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BUSINESS SEGMENTS | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | BUSINESS SEGMENTS During the first quarter of 2025, management updated our reportable segment presentation to reflect New Energy’s increased contribution to net income attributable to ALLETE. We now present three reportable segments: Regulated Operations, ALLETE Clean Energy and New Energy. Prior period amounts have been revised to conform with the current business segment presentation. We measure performance of our operations through budgeting and monitoring of contributions to net income attributable to ALLETE by each reportable segment. Regulated Operations includes three operating segments which consist of our regulated utilities, Minnesota Power and SWL&P, as well as our investment in ATC. ALLETE Clean Energy is our business focused on developing, acquiring and operating clean and renewable energy projects. New Energy is a renewable energy company with a primary focus on developing solar and energy storage facilities for external sale and internal ownership while also offering comprehensive operations, maintenance and asset management services. We also present Corporate and Other which includes two operating segments, BNI Energy, our coal mining operations in North Dakota, and ALLETE Properties, our legacy Florida real estate investment, along with our investment in Nobles 2, South Shore Energy, our non-rate regulated, Wisconsin subsidiary developing NTEC, other business development and corporate expenditures, unallocated interest expense, a small amount of non-rate base generation, land holdings in Minnesota, and earnings on cash and investments. Management has identified that the Chief Operating Decision Maker (CODM) for the Company is not an individual, but rather the Executive Officers of ALLETE. These individuals represent various areas of the Company and provide direction for the allocation of resources. They interact with one another on a regular basis, with more formal meetings quarterly to discuss company strategy. The group is provided with monthly and quarterly financial materials that show net income attributable to ALLETE by segment with variances compared to the budget and prior year. No other measure of segment profit or loss is provided regularly to this group or used to assess performance and allocate resources. The group reviews the segment profit and loss taking into account the Company’s goals and strategy, and provides direction for the allocation of resources. NOTE 10. BUSINESS SEGMENTS (Continued)
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2025 | 2024 |  | 2025 | 2024
Millions |  |  |  |  |
Operating Revenue |  |  |  |  |
Regulated Operations |  |  |  |  |
Residential | $43.5 |  | $41.9 |  |  | $139.9 |  | $130.5 |
Commercial | 50.1 |  | 49.5 |  |  | 147.1 |  | 143.0 |
Municipal | 9.4 |  | 9.2 |  |  | 27.2 |  | 25.6 |
Industrial | 143.0 |  | 149.8 |  |  | 420.1 |  | 456.1 |
Other Power Suppliers | 47.2 |  | 32.0 |  |  | 141.6 |  | 102.4 |
Other | 27.0 |  | 28.1 |  |  | 82.2 |  | 71.0 |
Total Regulated Operations | 320.2 |  | 310.5 |  |  | 958.1 |  | 928.6 |
ALLETE Clean Energy |  |  |  |  |
Long-term PSA | 10.8 |  | 9.9 |  |  | 39.7 |  | 42.2 |
Sale of Wind Energy Facilities | — |  | 22.9 |  |  | — |  | 22.9 |
Other | 1.5 |  | 1.3 |  |  | 4.4 |  | 3.8 |
Total ALLETE Clean Energy | 12.3 |  | 34.1 |  |  | 44.1 |  | 68.9 |
New Energy |  |  |  |  |
Sale of Renewable Development Projects | 8.0 |  | 29.2 |  |  | 36.2 |  | 68.7 |
Other | 7.9 |  | 2.6 |  |  | 15.7 |  | 8.5 |
Total New Energy | 15.9 |  | 31.8 |  |  | 51.9 |  | 77.2 |
Corporate and Other |  |  |  |  |
Long-term Contract | 23.8 |  | 26.7 |  |  | 72.3 |  | 79.4 |
Other | 2.8 |  | 4.1 |  |  | 9.1 |  | 10.9 |
Total Corporate and Other | 26.6 |  | 30.8 |  |  | 81.4 |  | 90.3 |
Total Operating Revenue | $375.0 |  | $407.2 |  |  | $1,135.5 |  | $1,165.0 |
Net Income (Loss) Attributable to ALLETE |  |  |  |  |
Regulated Operations | $32.5 |  | $34.0 |  |  | $93.9 |  | $111.9 |
ALLETE Clean Energy | (3.6) |  | 3.9 |  |  | 4.7 |  | 10.1 |
New Energy | 1.3 |  | 11.7 |  |  | 15.2 |  | 23.4 |
Corporate and Other | (3.1) |  | (4.6) |  |  | 1.3 |  | (16.7) |
Total Net Income Attributable to ALLETE | $27.1 |  | $45.0 |  |  | $115.1 |  | $128.7 |
NOTE 10. BUSINESS SEGMENTS (Continued)
