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Operations and Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheet that aggregate to the amounts presented in the Consolidated Statement of Cash Flows.
Cash, Cash Equivalents and Restricted Cash |  |  |  |  |
As of December 31 | 2023 |  | 2022 |  | 2021
Millions |  |  |  |  |
Cash and Cash Equivalents | $71.9 |  |  | $36.4 |  |  | $45.1 |
Restricted Cash included in Prepayments and Other | 5.1 |  |  | 1.5 |  |  | 0.3 |
Restricted Cash included in Other Non-Current Assets | 2.4 |  |  | 2.3 |  |  | 2.3 |
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows | $79.4 |  |  | $40.2 |  |  | $47.7 |
Supplemental Statement of Cash Flows Information | Supplemental Statement of Cash Flow Information.
Consolidated Statement of Cash Flows |  |  |  |
Year Ended December 31 | 2023 | 2022 | 2021 |
Millions |  |  |  |
Cash Paid During the Period for Interest – Net of Amounts Capitalized | $80.5 |  | $72.8 |  | $66.8 |  |
Cash Paid for Income Taxes | $19.5 |  | $6.0 |  | — |  |
Noncash Investing and Financing Activities |  |  |  |
Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment | $2.2 | $(9.6) | $(14.0) |
Reclassification of Property, Plant and Equipment to Inventory (a) | — |  | $99.7 |  | — |  |
Reclassification of Redeemable Non-Controlling Interest to Current Liabilities (b) | — |  | — |  | $30.6 |  |
Capitalized Asset Retirement Costs | $5.8 |  | $11.8 |  | $16.9 |  |
AFUDC–Equity | $3.6 |  | $2.7 |  | $2.6 |  |
(a)The decommissioning of the existing Northern Wind assets resulted in a reclassification from Property, Plant and Equipment – Net to Inventories – Net in the second quarter of 2022 as they were repowered and subsequently sold to a subsidiary of Xcel Energy Inc. In the third quarter of 2022, safe harbor equipment was transferred to the project entity resulting in an additional reclassification from Property, Plant and Equipment – Net to Inventories – Net. (b)Amount reclassified to Current Liabilities resulting from the exercise of an option to buy out a non-controlling interest. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accounts Receivable |
Accounts Receivable |  |  |
As of December 31 | 2023 |  | 2022
Millions |  |  |
Trade Accounts Receivable |  |  |
Billed | $106.8 |  |  | $107.1 |
Unbilled | 23.8 |  |  | 29.2 |
Less: Allowance for Doubtful Accounts | 1.6 |  |  | 1.6 |
Total Trade Accounts Receivable | 129.0 |  |  | 134.7 |
Income Taxes Receivable | 8.2 |  |  | 3.2 |
Total Accounts Receivable | $137.2 |  |  | $137.9 |
Inventories – Net |
Inventories – Net |  |  |
As of December 31 | 2023 |  | 2022
Millions |  |  |
Fuel (a) | $27.2 |  |  | $33.4 |
Materials and Supplies | 115.7 |  |  | 75.1 |
Renewable Energy Facilities Under Development (b) | 32.5 |  |  | 347.4 |
Total Inventories – Net | $175.4 |  |  | $455.9 |
(a) Fuel consists primarily of coal inventory at Minnesota Power. (b) Renewable Energy Facilities Under Development consists primarily of project costs related to renewable energy development projects at New Energy. As of December 31, 2022, it consisted primarily of project costs related to ALLETE Clean Energy’s Northern Wind and Red Barn wind projects sold in the first quarter of 2023 and the second quarter of 2023, respectively. (See Other Current Liabilities.) NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other Non-Current Assets |
Other Non-Current Assets |  |  |
As of December 31 | 2023 |  | 2022
Millions |  |  |
Contract Assets (a) | $18.5 |  |  | $21.0 |
ALLETE Properties | 10.8 |  |  | 19.1 |
Restricted Cash | 2.4 |  |  | 2.3 |
Other Postretirement Benefit Plans | 106.3 |  |  | 58.8 |
Other | 124.9 |  |  | 103.1 |
Total Other Non-Current Assets | $262.9 |  |  | $204.3 |
(a) Contract Assets include payments made to customers as an incentive to execute or extend service agreements. The contract payments are being amortized over the term of the respective agreements as a reduction to revenue.
Other Current Liabilities |
Other Current Liabilities |  |  |
As of December 31 | 2023 |  | 2022
Millions |  |  |
Customer Deposits (a) | $7.4 |  |  | $150.7 |
PSAs | 6.0 |  |  | 6.1 |
Provision for Interim Rate Refund | — |  |  | 18.4 |
Manufactured Gas Plant (b) | 0.8 |  |  | 14.7 |
Other | 77.7 |  |  | 61.1 |
Total Other Current Liabilities | $91.9 |  |  | $251.0 |
(a) Primarily related to deposits received by ALLETE Clean Energy for the Northern Wind project sold in the first quarter of 2023 and the Red Barn wind project sold in the second quarter of 2023. (See Inventories – Net.) (b) The manufactured gas plant represents the current liability for remediation of a former manufactured gas plant site located in Superior, Wisconsin, and formerly operated by SWL&P. (See Note 9. Commitments, Guarantees and Contingencies.)
