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Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended
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Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract] |
Estimated Minimum Annual Payments for Certain Long-Term Commitments [Table Text Block] | The following table details the estimated minimum payments for certain long-term commitments:
As of December 31, 2018 |  |  |  |  |  |
Millions | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | Thereafter |
Coal, Rail and Shipping Contracts |  | $20.8 |  |  | $9.0 |  |  | $7.5 |  | — |  | — |  | — |
Operating Leases |  | $9.9 |  |  | $7.9 |  |  | $6.1 |  |  | $4.9 |  |  | $3.1 |  |  | $9.4 |
Easements |  | $4.8 |  |  | $4.9 |  |  | $4.9 |  |  | $5.0 |  |  | $5.1 |  |  | $136.3 |
Other (a) |  | $31.6 |  |  | $0.3 |  |  | $0.3 |  | — |  | — |  |  | $0.1 |
PPAs (b) |  | $107.3 |  |  | $115.3 |  |  | $145.4 |  |  | $145.7 |  |  | $145.8 |  |  | $1,550.7 |
(a) | Consists of long-term service agreements for wind energy facilities.
(b) | Does not include the agreement with Manitoba Hydro expiring in 2022, as this contract is for surplus energy only; Oliver Wind I and Oliver Wind II, as Minnesota Power only pays for energy as it is delivered; and the agreement with Nobles 2 commencing in 2020 as it is subject to construction of a wind energy facility. (See Power Purchase Agreements.)
Minnesota Power has also entered into the following PPAs for the purchase or sale of capacity and energy as of December 31, 2018:
Counterparty | Quantity | Product | Commencement | Expiration | Pricing
PPAs |  |  |  |  |
Calpine Corporation | 25 MW | Capacity | June 2019 | May 2026 | Fixed
Cypress Creek Renewables (a) | (a) | Capacity / Energy | (a) | (a) | Fixed
Great River Energy |  |  |  |  |
PPA 1 | 50 MW | Capacity / Energy | June 2016 | May 2020 | (b)
PPA 2 | 50 MW | Capacity | June 2016 | May 2020 | Fixed
PPA 3 | 50 MW | Capacity | June 2017 | May 2020 | Fixed
Manitoba Hydro |  |  |  |  |
PPA 1 | (c) | Energy | May 2011 | April 2022 | Forward Market Prices
PPA 2 | 50 MW | Capacity / Energy | June 2015 | May 2020 | (d)
PPA 3 | 50 MW | Capacity | June 2017 | May 2020 | Fixed
PPA 4 (e) | 250 MW | Capacity / Energy | June 2020 | May 2035 | (f)
PPA 5 (e) | 133 MW | Energy | (g) | (g) | Forward Market Prices
Minnkota Power | 50 MW | Capacity / Energy | June 2016 | May 2020 | (h)
Nobles 2 (i) | (i) | Capacity / Energy | (i) | (i) | Fixed
Oliver Wind I | (j) | Energy | December 2006 | December 2040 | Fixed
Oliver Wind II | (j) | Energy | December 2007 | December 2040 | Fixed
Shell Energy | 50 MW | Energy | January 2017 | December 2019 | Fixed
TransAlta | (k) | Energy | January 2017 | December 2019 | Fixed
(a) | The PPA provides for the purchase of all output from the 10 MW Blanchard solar energy facility to be located in central Minnesota. Construction of the Blanchard solar energy facility is expected to be completed in 2020 and the contract is effective for 25 years beginning upon commercial operation.
(b) | The capacity price is fixed and the energy price is based on a formula that includes an annual fixed price component adjusted for changes in a natural gas index, as well as market prices.
(c) | The energy purchased consists primarily of surplus hydro energy on Manitoba Hydro's system and is delivered on a non-firm basis. Minnesota Power will purchase at least one million MWh of energy over the contract term.
(d) | The capacity and energy prices are adjusted annually by the change in a governmental inflationary index.
(e) | Agreements are subject to the construction of the GNTL and MMTP. (See Great Northern Transmission Line.)
