Operations and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Statement of Cash Flow Information [Table Text Block]

Supplemental Statement of Cash Flow Information.



Consolidated Statement of Cash Flows
Year Ended December 31	2017		2016		2015
Millions
Cash Paid During the Period for Interest – Net of Amounts Capitalized		$64.5		$68.2		$59.0
Cash Paid During the Period for Income Taxes		$0.4		$0.5		$0.4
Remeasurement of Deferred Income Taxes Resulting from the TCJA
Increase in Regulatory Assets		$80.9	—		—
Decrease in Investment in ATC	$(27.9)		—		—
Decrease in Deferred Income Taxes	$(353.6)		—		—
Increase in Regulatory Liabilities		$393.6	—		—
Noncash Investing and Financing Activities
Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment	$67.2		$(22.0)		$(40.6)
Capitalized Asset Retirement Costs	$(15.6)			$3.7	$12.4
Camp Ripley Solar Financing	—		$15.0		—
AFUDC–Equity		$1.2		$2.1		$3.3
ALLETE Common Stock Contributed to Pension Plans		$13.5	—		—
Contingent Consideration	—		—			$35.7
ALLETE Common Stock Received for Land Inventory	—			$8.0	—
Long-Term Finance Receivable for Land Inventory	—			$12.0	—

Accounts Receivable [Table Text Block]



Accounts Receivable
As of December 31	2017		2016
Millions
Trade Accounts Receivable
Billed		$112.6		$106.5
Unbilled	24.6		19.1
Less: Allowance for Doubtful Accounts	2.1		3.1
Total Accounts Receivable		$135.1		$122.5

Inventories – Net [Table Text Block]



Inventories – Net
As of December 31	2017			2016
Millions
Fuel (a)		$34.8			$43.9
Materials and Supplies	46.5			48.7
Raw Materials	2.8			2.9
Work in Progress	4.2			1.0
Finished Goods	8.3			8.6
Reserve for Obsolescence	(0.7		)	(0.9		)
Total Inventories – Net		$95.9			$104.2


(a)	Fuel consists primarily of coal inventory at Minnesota Power.

Prepayments and Other Current Assets [Table Text Block]



Prepayments and Other Current Assets
As of December 31	2017		2016
Millions
Deferred Fuel Adjustment Clause (a)	—			$18.6
Restricted Cash (b)		$2.6	2.2
Other	35.0		19.5
Total Prepayments and Other Current Assets		$37.6		$40.3


(a)	At a hearing on January 18, 2018, the MPUC disallowed recovery of Minnesota Power’s regulatory asset for deferred fuel adjustment clause costs resulting in a $19.5 million pre-tax charge to Fuel, Purchased Power and Gas – Utility in 2017.


(b)	Restricted Cash includes collateral deposits required under an ALLETE Clean Energy loan agreement and collateral deposits required for U.S. Water Services’ standby letters of credit.

Other Non-Current Assets [Table Text Block]



Other Non-Current Assets
As of December 31	2017		2016
Millions
Contract Payment (a)		$27.5		$29.6
Finance Receivable (b)	11.0		11.5
Restricted Cash (c)	8.6		8.6
Other	60.6		56.8
Total Other Non-Current Assets		$107.7		$106.5


(a)	Contract Payment includes a payment made to Cliffs as part of a long-term PSA between Minnesota Power and Silver Bay Power. The contract payment is being amortized over the term of the PSA. (See Note 11. Commitments, Guarantees and Contingencies.)

(b)

In 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 an ALLETE Clean Energy loan agreement and PSAs, and deposits from SWL&P customers in aid of future capital expenditures.

Other Current Liabilities [Table Text Block]



Other Current Liabilities
As of December 31	2017		2016
Millions
PSAs		$24.5		$24.6
Other	58.7		49.1
Total Other Current Liabilities		$83.2		$73.7

Other Non-Current Liabilities [Table Text Block]



Other Non-Current Liabilities
As of December 31	2017		2016
Millions
Asset Retirement Obligation		$122.7		$136.6
PSAs	89.5		113.8
Contingent Consideration (a)	5.4		25.0
Other	49.5		47.3
Total Other Non-Current Liabilities		$267.1		$322.7


(a)	Contingent Consideration relates to the estimated fair value of the earnings-based payment resulting from the U.S. Water Services acquisition. (See Note 6. Acquisitions and Note 9. Fair Value.)

Operating Expenses – Other [Table Text Block]



Operating Expenses – Other
Year Ended December 31	2017	2016			2015
Millions
Impairment of Real Estate (a)	—	—				$36.3
Impairment of Goodwill (b)	—		$3.3		—
Change in Fair Value of Contingent Consideration (c)	$(0.7)	(13.6		)	—
Total Operating Expenses – Other	$(0.7)	$(10.3)				$36.3


(a)	See Impairment of Long-Lived Assets.


(b)	See Goodwill and Intangible Assets.


(c)	See Note 9. Fair Value.