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Business Segments Business Segments (Notes) | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | BUSINESS SEGMENTS We present three reportable segments: Regulated Operations, ALLETE Clean Energy, and U.S. Water Services. We measure performance of our operations through budgeting and monitoring of contributions to consolidated net income by each business segment. Regulated Operations includes three operating segments which consist of our regulated utilities, Minnesota Power and SWL&P, as well as our investment in ATC. ALLETE Clean Energy is our business focused on developing, acquiring and operating clean and renewable energy projects. U.S. Water Services is our integrated water management company. 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 Energy, our coal mining operations in North Dakota, and ALLETE Properties, our legacy Florida real estate investment, along with our investment in Nobles 2, other business development and corporate expenditures, unallocated interest expense, a small amount of non-rate base generation, approximately 4,000 acres of land in Minnesota, and earnings on cash and investments. NOTE 17. BUSINESS SEGMENTS (Continued)
Year Ended December 31 | 2018 |  | 2017 |  | 2016 |
Millions |  |  |
Operating Revenue (a) |  |  |
Residential |  | $139.7 |  |  | $127.4 |  |  | $127.9 |
Commercial | 147.9 |  | 139.8 |  | 139.5 |
Municipal | 54.9 |  | 57.9 |  | 67.6 |
Industrial | 469.5 |  | 470.5 |  | 416.0 |
Other Power Suppliers | 170.3 |  | 161.8 |  | 175.1 |
CIP Financial Incentive | 3.0 |  | 5.5 |  | 7.5 |
Other | 74.2 |  | 100.9 |  | 67.1 |
Total Regulated Operations | 1,059.5 |  | 1,063.8 |  | 1,000.7 |
Energy Infrastructure and Related Services |  |  |
ALLETE Clean Energy |  |  |
Long-term PSA | 55.2 |  | 56.9 |  | 58.2 |
Sale of Wind Energy Facility | 81.1 |  | — |  | — |
Other | 23.6 |  | 23.6 |  | 22.3 |
Total ALLETE Clean Energy | 159.9 |  | 80.5 |  | 80.5 |
U.S. Water Services |  |  |
Point-in-time | 100.3 |  | 95.8 |  | 93.9 |
Contract | 38.3 |  | 36.2 |  | 30.4 |
Capital Project | 33.5 |  | 19.8 |  | 13.2 |
Total U.S. Water Services | 172.1 |  | 151.8 |  | 137.5 |
Corporate and Other |  |  |
Long-term Contract | 85.5 |  | 89.3 |  | 73.7 |
Other | 21.6 | 33.9 |  | 47.3 |
Total Corporate and Other | 107.1 | 123.2 | 121.0
Total Operating Revenue |  | $1,498.6 |  |  | $1,419.3 |  |  | $1,339.7 |
Net Income (Loss) Attributable to ALLETE (b)(c) |  |  |
Regulated Operations | $131.0 | $128.4 | $135.5
Energy Infrastructure and Related Services |  |  |
ALLETE Clean Energy (d) | 33.7 |  | 41.5 |  | 13.4 |
U.S. Water Services | 3.2 |  | 10.7 |  | 1.5 |
Corporate and Other (e) | 6.2 |  | (8.4 | ) | 4.9 |
Total Net Income Attributable to ALLETE | $174.1 | $172.2 | $155.3
(a) | With the adoption of new revenue recognition guidance, the Company has enhanced the presentation of business segment Operating Revenue. (See Note 1. Operations and Significant Accounting Policies.)
(b) Net income in 2017 included a favorable impact of $13.0 million after-tax due to the remeasurement of deferred income tax assets and liabilities resulting from the TCJA, which consisted of a $23.6 million after-tax benefit for ALLETE Clean Energy, a $9.2 million after-tax benefit for U.S. Water Services and a $19.8 million after-tax expense for Corporate and Other. The TCJA did not have an impact on net income for our Regulated Operations as the remeasurement of deferred income tax assets and liabilities primarily resulted in the recording of regulatory assets and liabilities. (See Note 1. Operations and Significant Accounting Policies and Note 4. Regulatory Matters.)
(c) | Includes interest expense resulting from intercompany loan agreements and allocated to certain subsidiaries. The amounts are eliminated in consolidation.
(d) | Net income in 2018 includes the recognition of profit for the sale of a wind energy facility to Montana-Dakota Utilities.
(e) | Net income in 2017 included a $7.9 million after-tax favorable impact for the regulatory outcome of the MPUC’s modification of tits November 2016 order on the allocation of North Dakota investment tax credits. Net income in 2016 included an $8.8 million after-tax adverse impact for the regulatory outcome of the November 2016 order.