(f) | The capacity price is adjusted annually until 2020 by the change in a governmental inflationary index. The energy price is based on a formula that includes an annual fixed component adjusted for the change in a governmental inflationary index and a natural gas index, as well as market prices.
(g) | The contract term will be the 20-year period beginning on the in-service date for the GNTL. (See Great Northern Transmission Line.)
(h) | The agreement includes a fixed capacity charge and energy prices that escalate at a fixed rate annually over the term.
(i) | The PPA provides for the purchase of all output from a 250 MW wind energy facility to be constructed in southwest Minnesota for 20 years beginning upon commercial operation of the wind energy facility which is currently expected in fourth quarter of 2020. (See Note 4. Regulatory Matters and Note 5. Equity Investments.)
(j) | The PPAs provide for the purchase of all output from the 50 MW Oliver Wind I and 48 MW Oliver Wind II wind energy facilities.
(k) | Minnesota Power is purchasing 50 MW of energy during off-peak hours and 100 MW of energy during on-peak hours.
Minnesota Power has also entered into the following PSAs for the purchase or sale of capacity and energy as of December 31, 2018:
Counterparty | Quantity | Product | Commencement | Expiration | Pricing
PSAs |  |  |  |  |
Basin |  |  |  |  |
PSA 1 | 100 MW | Capacity / Energy | May 2010 | April 2020 | (a)
PSA 2 | 50 MW | Capacity | June 2017 | May 2019 | Fixed
PSA 3 | (b) | Capacity | June 2022 | May 2025 | Fixed
PSA 4 | 100 MW | Capacity | June 2025 | May 2028 | Fixed
Minnkota Power | (c) | Capacity / Energy | June 2014 | December 2026 | (c)
Oconto Electric Cooperative | 25 MW | Capacity / Energy | January 2019 | May 2026 | Fixed
Silver Bay Power | (d) | Energy | January 2017 | December 2031 | (e)
(a) | The capacity charge is based on a fixed monthly schedule with a minimum annual escalation provision. The energy charge is based on a fixed monthly schedule and provides for annual escalation based on the cost of fuel. The agreement also allows Minnesota Power to recover a pro rata share of increased costs related to emissions that occur during the last five years of the contract.
(b) | The agreement provides for 75 MW of capacity from June 1, 2022, through May 31, 2023, and increases to 125 MW of capacity from June 1, 2023, through May 31, 2025.
(c) | Minnesota Power is selling a portion of its entitlement from Square Butte to Minnkota Power, resulting in Minnkota Power’s net entitlement increasing and Minnesota Power’s net entitlement decreasing until Minnesota Power’s share is eliminated at the end of 2025. Of Minnesota Power’s 50 percent output entitlement, it sold to Minnkota Power approximately 28 percent in 2018 (28 percent in 2017 and in 2016). (See Square Butte PPA.)
(d) | Silver Bay Power supplies approximately 90 MW of load to Northshore Mining, an affiliate of Silver Bay Power, which has been served predominately through self-generation by Silver Bay Power. Through 2019, Minnesota Power will supply Silver Bay Power with at least 50 MW of energy and Silver Bay Power has the option to purchase additional energy. By December 31, 2019, Silver Bay Power is expected to cease self-generation and Minnesota Power is expected to supply the energy requirements for Silver Bay Power.
(e) | The energy pricing is fixed through 2019 with pricing in later years escalating at a fixed rate annually and adjusted for changes in a natural gas index.

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- Definition Tabular disclosure of unconditional purchase obligations that are not recognized as a liability on the balance sheet, including the nature and significant terms of an unconditional purchase obligation; the amount of the fixed and determinable portion of the obligation as of the date of the latest balance sheet presented in the aggregate and, if determinable, for each of the five succeeding fiscal years; the nature of any variable components of the obligation; the amount purchased under the obligation (for example, the take-or-pay or throughput contract) for the reporting period; and may include the amount of imputed interest necessary to reduce the obligation to present value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=77896938&loc=d3e25336-109308 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=77896938&loc=d3e25287-109308 + Details
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