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Short-Term and Long-Term Debt | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short-Term Debt. As of December 31, 2023, total short-term debt outstanding was $111.4 million ($272.6 million as of December 31, 2022), and consisted of long-term debt due within one year and included $0.1 million of unamortized debt issuance costs. On October 17, 2023, ALLETE amended its $400 million credit facility (Credit Agreement), which was scheduled to expire in January 2026, to $355 million and extended the expiration date to January 10, 2027. The amended Credit Agreement is unsecured and has a variable interest rate. ALLETE may request a single, one-year extension to the expiration date. Advances may be used by ALLETE for general corporate purposes, to provide liquidity in support of ALLETE's commercial paper program and to issue up to $100 million in letters of credit. As of December 31, 2023, we had consolidated bank lines of credit aggregating to $423.1 million ($475.7 million as of December 31, 2022), most of which expire in January 2027. We had $19.4 million outstanding in standby letters of credit and $34.1 million outstanding draws under our lines of credit as of December 31, 2023 ($32.8 million in standby letters of credit and $31.3 million outstanding draws as of December 31, 2022). Long-Term Debt. As of December 31, 2023, total long-term debt outstanding was $1,679.9 million ($1,648.2 million as of December 31, 2022) and included $8.0 million of unamortized debt issuance costs. The aggregate amount of long-term debt maturing in 2024 is $111.4 million; $244.7 million in 2025; $80.2 million in 2026; $162.5 million in 2027; $55.8 million in 2028; and $1,144.8 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 April 27, 2023, ALLETE issued $125 million of its First Mortgage Bonds (Bonds) to certain institutional buyers in the private placement market. The Bonds, which bear interest at 4.98 percent, will mature in April 2033 and pay interest semi-annually in May and November of each year, commencing on November 1, 2023. 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 refinance existing indebtedness 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. NOTE 8. SHORT-TERM AND LONG-TERM DEBT (Continued) Long-Term Debt (Continued)
Long-Term Debt |  |
As of December 31 | 2023 | 2022
Millions |  |
First Mortgage Bonds |  |
6.02% Series Due 2023 | — | $75.0
3.69% Series Due 2024 | $60.0 | 60.0
4.90% Series Due 2025 | 30.0 | 30.0
5.10% Series Due 2025 | 30.0 | 30.0
3.20% Series Due 2026 | 75.0 | 75.0
5.99% Series Due 2027 | 60.0 | 60.0
3.30% Series Due 2028 | 40.0 | 40.0
4.08% Series Due 2029 | 70.0 | 70.0
3.74% Series Due 2029 | 50.0 | 50.0
2.50% Series Due 2030 | 46.0 | 46.0
3.86% Series Due 2030 | 60.0 | 60.0
2.79% Series Due 2031 | 100.0 | 100.0
4.54% Series Due 2032 | 75.0 | 75.0
4.98% Series Due 2033 | 125.0 | —
5.69% Series Due 2036 | 50.0 | 50.0
6.00% Series Due 2040 | 35.0 | 35.0
5.82% Series Due 2040 | 45.0 | 45.0
4.08% Series Due 2042 | 85.0 | 85.0
4.21% Series Due 2043 | 60.0 | 60.0
4.95% Series Due 2044 | 40.0 | 40.0
5.05% Series Due 2044 | 40.0 | 40.0
4.39% Series Due 2044 | 50.0 | 50.0
4.07% Series Due 2048 | 60.0 | 60.0
4.47% Series Due 2049 | 30.0 | 30.0
3.30% Series Due 2050 | 94.0 | 94.0
Armenia Mountain Senior Secured Notes 3.26% Due 2024 | 9.5 | 19.3
Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 2025 | 27.8 | 27.8
Revolving Credit Facility Variable Rate Due 2027 | — | 13.0
Senior Unsecured Notes 2.65% Due 2025 | 150.0 | 150.0
Senior Unsecured Notes 3.11% Due 2027 | 80.0 | 80.0
SWL&P First Mortgage Bonds 4.15% Series Due 2028 | 15.0 | 15.0
SWL&P First Mortgage Bonds 4.14% Series Due 2048 | 12.0 | 12.0
Unsecured Term Loan Variable Rate Due 2023 | — | 170.0
Other Long-Term Debt, 2023 Weighted Average Rate 5.24% Due 2024 – 2051 | 95.1 | 82.0
Unamortized Debt Issuance Costs | (8.1) | (8.3)
Total Long-Term Debt | 1,791.3 | 1,920.8
Less: Due Within One Year | 111.4 | 272.6
Net Long-Term Debt | $1,679.9 | $1,648.2
NOTE 8. 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, 2023, our ratio was approximately 0.36 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, 2023, ALLETE was in compliance with its financial covenants.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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