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Operations and Significant Accounting Policies | 9 Months Ended
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Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Operations and Significant Accounting Policies [Text Block] | OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Inventories. Inventories are stated at the lower of cost or market. Inventories in our Regulated Operations and ALLETE Clean Energy segments are carried at an average cost or first-in, first-out basis. Inventories in our U.S. Water Services and Corporate and Other segments are carried at an average cost, first-in, first-out or specific identification basis.
Inventories | September 30, 2016 |  |  | December 31, 2015 |
Millions |  |  |
Fuel (a) |  | $45.9 |  |  |  | $58.1 |
Materials and Supplies | 49.8 |  |  | 49.1 |
Raw Materials | 3.3 |  |  | 2.7 |
Work in Progress | 1.1 |  |  | — |
Finished Goods | 7.8 |  |  | 7.5 |
Reserve for Obsolescence | (0.5 | ) |  | (0.3 | )
Total Inventories |  | $107.4 |  |  |  | $117.1 |
(a) | Fuel consists primarily of coal inventory at Minnesota Power.
Prepayments and Other Current Assets | September 30, 2016 |  |  | December 31, 2015 |
Millions |  |  |
Deferred Fuel Adjustment Clause |  | $16.8 |  |  |  | $10.6 |
Restricted Cash (a) | 7.0 |  |  | 5.6 |
Other | 15.1 |  |  | 19.5 |
Total Prepayments and Other Current Assets |  | $38.9 |  |  |  | $35.7 |
(a) | Restricted Cash includes collateral deposits required under ALLETE Clean Energy’s loan agreements and cash pledged as collateral for U.S. Water Services’ standby letters of credit.
Other Non-Current Assets | September 30, 2016 |  |  | December 31, 2015 |
Millions |  |  |
Contract Payment (a) |  | $30.1 |  |  | — |
Finance Receivable (b) | 11.6 |  |  | — |
Restricted Cash (c) | 4.6 |  |  |  | $8.1 |
Other | 60.2 |  |  | 60.0 |
Total Other Non-Current Assets |  | $106.5 |  |  |  | $68.1 |
(a) | Contract Payment includes a $31.0 million payment made to Cliffs as part of a long-term power sales agreement between Minnesota Power and Silver Bay Power. The contract payment will be amortized over the term of the sales agreement. (See Note 13. Commitments, Guarantees and Contingencies.)
(b) | On September 22, 2016, ALLETE Properties sold its Ormond Crossings project and Lake Swamp wetland mitigation bank for consideration of approximately $21 million. The consideration included a down payment in the form of 0.1 million shares of ALLETE common stock with a value of $8.0 million. The remaining purchase price will be paid under the terms of a finance receivable due over a five-year period which bears interest at market rates and is collateralized by the property sold.
(c) | Restricted Cash includes collateral deposits required under ALLETE Clean Energy’s loan agreements and PPAs.
NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other Current Liabilities | September 30, 2016 |  |  | December 31, 2015 |
Millions |  |  |
Customer Deposits |  | $9.0 |  |  |  | $15.1 |
Power Purchase Agreements | 24.3 |  |  | 23.3 |
Other | 60.3 |  |  | 47.7 |
Total Other Current Liabilities |  | $93.6 |  |  |  | $86.1 |
Other Non-Current Liabilities | September 30, 2016 |  |  | December 31, 2015 |
Millions |  |  |
Asset Retirement Obligation |  | $136.5 |  |  |  | $131.4 |
Power Purchase Agreements | 119.8 |  |  | 138.1 |
Contingent Consideration (a) | 37.9 |  |  | 36.6 |
Other | 41.7 |  |  | 42.9 |
Total Other Non-Current Liabilities |  | $335.9 |  |  |  | $349.0 |
(a) | Contingent Consideration relates to the estimated fair value of the earnings-based payment resulting from the U.S. Water Services acquisition. (See Note 3. Acquisitions and Note 5. Fair Value.)
