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Short-Term and Long-Term Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Short-Term and Long-Term Debt [Text Block] SHORT-TERM AND LONG-TERM DEBT
Short-Term Debt. As of December 31, 2021, total short-term debt outstanding was $214.2 million ($203.7 million as of December 31, 2020), and consisted of long-term debt due within one year and included $0.2 million of unamortized debt issuance costs.

As of December 31, 2021, we had consolidated bank lines of credit aggregating $432.0 million ($407.0 million as of December 31, 2020), most of which expire in January 2025. We had $31.5 million outstanding in standby letters of credit and $159.7 million outstanding draws under our lines of credit as of December 31, 2021 ($22.3 million in standby letters of credit and no outstanding draws as of December 31, 2020).
NOTE 7. SHORT-TERM AND LONG-TERM DEBT (Continued)

Long-Term Debt. As of December 31, 2021, total long-term debt outstanding was $1,763.2 million ($1,593.2 million as of December 31, 2020) and included $8.8 million of unamortized debt issuance costs. The aggregate amount of long-term debt maturing in 2022 is $214.5 million; $89.7 million in 2023; $74.4 million in 2024; $386.7 million in 2025; $77.2 million in 2026; and $1,143.9 million thereafter. Substantially all of our regulated electric plant is subject to the lien of the mortgages collateralizing outstanding first mortgage bonds. The mortgages contain non-financial covenants customary in utility mortgages, including restrictions on our ability to incur liens, dispose of assets, and merge with other entities.

Minnesota Power is obligated to make financing payments for the Camp Ripley solar array totaling $1.4 million annually during the financing term, which expires in 2027. Minnesota Power has the option at the end of the financing term to renew for a two‑year term, or to purchase the solar array for approximately $4 million. Minnesota Power anticipates exercising the purchase option when the term expires.

On March 25, 2021, ALLETE entered into a $150 million unsecured term loan agreement (Term Loan). An additional draw of $35 million through the exercise of an accordion feature was made during the second quarter of 2021. As of September 30, 2021, we have borrowed the full amount of $185 million. The Term Loan is due March 24, 2022, and may be repaid at any time. Interest is payable monthly at a rate per annum equal to LIBOR plus 0.75 percent. Proceeds from the Term Loan were used for general corporate purposes.

On September 1, 2021, ALLETE issued $100 million of its First Mortgage Bonds (Bonds) to certain institutional buyers in the private placement market. The Bonds, which bear interest at 2.79 percent, will mature in September 2031 and pay interest semi-annually in March and September of each year, commencing on March 1, 2022. ALLETE has the option to prepay all or a portion of the Bonds at its discretion, subject to a make-whole provision. The Bonds are subject to additional terms and conditions which are customary for these types of transactions. Proceeds from the sale of the Bonds were used to fund utility capital investment and for general corporate purposes. The Bonds were sold in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, to institutional accredited investors.

In January 2022, ALLETE Clean Energy received approximately $183.0 million from final closing of tax equity funding for the Caddo wind energy facility. The proceeds from the funding were used to pay down a portion of outstanding draws on our lines of credit.
NOTE 7. SHORT-TERM AND LONG-TERM DEBT (Continued)
Long-Term Debt (Continued)

Long-Term Debt  
As of December 3120212020
Millions  
First Mortgage Bonds
4.85% Series Due 2021—$15.0
3.02% Series Due 2021—60.0
3.40% Series Due 2022$75.075.0
6.02% Series Due 202375.075.0
3.69% Series Due 202460.060.0
4.90% Series Due 202530.030.0
5.10% Series Due 202530.030.0
3.20% Series Due 202675.075.0
5.99% Series Due 202760.060.0
3.30% Series Due 202840.040.0
4.08% Series Due 202970.070.0
3.74% Series Due 202950.050.0
2.50% Series Due 203046.046.0
3.86% Series Due 203060.060.0
2.79% Series Due 2031100.0—
5.69% Series Due 203650.050.0
6.00% Series Due 204035.035.0
5.82% Series Due 204045.045.0
4.08% Series Due 204285.085.0
4.21% Series Due 204360.060.0
4.95% Series Due 204440.040.0
5.05% Series Due 204440.040.0
4.39% Series Due 204450.050.0
4.07% Series Due 204860.060.0
4.47% Series Due 204930.030.0
3.30% Series Due 205094.094.0
ALLETE Clean Energy Unsecured Term Loan Variable Rate Due 2021—65.0
Armenia Mountain Senior Secured Notes 3.26% Due 202429.138.6
Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 202527.827.8
Revolving Credit Facility Variable Rate Due 2025145.0—
Senior Unsecured Notes 2.65% Due 2025150.0150.0
Senior Unsecured Notes 3.11% Due 202780.080.0
SWL&P First Mortgage Bonds 4.15% Series Due 202815.015.0
SWL&P First Mortgage Bonds 4.14% Series Due 204812.012.0
Unsecured Term Loan Variable Rate Due 2021—40.0
Unsecured Term Loan Variable Rate Due 2022110.0—
Other Long-Term Debt, 2.16% – 4.58% Due 2022 – 205157.543.0
Unamortized Debt Issuance Costs(9.0)(9.5)
Total Long-Term Debt1,977.41,796.9
Less: Due Within One Year214.2203.7
Net Long-Term Debt$1,763.2$1,593.2
NOTE 7. SHORT-TERM AND LONG-TERM DEBT (Continued)
Long-Term Debt (Continued)
Financial Covenants. Our long-term debt arrangements contain customary covenants. In addition, our lines of credit and letters of credit supporting certain long-term debt arrangements contain financial covenants. Our compliance with financial covenants is not dependent on debt ratings. The most restrictive financial covenant requires ALLETE to maintain a ratio of indebtedness to total capitalization (as the amounts are calculated in accordance with the respective long-term debt arrangements) of less than or equal to 0.65 to 1.00, measured quarterly. As of December 31, 2021, our ratio was approximately 0.41 to 1.00. Failure to meet this covenant would give rise to an event of default if not cured after notice from the lender, in which event ALLETE may need to pursue alternative sources of funding. Some of ALLETE’s debt arrangements contain “cross-default” provisions that would result in an event of default if there is a failure under other financing arrangements to meet payment terms or to observe other covenants that would result in an acceleration of payments due. ALLETE has no significant restrictions on its ability to pay dividends from retained earnings or net income. As of December 31, 2021, ALLETE was in compliance with its financial covenants.