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Business Segments | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Business Segments | BUSINESS SEGMENTS We present two reportable segments: Regulated Operations and ALLETE Clean Energy. 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. We also present Corporate and Other which includes three operating segments, New Energy, a renewable energy development company, 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, South Shore Energy, our non-rate regulated, Wisconsin subsidiary developing NTEC, other business development and corporate expenditures, unallocated interest expense, a small amount of non-rate base generation, land holdings in Minnesota, and earnings on cash and investments. NOTE 14. BUSINESS SEGMENTS (Continued)
Year Ended December 31 | 2023 | 2022 | 2021
Millions |  |  |
Operating Revenue |  |  |
Residential | $165.7 |  | $175.9 |  | $160.8 |
Commercial | 184.6 |  | 187.2 |  | 168.6 |
Municipal | 33.4 |  | 40.2 |  | 52.0 |
Industrial | 593.6 |  | 589.0 |  | 565.5 |
Other Power Suppliers | 146.1 |  | 165.8 |  | 168.7 |
Other | 114.9 |  | 101.2 |  | 112.3 |
Total Regulated Operations | 1,238.3 |  | 1,259.3 |  | 1,227.9 |
ALLETE Clean Energy |  |  |
Long-term PSA | 65.0 |  | 77.2 |  | 75.5 |
Sale of Wind Energy Facilities | 348.4 |  | 33.5 |  | — |
Other | 5.1 |  | 7.6 |  | 11.4 |
Total ALLETE Clean Energy | 418.5 |  | 118.3 |  | 86.9 |
Corporate and Other |  |  |
Long-term Contract | 101.2 |  | 89.2 |  | 84.4 |
Sale of Renewable Development Projects | 92.5 |  | 73.9 |  | — |
Other | 29.3 |  | 30.0 |  | 20.0 |
Total Corporate and Other | 223.0 |  | 193.1 |  | 104.4 |
Total Operating Revenue | $1,879.8 |  | $1,570.7 |  | $1,419.2 |
Net Income Attributable to ALLETE (a) |  |  |
Regulated Operations | $147.2 |  | $149.9 |  | $129.1 |
ALLETE Clean Energy (b) | 71.7 |  | 16.3 |  | 26.3 |
Corporate and Other (c)(d) | 28.2 |  | 23.1 |  | 13.8 |
Total Net Income Attributable to ALLETE | $247.1 |  | $189.3 |  | $169.2 |
(a) Includes interest expense and interest income resulting from intercompany loan agreements and allocated to certain subsidiaries. The amounts are eliminated in consolidation. (b) Net income in 2023 includes a $44.3 million after-tax gain recognized for a favorable arbitration ruling. (See Note 9. Commitments, Guarantees and Contingencies.) (c) Net Income in 2022 includes a $8.3 million after-tax expense as a result of purchase price accounting related to projects under development at the time of acquisition and $2.7 million after-tax of transaction costs related to the acquisition of New Energy. (d) In 2021, South Shore Energy sold a portion of its undivided ownership interest in NTEC to Basin. The closing of the transaction resulted in the recognition of an approximately $8.5 million after-tax gain which is reflected in Corporate and Other. (See Note 1. Operations and Significant Accounting Policies.) NOTE 14. BUSINESS SEGMENTS (Continued)
Year Ended December 31 | 2023 | 2022 | 2021
Millions |  |  |
Depreciation and Amortization |  |  |
Regulated Operations | $179.2 |  | $171.9 |  | $170.7 |
ALLETE Clean Energy | 57.5 |  | 58.6 |  | 49.2 |
Corporate and Other | 15.1 |  | 11.7 |  | 11.8 |
Total Depreciation and Amortization | $251.8 |  | $242.2 |  | $231.7 |
Interest Expense (a) |  |  |
Regulated Operations | $63.9 |  | $58.1 |  | $57.3 |
ALLETE Clean Energy | 0.8 |  | 2.3 |  | 1.5 |
Corporate and Other | 22.5 |  | 19.6 |  | 13.2 |
Eliminations | (6.4) |  | (4.8) |  | (2.9) |
Total Interest Expense | $80.8 |  | $75.2 |  | $69.1 |
Equity Earnings |  |  |
Regulated Operations | $23.1 |  | $19.3 |  | $21.3 |
Corporate and Other | (1.4) |  | (0.6) |  | (1.3) |
Total Equity Earnings | $21.7 |  | $18.7 |  | $20.0 |
Income Tax Expense (Benefit) |  |  |
Regulated Operations | $22.4 |  | $(10.4) | $(16.6)
ALLETE Clean Energy | 2.7 |  | (15.4) | (16.6)
Corporate and Other | 2.8 |  | (5.4) | 6.3 |
Total Income Tax Expense (Benefit) | $27.9 | $(31.2) | $(26.9)
(a) Includes interest expense resulting from intercompany loan agreements and allocated to certain subsidiaries. The amounts are eliminated in consolidation.
As of December 31 | 2023 | 2022 |
Millions |  |  |
Assets |  |  |
Regulated Operations | $4,335.0 |  | $4,291.4 |  |
ALLETE Clean Energy | 1,594.1 |  | 1,873.3 |  |
Corporate and Other | 727.3 |  | 680.9 |  |
Total Assets | $6,656.4 |  | $6,845.6 |  |
Capital Expenditures |  |  |
Regulated Operations | $236.3 |  | $158.3 |  |
ALLETE Clean Energy | (5.3) |  | 2.2 |  |
Corporate and Other | 25.0 |  | 47.6 |  |
Total Capital Expenditures | $256.0 |  | $208.1 |  |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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