Subsequent Events. The Company performed an evaluation of subsequent events for potential recognition and disclosure through the date of the financial statements issuance.

On July 4, 2025, the budget reconciliation bill H.R. 1 was enacted, which includes various tax reform and other provisions including provisions modifying, terminating, and accelerating the phase out of a wide range of energy tax credits enacted by the Inflation Reduction Act of 2022. We are evaluating the impacts of this legislation on our businesses and consolidated financial statements. We are unable to estimate the impact at this time; however, it could be material.

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 June 30, 2025, restricted cash amounts included in Other Non-Current Assets represent collateral deposits required under an ALLETE Clean Energy PSA. 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	June 30, 2025	December 31, 2024	June 30, 2024	December 31, 2023
Millions
Cash and Cash Equivalents	$55.4	$32.8	$37.5	$71.9
Restricted Cash included in Prepayments and Other	—	19.9	3.8	5.1
Restricted Cash included in Other Non-Current Assets	2.5	2.5	2.4	2.4
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows	$57.9	$55.2	$43.7	$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 and New Energy segments as well as our Corporate and Other businesses are carried at an average cost, first-in, first-out or specific identification basis.


Inventories – Net	June 30, 2025	December 31, 2024
Millions
Fuel (a)	$23.8	$22.5
Materials and Supplies	125.3	107.6
Renewable Energy Facilities Under Development (b)	29.1	24.5



Total Inventories – Net	$178.2	$154.6

(b) Renewable Energy Facilities Under Development as of June 30, 2025, consists primarily of project costs related to renewable energy development projects at New Energy.

Prepayments and Other Current Assets. Prepayments and Other on the Consolidated Balance Sheet included $32.3 million of costs in excess of billings at New Energy as of June 30, 2025 ($32.4 million as of December 31, 2024).

Goodwill. The aggregate carrying amount of goodwill was $154.9 million as of June 30, 2025 ($154.9 million as of December 31, 2024). There have been no changes to goodwill by reportable segment for the six months ended June 30, 2025.


Other Non-Current Assets	June 30, 2025	December 31, 2024
Millions
Other Postretirement Benefit Plans	$103.0	$107.6
Contract Assets (a)	14.8	15.9


ALLETE Properties	9.1	10.3
Restricted Cash	2.5	2.5

Other	138.1	134.2
Total Other Non-Current Assets	$267.5	$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	June 30, 2025	December 31, 2024
Millions
Provision for Interim Rate Refund	—	$23.0
Customer Deposits	$9.0	7.8
PSAs	5.8	5.9







Other	66.9	81.2
Total Other Current Liabilities	$81.7	$117.9


Other Non-Current Liabilities	June 30, 2025	December 31, 2024
Millions
Asset Retirement Obligation (a)	$263.3	$261.3
PSAs	12.2	15.1




Other	35.9	36.4
Total Other Non-Current Liabilities	$311.4	$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 June 30, 2025 ($42.3 million as of December 31, 2024).


	Quarter Ended		Six Months Ended
	June 30,		June 30,
Other Income (Expense)	2025	2024	2025	2024
Millions
Pension and Other Postretirement Benefit Plan Non-Service Credits (a)	$1.5	$3.7	$3.3	$8.0
Interest and Investment Income	2.5	0.8	4.4	2.7
AFUDC - Equity	1.3	1.3	2.7	2.5

Other Income (Expense)	(0.1)	0.1	(0.6)	1.3
Total Other Income	$5.2	$5.9	$9.8	$14.5

(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.)


	Six Months Ended
	June 30,
Supplemental Statement of Cash Flows Information	2025	2024
Millions
Cash Paid for Interest – Net of Amounts Capitalized	$40.5	$36.8
Cash Paid for Income Taxes – Net	$11.1	$5.7
Noncash Investing and Financing Activities

Increase in Accounts Payable for Capital Additions to Property, Plant and Equipment	$13.6	$5.8

Capitalized Asset Retirement Costs	$2.6	$50.0
AFUDC–Equity	$2.7	$2.5

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.