XML 65 R37.htm IDEA: XBRL DOCUMENT
v3.22.4

Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
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, 2022:
| 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter
Millions |  |  |  |  |  |
Capital Purchase Obligations | $26.6 |  | $10.6 |  | $1.3 |  | $2.7 |  | — |  | $0.6 |
Easements (a) | $7.8 |  | $7.9 |  | $8.0 |  | $8.1 |  | $8.2 |  | $206.9 |
PPAs (b) | $151.3 |  | $145.8 |  | $137.0 |  | $136.9 |  | $123.6 |  | $1,010.3 |
Other Purchase Obligations (c) | $49.9 |  | $10.2 |  | $6.5 |  | — |  | — |  | — |
(a)Easement obligations represent the minimum payments for our land easement agreements at our wind energy facilities. (b)Does not include the Oliver Wind I, Oliver Wind II or Nobles 2 PPAs, as Minnesota Power only pays for energy as it is delivered. (See Power Purchase Agreements.) (c)Consists of long-term service agreements for wind energy facilities and minimum purchase commitments under coal and rail contracts. Minnesota Power has also entered into the following long-term PPAs for the purchase of capacity and energy as of December 31, 2022:
Counterparty | Quantity | Product | Commencement | Expiration | Pricing
PPAs |  |  |  |  |
Calpine Corporation | 25 MW | Capacity | June 2019 | May 2026 | Fixed
Manitoba Hydro |  |  |  |  |
PPA 1 | 250 MW | Capacity / Energy | June 2020 | May 2035 | (a)
PPA 2 | 133 MW | Energy | June 2020 | June 2040 | Forward Market Prices
Nobles 2 | 250 MW | Capacity / Energy | December 2020 | December 2040 | Fixed
Oliver Wind I | (b) | Energy | December 2006 | December 2040 | Fixed
Oliver Wind II | (b) | Energy | December 2007 | December 2040 | Fixed
(a)The capacity price was 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. (b)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. Minnesota Power has also entered into the following long-term PSAs for the sale of capacity and energy as of December 31, 2022:
Counterparty | Quantity | Product | Commencement | Expiration | Pricing
PSAs |  |  |  |  |
Basin |  |  |  |  |
PSA 1 | (a) | Capacity | June 2022 | May 2025 | Fixed
PSA 2 | 100 MW | Capacity | June 2025 | May 2028 | Fixed
Great River Energy | 100 MW | Capacity | June 2022 | May 2025 | Fixed
Minnkota Power | (b) | Capacity / Energy | June 2014 | December 2026 | (b)
Oconto Electric Cooperative | 25 MW | Capacity / Energy | January 2019 | May 2026 | Fixed
Silver Bay Power | (c) | Energy | January 2017 | December 2031 | (d)
(a)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. (b)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 32 percent in 2022 (28 percent in 2021 and in 2020). (See Square Butte PPA.) (c)Silver Bay Power supplies approximately 90 MW of load to Northshore Mining, an affiliate of Silver Bay Power. (d)The energy pricing escalates at a fixed rate annually and is adjusted for changes in a natural gas index.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unconditional purchase obligation not recognized as liability. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=123406679&loc=d3e25336-109308 + Details
Name: | us-gaap_UnrecordedUnconditionalPurchaseObligationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration