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OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended
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Mar. 31, 2025
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. 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, 2025, 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, 2025 |  | December 31, 2024 |  | March 31, 2024 |  | December 31, 2023
Millions |  |  |  |  |  |  |
Cash and Cash Equivalents | $92.0 |  |  | $32.8 |  |  | $32.0 |  |  | $71.9 |
Restricted Cash included in Prepayments and Other | — |  |  | 19.9 |  |  | 5.9 |  |  | 5.1 |
Restricted Cash included in Other Non-Current Assets | 2.4 |  |  | 2.5 |  |  | 2.4 |  |  | 2.4 |
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows | $94.4 |  |  | $55.2 |  |  | $40.3 |  |  | $79.4 |
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, 2025 |  | December 31, 2024
Millions |  |  |
Fuel (a) | $22.3 |  |  | $22.5 |
Materials and Supplies | 122.2 |  |  | 107.6 |
Renewable Energy Facilities Under Development (b) | 26.6 |  |  | 24.5 |
Total Inventories – Net | $171.1 |  |  | $154.6 |
(a) Fuel consists primarily of coal inventory at Minnesota Power. (b) Renewable Energy Facilities Under Development as of March 31, 2025, 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, 2025 ($154.9 million as of December 31, 2024). There have been no changes to goodwill by reportable segment for the three months ended March 31, 2025. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other Non-Current Assets | March 31, 2025 |  | December 31, 2024
Millions |  |  |
Other Postretirement Benefit Plans | $105.4 |  |  | $107.6 |
Contract Assets (a) | 15.3 |  |  | 15.9 |
ALLETE Properties | 9.2 |  |  | 10.3 |
Restricted Cash | 2.4 |  |  | 2.5 |
Other | 136.7 |  |  | 134.2 |
Total Other Non-Current Assets | $269.0 |  |  | $270.5 |
(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, 2025 |  | December 31, 2024
Millions |  |  |
Provision for Interim Rate Refund | $27.9 |  |  | $23.0 |
Customer Deposits | 9.4 |  |  | 7.8 |
PSAs | 5.8 |  |  | 5.9 |
Other | 53.4 |  |  | 81.2 |
Total Other Current Liabilities | $96.5 |  |  | $117.9 |
Other Non-Current Liabilities | March 31, 2025 |  | December 31, 2024
Millions |  |  |
Asset Retirement Obligation (a)(b) | $265.4 |  |  | $261.3 |
PSAs | 13.6 |  |  | 15.1 |
Other | 35.8 |  |  | 36.4 |
Total Other Non-Current Liabilities | $314.8 |  |  | $312.8 |
(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 March 31, 2025 ($42.3 million as of December 31, 2024). (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 6. Commitments, Guarantees and Contingencies.) NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
|  |  | Three Months Ended
|  |  | March 31,
Other Income (Expense) |  |  |  | 2025 | 2024
Millions |  |  |  |  |
Pension and Other Postretirement Benefit Plan Non-Service Credits (a) |  |  |  | $1.8 |  | $4.3 |
Interest and Investment Income |  |  |  | 1.9 |  | 1.9 |
AFUDC - Equity |  |  |  | 1.4 |  | 1.2 |
Other Income (Expense) |  |  |  | (0.5) |  | 1.2 |
Total Other Income |  |  |  | $4.6 |  | $8.6 |
(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 | 2025 | 2024
Millions |  |
Cash Paid for Interest – Net of Amounts Capitalized | $24.8 |  | $25.7 |
Noncash Investing and Financing Activities |  |
Increase in Accounts Payable for Capital Additions to Property, Plant and Equipment | $(8.9) | $(5.9)
Capitalized Asset Retirement Costs | $2.6 |  | $2.2 |
AFUDC–Equity | $1.4 |  | $1.2 |
New Accounting Pronouncements and Disclosure Rules. See Note 1. Operations and Significant Accounting Policies to the Consolidated Financial Statements in our 2024 Form 10-K. 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.

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