NOTE 17. BUSINESS SEGMENTS (Continued)
Year Ended December 31 | 2018 |  | 2017 |  | 2016 |
Millions |  |  |
Depreciation and Amortization |  |  |
Regulated Operations |  | $158.0 |  |  | $132.6 |  |  | $154.3 |
Energy Infrastructure and Related Services |  |  |
ALLETE Clean Energy | 24.4 |  | 23.4 |  | 22.3 |
U.S. Water Services | 10.2 |  | 9.8 |  | 8.9 |
Corporate and Other | 13.0 |  | 11.7 |  | 10.3 |
Total Depreciation and Amortization |  | $205.6 |  |  | $177.5 |  |  | $195.8 |
Operating Expenses – Other (a) |  |  |
ALLETE Clean Energy | — |  | — |  |  | $3.3 |
Corporate and Other | $(2.0) | $(0.7) | (13.6 | )
Total Operating Expenses – Other | $(2.0) | $(0.7) | $(10.3)
Interest Expense (b) |  |  |
Regulated Operations |  | $60.2 |  |  | $57.0 |  |  | $52.1 |
Energy Infrastructure and Related Services |  |  |
ALLETE Clean Energy | 3.6 |  | 4.2 |  | 5.8 |
U.S. Water Services | 1.5 |  | 1.6 |  | 1.7 |
Corporate and Other | 7.3 |  | 10.3 |  | 14.5 |
Eliminations | (4.7 | ) | (5.3 | ) | (3.8 | )
Total Interest Expense |  | $67.9 |  |  | $67.8 |  |  | $70.3 |
Equity Earnings in ATC |  |  |
Regulated Operations |  | $17.5 |  |  | $22.5 |  |  | $18.5 |
Income Tax Expense (Benefit) (c) |  |  |
Regulated Operations (d) | $(15.5) |  | $27.2 |  |  | $5.9 |
Energy Infrastructure and Related Services |  |  |
ALLETE Clean Energy | (1.0 | ) | (14.2 | ) | 8.1 |
U.S. Water Services | 1.0 |  | (7.8 | ) | 1.4 |
Corporate and Other (d) | — |  | 9.5 |  | 4.4 |
Total Income Tax Expense (Benefit) | $(15.5) | $14.7 |  | $19.8 |
(a) | See Note 1. Operations and Significant Accounting Policies.
(b) | Includes interest expense resulting from intercompany loan agreements and allocated to certain subsidiaries. The amounts are eliminated in consolidation.
(c) | Income tax expense in 2017 included an income tax benefit of $13.0 million due to the remeasurement of deferred income tax assets and liabilities resulting from the TCJA, which consisted of income tax benefits of $23.6 million for ALLETE Clean Energy and $9.2 million for U.S. Water Services as well as additional income tax expense of $19.8 million for Corporate and Other. The TCJA did not have an impact on income tax expense for our Regulated Operations as the remeasurement of deferred income tax assets and liabilities primarily resulted in the recording of regulatory assets and liabilities. (See Note 1. Operations and Significant Accounting Policies and Note 4. Regulatory Matters.)
(d) | In 2017, Regulated Operations includes $14.0 million of income tax expense related to North Dakota investment tax credits transferred to Corporate and Other and higher pre-tax income for the favorable impact for the regulatory outcome of the MPUC’s modification of its November 2016 order on the allocation of North Dakota investment tax credits. There was no impact to net income for Regulated Operations. Corporate and Other recorded an offsetting income tax benefit of $7.9 million in 2017. In 2016, Regulated Operations includes $15.0 million of income tax benefit for North Dakota investment tax credits transferred from Corporate and Other and lower pre-tax income related to the adverse impact for the regulatory outcome of the November 2016 MPUC order. There was no impact to net income for Regulated Operations. Corporate and Other recorded an offsetting income tax expense of $8.8 million in 2016. (See Note 4. Regulatory Matters.)
NOTE 17. BUSINESS SEGMENTS (Continued)
As of December 31 | 2018 |  | 2017 |
Millions |  |
Assets |  |
Regulated Operations | $3,952.5 | $3,886.6
Energy Infrastructure and Related Services |  |
ALLETE Clean Energy | 606.6 |  | 600.5 |
U.S. Water Services | 295.8 |  | 292.4 |
Corporate and Other | 310.1 |  | 300.5 |
Total Assets |  | $5,165.0 |  |  | $5,080.0 |
Capital Expenditures |  |
Regulated Operations | $211.9 | $177.1
Energy Infrastructure and Related Services |  |
ALLETE Clean Energy | 89.7 |  | 56.1 |
U.S. Water Services | 5.0 |  | 4.4 |
Corporate and Other | 12.0 |  | 28.9 |
Total Capital Expenditures |  | $318.6 |  |  | $266.5 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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