XML 23 R9.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Operations and Significant Accounting Policies | 3 Months Ended
--- | ---
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Operations and Significant Accounting Policies | OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Subsequent Events. The Company performed an evaluation of subsequent events for potential recognition and disclosure through the date of the financial statements issuance. On May 5, 2024, ALLETE entered into the Merger Agreement. (See Note 11. Subsequent Event – Agreement and Plan of Merger.) Cash, Cash Equivalents and Restricted Cash. We consider all investments purchased with original maturities of three months or less to be cash equivalents. As of March 31, 2024, restricted cash amounts included in Prepayments and Other on the Consolidated Balance Sheet include collateral deposits required under an ALLETE Clean Energy loan. The restricted cash amounts included in Other Non-Current Assets represent collateral deposits required under an ALLETE Clean Energy loan agreement as well as PSAs. 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 | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023 |  | December 31, 2022
Millions |  |  |  |  |  |  |
Cash and Cash Equivalents | $32.0 |  |  | $71.9 |  |  | $29.9 |  |  | $36.4 |
Restricted Cash included in Prepayments and Other | 5.9 |  |  | 5.1 |  |  | 7.4 |  |  | 1.5 |
Restricted Cash included in Other Non-Current Assets | 2.4 |  |  | 2.4 |  |  | 2.3 |  |  | 2.3 |
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows | $40.3 |  |  | $79.4 |  |  | $39.6 |  |  | $40.2 |
Inventories – Net. Inventories are stated at the lower of cost or net realizable value. Inventories in our Regulated Operations segment are carried at an average cost or first-in, first-out basis. Inventories in our ALLETE Clean Energy segment and Corporate and Other businesses are carried at an average cost, first-in, first-out or specific identification basis.
Inventories – Net | March 31, 2024 |  | December 31, 2023
Millions |  |  |
Fuel (a) | $30.2 |  |  | $27.2 |
Materials and Supplies | 119.0 |  |  | 115.7 |
Renewable Energy Facilities Under Development (b) | 33.5 |  |  | 32.5 |
Total Inventories – Net | $182.7 |  |  | $175.4 |
(a) Fuel consists primarily of coal inventory at Minnesota Power. (b) Renewable Energy Facilities Under Development as of March 31, 2024, consists primarily of project costs related to renewable energy development projects at New Energy. Goodwill. The aggregate carrying amount of goodwill was $154.9 million as of March 31, 2024 ($154.9 million as of December 31, 2023). There have been no changes to goodwill by reportable segment for the quarter and three months ended March 31, 2024. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other Non-Current Assets | March 31, 2024 |  | December 31, 2023
Millions |  |  |
Other Postretirement Benefit Plans | $104.6 |  |  | $106.3 |
Contract Assets (a) | 17.9 |  |  | 18.5 |
Operating Lease Right-of-use Assets | 11.3 |  |  | 10.7 |
ALLETE Properties | 10.7 |  |  | 10.8 |
Restricted Cash | 2.4 |  |  | 2.4 |
Finance Lease Right-of-use Assets | 2.0 |  |  | 2.1 |
Other | 115.9 |  |  | 112.1 |
Total Other Non-Current Assets | $264.8 |  |  | $262.9 |
(a) Contract Assets consist of payments made to customers as an incentive to execute or extend service agreements. The payments are being amortized over the term of the respective agreements as a reduction to revenue.
Other Current Liabilities | March 31, 2024 |  | December 31, 2023
Millions |  |  |
PSAs | $6.0 |  |  | $6.0 |
Customer Deposits | 5.7 |  |  | 7.4 |
Provision for Interim Rate Refund | 5.5 |  |  | — |
Operating Lease Liabilities | 3.1 |  |  | 3.0 |
Finance Lease Liabilities | 0.4 |  |  | 0.4 |
Other | 59.5 |  |  | 75.1 |
Total Other Current Liabilities | $80.2 |  |  | $91.9 |
Other Non-Current Liabilities | March 31, 2024 |  | December 31, 2023
Millions |  |  |
Asset Retirement Obligation (a) | $206.1 |  |  | $202.9 |
PSAs | 19.5 |  |  | 20.9 |
Operating Lease Liabilities | 8.3 |  |  | 7.7 |
Finance Lease Liabilities | 1.5 |  |  | 1.6 |
Other | 32.6 |  |  | 31.2 |
Total Other Non-Current Liabilities | $268.0 |  |  | $264.3 |
(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 March 31, 2024 ($37.2 million as of December 31, 2023). NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
|  |  | Three Months Ended
|  |  | March 31,
Other Income |  |  |  | 2024 | 2023
Millions |  |  |  |  |
Pension and Other Postretirement Benefit Plan Non-Service Credits (a) |  |  |  | $4.3 |  | $2.0 |
Interest and Investment Income |  |  |  | 1.9 |  | 1.1 |
AFUDC - Equity |  |  |  | 1.2 |  | 0.5 |
Other |  |  |  | 1.2 |  | 0.5 |
Total Other Income |  |  |  | $8.6 |  | $4.1 |
(a)These are components of net periodic pension and other postretirement benefit cost other than service cost. (See Note 9. Pension and Other Postretirement Benefit Plans.)
| Three Months Ended
| March 31,
Supplemental Statement of Cash Flows Information | 2024 |  | 2023
Millions |  |  |
Cash Paid for Interest – Net of Amounts Capitalized | $25.7 |  | $24.6
Noncash Investing and Financing Activities |  |  |
Decrease in Accounts Payable for Capital Additions to Property, Plant and Equipment | $(5.9) |  | $(7.1)
Capitalized Asset Retirement Costs | $2.2 |  | $2.4
AFUDC–Equity | $1.2 |  | $0.5
New Accounting Pronouncements and Disclosure Rules. SEC Climate-related Disclosures Rule. On March 6, 2024, the SEC issued the final rules regarding the enhancement and standardization of climate-related disclosures for investors (Rule). The Rule requires registrants to provide certain climate-related information in their annual reports and registration statements. These requirements include disclosing climate-related risks that materially affect or are reasonably likely to materially affect a registrant’s business strategy, results of operations, or financial condition as well as certain disclosures related to greenhouse-gas emissions, and the effects of severe weather events and other natural conditions. The disclosure requirements will begin phasing in for annual periods beginning in 2025. The Company is evaluating the final rule to determine its impact on the Company’s disclosures. The Rule is currently being challenged before the U.S. Court of Appeals, and the SEC issued a voluntary stay of the Rule on April 4, 2024, pending judicial review. There are no other new accounting pronouncements or rules that we anticipate having a material effect on the presentation of ALLETE’s consolidated financial statements.

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

X
- Definition The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//235/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//275/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//810/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 250 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//250/tableOfContent + Details
Name: | us-gaap_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration