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Equity Investments | 12 Months Ended
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Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract] |
Equity Investments [Text Block] | EQUITY INVESTMENTS Investment in ATC. Our wholly-owned subsidiary, ALLETE Transmission Holdings, owns approximately 8 percent of ATC, a Wisconsin-based utility that owns and maintains electric transmission assets in portions of Wisconsin, Michigan, Minnesota and Illinois. We account for our investment in ATC under the equity method of accounting. On January 31, 2023, we invested an additional $0.8 million in ATC. In total, we expect to invest approximately $8.2 million in 2023.
ALLETE’s Investment in ATC |  |
Year Ended December 31 | 2022 | 2021
Millions |  |
Equity Investment Beginning Balance | $154.5 |  | $149.0 |
Cash Investments | 5.9 |  | — |
Equity in ATC Earnings | 19.3 |  | 21.3 |
Distributed ATC Earnings | (15.5) |  | (17.2) |
Amortization of the Remeasurement of Deferred Income Taxes | 1.2 |  | 1.4 |
Equity Investment Ending Balance | $165.4 |  | $154.5 |
ATC Summarized Financial Data |  |
Balance Sheet Data |  |
As of December 31 | 2022 | 2021
Millions |  |
Current Assets | $89.6 |  | $89.8 |
Non-Current Assets | 5,997.8 |  | 5,628.1 |
Total Assets | $6,087.4 |  | $5,717.9 |
Current Liabilities | $511.9 |  | $436.9 |
Long-Term Debt | 2,613.0 |  | 2,513.0 |
Other Non-Current Liabilities | 485.8 |  | 422.0 |
Members’ Equity | 2,476.7 |  | 2,346.0 |
Total Liabilities and Members’ Equity | $6,087.4 |  | $5,717.9 |
Income Statement Data |  |  |
Year Ended December 31 | 2022 | 2021 | 2020
Millions |  |  |
Revenue | $751.2 |  | $754.8 |  | $758.1 |
Operating Expense | 381.5 |  | 376.2 |  | 372.4 |
Other Expense | 122.9 |  | 113.9 |  | 110.9 |
Net Income | $246.8 |  | $264.7 |  | $274.8 |
ALLETE’s Equity in Net Income | $19.3 |  | $21.3 |  | $22.3 |
ATC’s authorized return on equity is 10.02 percent, or 10.52 percent including an incentive adder for participation in a regional transmission organization, based on a 2020 FERC order which is subject to various outstanding legal challenges related to the return on equity calculation and refund period ordered by the FERC. On August 9, 2022, the U.S. Court of Appeals for the District of Columbia Circuit vacated and remanded the 2020 FERC order back to FERC. As a result of this decision, ATC recorded a reserve in the third quarter of 2022 for anticipated refunds to its customers for approximately $31 million of which our share was approximately $2.4 million pre-tax. We cannot predict the return on equity FERC will ultimately authorize in the remanded proceeding. In addition, the FERC issued a Notice of Proposed Rulemaking in April 2021 proposing to limit the 50 basis point incentive adder for participation in a regional transmission organization to only the first three years of membership in such an organization. If this proposal is adopted, our equity in earnings from ATC would be reduced by approximately $1 million pre-tax annually. NOTE 6. EQUITY INVESTMENTS (Continued) Investment in Nobles 2. Our subsidiary, ALLETE South Wind, owns a 49 percent equity interest in Nobles 2, the entity that owns and operates a 250 MW wind energy facility in southwestern Minnesota pursuant to a 20-year PPA with Minnesota Power. We account for our investment in Nobles 2 under the equity method of accounting.
ALLETE’s Investment in Nobles 2 |  |
Millions |  |
Equity Investment Balance as of December 31, 2021 | $163.5 |  |
Equity in Nobles 2 Earnings (a) | (0.6) |  |
Distributed Nobles 2 Earnings | (5.6) |  |
Equity Investment Balance as of December 31, 2022 | $157.3 |  |
(a)The Company also recorded net loss attributable to non-controlling interest of $10.6 million related to its investment in Nobles 2.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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