Supplemental Statement of Cash Flows Information.
Nine Months Ended September 30, | 2016 |  |  | 2015 |
Millions |  |  |
Cash Paid During the Period for Interest – Net of Amounts Capitalized |  | $54.9 |  |  |  | $46.6 |
Cash Paid During the Period for Income Taxes |  | $0.5 |  |  |  | $0.1 |
Noncash Investing and Financing Activities |  |  |  |  |
Decrease in Accounts Payable for Capital Additions to Property, Plant and Equipment | $(19.5) |  | $(26.8)
Capitalized Asset Retirement Costs |  | $3.7 |  |  |  | $7.8 |
AFUDC–Equity |  | $1.7 |  |  |  | $2.6 |
Contingent Consideration | — |  |  |  | $35.7 |
ALLETE Common Stock Received for Land Inventory |  | $8.0 |  |  | — |
Long-Term Finance Receivable for Land Inventory |  | $12.0 |  |  | — |
Subsequent Events. The Company performed an evaluation of subsequent events for potential recognition and disclosure through the time of the financial statements issuance. New Accounting Standards. Amendments to the Consolidation Analysis. In February 2015, the FASB issued revised guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new standard affects (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance was adopted in the first quarter of 2016 and did not have a material impact on our Consolidated Financial Statements. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). In May 2015, the FASB issued an accounting standard update which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share (or its equivalent) practical expedient. The guidance applies to investments for which there is not a readily determinable fair value (market quote) or the investment is in a mutual fund without a publicly available net asset value. This guidance was adopted in the first quarter of 2016 and did not have a material impact on our Consolidated Financial Statements. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) New Accounting Standards (Continued) Presentation of Debt Issuance Costs. In April 2015, the FASB issued revised guidance addressing the presentation requirements for debt issuance costs. Under the revised guidance, all costs incurred to issue debt are to be presented on the Consolidated Balance Sheet as a direct deduction from the carrying amount of that debt liability. This guidance was adopted in the first quarter of 2016 resulting in the reclassification of unamortized debt issuance costs from Other Non-Current Assets to Long-Term Debt on the Consolidated Balance Sheet. The effect of the adoption decreased Total Assets and Total Liabilities on the Consolidated Balance Sheet by $12.6 million as of December 31, 2015. Revenue from Contracts with Customers. In May 2014, the FASB issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required regarding customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The guidance is effective for the Company beginning in the first quarter of 2018 with early adoption permitted. The Company is evaluating the impact of the amended revenue recognition guidance on the Company’s Consolidated Financial Statements. Leases. In February 2016, the FASB issued an accounting standard update which revises the existing guidance for leases. Under the revised guidance, lessees will be required to recognize a “right-of-use” asset and a lease liability for all leases with a term greater than 12 months. The new standard also requires additional quantitative and qualitative disclosures by lessees and lessors to enable users of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The accounting for leases by lessors and the recognition, measurement and presentation of expenses and cash flows from leases are not expected to significantly change as a result of the updated guidance. The revised guidance is effective for the Company beginning in the first quarter of 2019 with early adoption permitted. The Company is evaluating the impact of the amended lease guidance on the Company’s Consolidated Financial Statements. Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued guidance to simplify the accounting for share-based payment transactions by requiring all excess tax benefits and deficiencies to be recognized in income tax expense or benefit in earnings; thus, eliminating the requirement to classify the excess tax benefit and deficiencies as additional paid-in capital. Under the new guidance, an entity makes an accounting policy election to either estimate the expected forfeiture awards or account for forfeitures as they occur. This accounting guidance is effective for the Company beginning in the first quarter of 2017. The Company is evaluating the impact of the share-based payment guidance on the Company’s Consolidated Financial Statements. Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued an accounting standard update which addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This accounting guidance is effective for the Company beginning in the first quarter of 2018. The Company does not believe the guidance will have a material impact on its Consolidated Financial Statements.

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