy
151.1

6.8

 
197.5

22.6

U.S. Water Services
36.1

—

 
86.0

—

 
 
 
 
 
 
Corporate and Other
25.1

26.3

 
79.3

73.9

Total Operating Revenue

$462.5


$288.9

 

$1,105.8


$846.1

Net Income (Loss) Attributable to ALLETE
 
 
 
 
 
Regulated Operations (a)

$43.8


$40.9

 

$108.1


$91.6

 
 
 
 
 
 
Energy Infrastructure and Related Services
 
 
 
 
 
ALLETE Clean Energy
13.2

0.5

 
18.7

1.2

U.S. Water Services
1.0

—

 
1.5

—

 
 
 
 
 
 
Corporate and Other (a)
2.4

0.2

 
(5.5
)
(0.9
)
Total Net Income Attributable to ALLETE

$60.4


$41.6

 

$122.8


$91.9

(a)
During the third quarter of 2015, the Company entered into an intercompany loan agreement, and allocated long-term debt to ALLETE Transmission Holdings, which owns approximately 8 percent of ATC, to better reflect the capital requirements of ALLETE Transmission Holdings and our investment in ATC. ALLETE Transmission Holdings recognized interest expense of approximately $0.3 million after-tax in the third quarter of 2015 which is reflected in our Regulated Operations segment. Our Corporate and Other segment recognized interest income of the same amount. The amounts are eliminated in consolidation. Prior period segment results have been revised to conform to the current presentation as if the intercompany loan existed as of January 1, 2014.

As of September 30,
2015

2014

Millions
 
 
Assets
 
 
Regulated Operations
$3,836.3
$3,519.9
 
 
 
Energy Infrastructure and Related Services
 
 
ALLETE Clean Energy
565.7

184.4

U.S. Water Services
257.8

—

 
 
 
Corporate and Other
272.0

363.6

Total Assets

$4,931.8


$4,067.9