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Operations and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash and Cash Equivalents

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			2024						2023						2022
Millions
Cash and Cash Equivalents			$32.8						$71.9						$36.4
Restricted Cash included in Prepayments and Other			19.9						5.1						1.5
Restricted Cash included in Other Non-Current Assets			2.5						2.4						2.3
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows			$55.2						$79.4						$40.2

Restrictions on Cash and Cash Equivalents

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			2024						2023						2022
Millions
Cash and Cash Equivalents			$32.8						$71.9						$36.4
Restricted Cash included in Prepayments and Other			19.9						5.1						1.5
Restricted Cash included in Other Non-Current Assets			2.5						2.4						2.3
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows			$55.2						$79.4						$40.2

Supplemental Statement of Cash Flows Information

Supplemental Statement of Cash Flow Information.

Consolidated Statement of Cash Flows
Year Ended December 31			2024			2023			2022
Millions
Cash Paid During the Period for Interest – Net of Amounts Capitalized			$75.1			$80.5			$72.8
Cash Paid for Income Taxes			$19.1			$19.5			$6.0
Noncash Investing and Financing Activities
Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment			$15.5			$2.2			$(9.6)
Reclassification of Property, Plant and Equipment to Inventory (a)			—			—			$99.7
Capitalized Asset Retirement Costs (b)			$55.0			$5.8			$11.8
AFUDC–Equity			$5.0			$3.6			$2.7

(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)Capitalized asset retirement costs in 2024 reflect the impact of estimated compliance costs related to the EPA’s CCR Legacy Impoundment Rule finalized in May 2024. (See Note 9. Commitments, Guarantees and Contingencies.)

NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

Accounts Receivable

Accounts Receivable
As of December 31			2024						2023
Millions
Trade Accounts Receivable
Billed			$115.9						$106.8
Unbilled			27.2						23.8
Less: Allowance for Doubtful Accounts			1.7						1.6
Total Trade Accounts Receivable			141.4						129.0
Income Taxes Receivable			6.7						8.2
Total Accounts Receivable			$148.1						$137.2

Inventories – Net

Inventories – Net
As of December 31			2024						2023
Millions
Fuel (a)			$22.5						$27.2
Materials and Supplies			107.6						115.7
Renewable Energy Facilities Under Development (b)			24.5						32.5
Total Inventories – Net			$154.6						$175.4

(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.

Other Non-Current Assets

Other Non-Current Assets
As of December 31			2024						2023
Millions
Contract Assets (a)			$15.9						$18.5
ALLETE Properties			10.3						10.8
Restricted Cash			2.5						2.4
Other Postretirement Benefit Plans			107.6						106.3
Other			134.2						124.9
Total Other Non-Current Assets			$270.5						$262.9

(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			2024						2023
Millions
Customer Deposits			$7.8						$7.4
PSAs			5.9						6.0
Provision for Interim Rate Refund			23.0						—
Manufactured Gas Plant (a)			0.1						0.8
Other			81.1						77.7
Total Other Current Liabilities			$117.9						$91.9

(a) 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			2024						2023
Millions
Asset Retirement Obligation (a)(b)			$261.3						$202.9
PSAs			15.1						20.9
Other			36.4						40.5
Total Other Non-Current Liabilities			$312.8						$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 $42.3 million in Other Non-Current Assets on the Consolidated Balance Sheet as of December 31, 2024 ($37.2 million as of December 31, 2023).

(b) The increase in Asset Retirement Obligation in 2024 reflects the impact of estimated compliance costs related to the EPA’s CCR Legacy Impoundment Rule finalized in May 2024. (See Note 9. Commitments, Guarantees and Contingencies.)

Components of Lease Cost

Additional information on the components of lease cost and presentation of cash flows were as follows:

As December 31			2024			2023
Millions
Operating Lease Cost			$5.4			$5.0
Finance Lease Cost			$0.3			$0.1
Other Information:
Operating Cash Flows From Operating Leases			$5.4			$5.0
Financing Cash Flows From Finance Leases			$0.4			$0.2

Additional information related to leases were as follows:

As of December 31			2024			2023
Millions
Balance Sheet Information Related to Leases:
Operating Lease Other Non-Current Assets			$9.1			$10.7
Finance Lease Other Non-Current Assets			1.9			2.1
Total Lease Right-of-use Assets			$11.0			$12.8
Operating Lease Other Current Liabilities			$3.2			$3.0
Finance Lease Other Current Liabilities			0.4			0.4
Operating Lease Other Non-Current Liabilities			6.0			7.7
Finance Lease Other Non-Current Liabilities			1.3			1.6
Total Lease Liabilities			$10.9			$12.7
Income Statement Information Related to Leases:
Operating Lease Rent Expense			$5.4			$5.0
Finance Lease Interest Expense			0.1			—
Finance Lease Amortization Expense			0.2			0.1
Total Operating and Finance Lease Expenses			$5.7			$5.1
Weighted Average Remaining Lease Term (Years):
Operating Leases - Vehicles and Equipment			2			3
Operating Leases - Land and Other			23			12
Finance Leases - Vehicles and Equipment			4			5
Weighted Average Discount Rate:
Operating Leases - Vehicles and Equipment			4.0		%	4.0		%
Operating Leases - Land and Other			5.9		%	5.0		%
Finance Leases - Vehicles and Equipment			5.4		%	5.4		%

Maturities of Lease Liabilities

Maturities of operating and finance lease liabilities as of December 31, 2024, were as follows:

Millions												Operating			Finance
2025												$3.4			$0.4
2026												3.3			0.4
2027												4.2			0.5
2028												0.3			0.6
2029												0.1			—
Thereafter												3.4			—
Total Lease Payments Due												14.7			1.9
Less: Imputed Interest												5.5			0.2
Total Lease Obligations												9.2			1.7
Less: Current Lease Obligations												3.2			0.4
Total Long-term Lease Obligations												$6.0			$1.3

Other Income (Expense) - Other

Other Income (Expense) - Other
Year Ended December 31			2024			2023			2022
Millions
Pension and Other Postretirement Benefit Plan Non-Service Credit (a)			$13.6			$8.9			$9.8
Interest and Investment Income (b)			4.0			10.3			—
AFUDC - Equity			5.0			3.6			2.7
Gain on Land Sales			0.1			0.2			—
PSA Liability (c)			—			—			10.2
Gain on Arbitration Award (d)			—			58.4			—
Other Income (Expense)			0.3			3.6			(0.3)
Total Other Income (Expense) - Other			$23.0			$85.0			$22.4

(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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