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Short-Term and Long-Term Debt
 12 Months Ended
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 3120232022
Millions  
First Mortgage Bonds
6.02% Series Due 2023
—$75.0
3.69% Series Due 2024
$60.060.0
4.90% Series Due 2025
30.030.0
5.10% Series Due 2025
30.030.0
3.20% Series Due 2026
75.075.0
5.99% Series Due 2027
60.060.0
3.30% Series Due 2028
40.040.0
4.08% Series Due 2029
70.070.0
3.74% Series Due 2029
50.050.0
2.50% Series Due 2030
46.046.0
3.86% Series Due 2030
60.060.0
2.79% Series Due 2031
100.0100.0
4.54% Series Due 2032
75.075.0
4.98% Series Due 2033
125.0—
5.69% Series Due 2036
50.050.0
6.00% Series Due 2040
35.035.0
5.82% Series Due 2040
45.045.0
4.08% Series Due 2042
85.085.0
4.21% Series Due 2043
60.060.0
4.95% Series Due 2044
40.040.0
5.05% Series Due 2044
40.040.0
4.39% Series Due 2044
50.050.0
4.07% Series Due 2048
60.060.0
4.47% Series Due 2049
30.030.0
3.30% Series Due 2050
94.094.0
Armenia Mountain Senior Secured Notes 3.26% Due 2024
9.519.3
Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 202527.827.8
Revolving Credit Facility Variable Rate Due 2027—13.0
Senior Unsecured Notes 2.65% Due 2025
150.0150.0
Senior Unsecured Notes 3.11% Due 2027
80.080.0
SWL&P First Mortgage Bonds 4.15% Series Due 2028
15.015.0
SWL&P First Mortgage Bonds 4.14% Series Due 2048
12.012.0
Unsecured Term Loan Variable Rate Due 2023—170.0
Other Long-Term Debt, 2023 Weighted Average Rate 5.24% Due 2024 – 2051
95.182.0
Unamortized Debt Issuance Costs(8.1)(8.3)
Total Long-Term Debt1,791.31,920.8
Less: Due Within One Year111.4272.6
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.