Other Non-Current Liabilities |
Other Non-Current Liabilities |  |  |
As of December 31 | 2023 |  | 2022
Millions |  |  |
Asset Retirement Obligation (a) | $202.9 |  |  | $200.4 |
PSAs | 20.9 |  |  | 26.9 |
Other | 40.5 |  |  | 41.7 |
Total Other Non-Current Liabilities | $264.3 |  |  | $269.0 |
(a) The asset retirement obligation is primarily related to our Regulated Operations and is funded through customer rates over the life of the related assets. Additionally, BNI Energy funds its obligation through its cost-plus coal supply agreements for which BNI Energy has recorded a receivable of $37.2 million in Other Non-Current Assets on the Consolidated Balance Sheet as of December 31, 2023 ($32.4 million as of December 31, 2022).
Components of Lease Cost | Additional information on the components of lease cost and presentation of cash flows were as follows:
As December 31 | 2023 | 2022
Millions |  |
Operating Lease Cost | $5.0 |  | $6.3 |
Finance Lease Cost | $0.1 |  | — |
Other Information: |  |
Operating Cash Flows From Operating Leases | $5.0 |  | $6.3 |
Financing Cash Flows From Finance Leases | $0.2 |  | — |
Additional information related to leases were as follows:
As of December 31 | 2023 | 2022
Millions |  |
Balance Sheet Information Related to Leases: |  |
Operating Lease Other Non-Current Assets | $10.7 | $12.7
Finance Lease Other Non-Current Assets | 2.1 | —
Total Lease Right-of-use Assets | $12.8 | $12.7
Operating Lease Other Current Liabilities | $3.0 | $3.2
Finance Lease Other Current Liabilities | 0.4 | —
Operating Lease Other Non-Current Liabilities | 7.7 | 9.3
Finance Lease Other Non-Current Liabilities | 1.6 | —
Total Lease Liabilities | $12.7 | $12.5
Income Statement Information Related to Leases: |  |
Operating Lease Rent Expense | $5.0 | $6.3
Finance Lease Amortization Expense | 0.1 | —
Total Operating and Finance Lease Expenses | $5.1 | $6.3
Weighted Average Remaining Lease Term (Years): |  |
Operating Leases - Vehicles and Equipment | 3 | 4
Operating Leases - Land and Other | 12 | 16
Finance Leases - Vehicles and Equipment | 5 | 0
Weighted Average Discount Rate: |  |
Operating Leases - Vehicles and Equipment | 4.0 | % | 3.9 | %
Operating Leases - Land and Other | 5.0 | % | 3.9 | %
Finance Leases - Vehicles and Equipment | 5.4 | % | — | %
NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Leases (Continued)
Maturities of Lease Liabilities | Maturities of operating and finance lease liabilities as of December 31, 2023, were as follows:
Millions |  |  |  | Operating | Finance
2024 |  |  |  | $3.2 |  | $0.4 |
2025 |  |  |  | 3.2 |  | 0.4 |
2026 |  |  |  | 3.2 |  | 0.4 |
2027 |  |  |  | 4.1 |  | 0.5 |
2028 |  |  |  | 0.2 |  | 0.6 |
Thereafter |  |  |  | 1.2 |  | — |
Total Lease Payments Due |  |  |  | 15.1 |  | 2.3 |
Less: Imputed Interest |  |  |  | 4.4 |  | 0.3 |
Total Lease Obligations |  |  |  | 10.7 |  | 2.0 |
Less: Current Lease Obligations |  |  |  | 3.0 |  | 0.4 |
Total Long-term Lease Obligations |  |  |  | $7.7 |  | $1.6 |
Other Income (Expense) - Other |
Other Income (Expense) - Other |  |  |
Year Ended December 31 | 2023 | 2022 | 2021
Millions |  |  |
Pension and Other Postretirement Benefit Plan Non-Service Credit (a) | $8.9 |  | $9.8 |  | $6.1 |
Interest and Investment Income (b) | 10.3 |  | — |  | 2.3 |
AFUDC - Equity | 3.6 |  | 2.7 |  | 2.6 |
Gain on Land Sales | 0.2 |  | — |  | 0.1 |
PSA Liability (c) | — |  | 10.2 |  | — |
Gain on Arbitration Award (d) | 58.4 |  | — |  | — |
Other | 3.6 |  | (0.3) |  | (2.4) |
Total Other Income (Expense) - Other | $85.0 |  | $22.4 |  | $8.7 |
(a)These are components of net periodic pension and other postretirement benefit cost other than service cost. (See Note 12. Pension and Other Postretirement Benefit Plans.) (b)Interest and Investment Income for the year ended December 31, 2023, reflects $5.1 million of interest income related to interest awarded as part of an arbitration ruling involving a subsidiary of ALLETE Clean Energy. (See Note 9. Commitments, Guarantees and Contingencies.) (c)The gain on removal of the PSA liability for the Northern Wind project upon decommissioning of the legacy wind energy facility assets, which was more than offset by a reserve for an anticipated loss on the sale of the Northern Wind project that was recorded in Cost of Sales - Non-Utility on the Consolidated Statement of Income. (d)This reflects a gain recognized for the favorable outcome of an arbitration ruling involving a subsidiary of ALLETE Clean Energy. (See Note 9. Commitments, Guarantees and Contingencies.)

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