Quarter Ended September 30, 2025 | Regulated Operations | ALLETE Clean Energy | New Energy | Total Reportable Segments | Corporate and Other / Eliminations | Consolidated
Millions |  |  |  |  |  |
Contracts with Customers – Utility | $320.2 | — | — | $320.2 | — | $320.2
Contracts with Customers – Non-utility | — | $10.8 | $15.9 | 26.7 | $26.6 | 53.3
Other – Non-utility | — | 1.5 | — | 1.5 | — | 1.5
Total Operating Revenue | 320.2 | 12.3 | 15.9 | 348.4 | 26.6 | 375.0
Significant Segment Expenses: |  |  |  |  |  |
Fuel, Purchased Power and Gas – Utility | 121.1 | — | — | 121.1 |  |
Transmission Services – Utility | 19.2 | — | — | 19.2 |  |
Cost of Sales – Non-utility | — | — | 8.8 | 8.8 |  |
Operating and Maintenance | 65.1 | 12.9 | 7.0 | 85.0 |  |
Depreciation and Amortization | 53.3 | 14.5 | 0.9 | 68.7 |  |
Taxes Other than Income Taxes | 13.4 | 2.7 | — | 16.1 |  |
Other Segment Income (Expense) Items (a) | (15.6) | 14.2 | 2.1 | 0.7 |  |
Net Income (Loss) Attributable to ALLETE | $32.5 | $(3.6) | $1.3 | $30.2 | $(3.1) | $27.1
Other Segment Information: |  |  |  |  |  |
Depreciation and Amortization | $53.3 | $14.5 | $0.9 | $68.7 | $3.8 | $72.5
Interest Expense | $(17.7) | — | $(1.3) | $(19.0) | $(6.6) | $(25.6)
Equity Earnings | $6.7 | — | — | $6.7 | $(1.1) | $5.6
Income Tax Expense (Benefit) | $7.9 | $(3.3) | $(1.2) | $3.4 | $(1.8) | $1.6
Assets | $4,864.8 | $1,440.8 | $411.7 | $6,717.3 | $435.6 | $7,152.9
Equity Investment | $215.8 | — | — | $215.8 | $141.9 | $357.7
Capital Expenditures | $237.4 | $1.1 | $20.0 | $258.5 | $3.6 | $262.1
Quarter Ended September 30, 2024 | Regulated Operations | ALLETE Clean Energy | New Energy | Total Reportable Segments | Corporate and Other / Eliminations | Consolidated
Millions |  |  |  |  |  |
Contracts with Customers – Utility | $310.5 | — | — | $310.5 | — | $310.5
Contracts with Customers – Non-utility | — | $32.8 | $31.8 | 64.6 | $30.8 | 95.4
Other – Non-utility | — | 1.3 | — | 1.3 | — | 1.3
Total Operating Revenue | 310.5 | 34.1 | 31.8 | 376.4 | 30.8 | 407.2
Significant Segment Expenses: |  |  |  |  |  |
Fuel, Purchased Power and Gas – Utility | 117.2 | — | — | 117.2 |  |
Transmission Services – Utility | 19.6 | — | — | 19.6 |  |
Cost of Sales – Non-utility | — | 18.3 | 8.3 | 26.6 |  |
Operating and Maintenance | 63.6 | 12.3 | 6.5 | 82.4 |  |
Depreciation and Amortization | 52.2 | 14.4 | 0.5 | 67.1 |  |
Taxes Other than Income Taxes | 12.4 | 2.2 | — | 14.6 |  |
Other Segment Income (Expense) Items (a) | (11.5) | 17.0 | (4.8) | 0.7 |  |
Net Income (Loss) Attributable to ALLETE | $34.0 | $3.9 | $11.7 | $49.6 | $(4.6) | $45.0
Other Segment Information: |  |  |  |  |  |
Depreciation and Amortization | $52.2 | $14.4 | $0.5 | $67.1 | $3.7 | $70.8
Interest Expense | $(16.7) | — | $(1.0) | $(17.7) | $(2.6) | $(20.3)
Equity Earnings | $6.1 | — | — | $6.1 | $(1.0) | $5.1
Income Tax Expense (Benefit) | $5.0 | $(4.8) | $4.2 | $4.4 | $(1.5) | $2.9
Assets | $4,410.3 | $1,581.6 | $333.3 | $6,325.2 | $412.0 | $6,737.2
Equity Investment | $190.3 | — | — | $190.3 | $147.6 | $337.9
Capital Expenditures | $73.8 | $2.7 | $8.2 | $84.7 | $1.1 | $85.8
(a) Other Segment Income Items consist of interest expense, equity earnings, AFUDC – Equity and income tax expense for Regulated Operations, and interest expense, income tax benefit and net loss attributable to non-controlling interest for ALLETE Clean Energy and New Energy. NOTE 10. BUSINESS SEGMENTS (Continued)
Nine Months Ended September 30, 2025 | Regulated Operations | ALLETE Clean Energy | New Energy | Total Reportable Segments | Corporate and Other / Eliminations | Consolidated
Millions |  |  |  |  |  |
Contracts with Customers – Utility | $958.1 |  | — |  | — |  | $958.1 |  | — |  | $958.1 |
Contracts with Customers – Non-utility | — |  | $39.7 |  | $51.9 |  | 91.6 |  | $81.4 |  | 173.0 |
Other – Non-utility | — |  | 4.4 |  | — |  | 4.4 |  | — |  | 4.4 |
Total Operating Revenue | 958.1 |  | 44.1 |  | 51.9 |  | 1,054.1 |  | 81.4 |  | 1,135.5 |
Significant Segment Expenses: |  |  |  |  |  |
Fuel, Purchased Power and Gas – Utility | 358.5 |  | — |  | — |  | 358.5 |  |  |
Transmission Services – Utility | 57.5 |  | — |  | — |  | 57.5 |  |  |
Cost of Sales – Non-utility | — |  | — |  | 22.4 |  | 22.4 |  |  |
Operating and Maintenance | 202.4 |  | 40.6 |  | 19.2 |  | 262.2 |  |  |
Depreciation and Amortization | 158.1 |  | 43.5 |  | 2.0 |  | 203.6 |  |  |
Taxes Other than Income Taxes | 40.0 |  | 8.2 |  | — |  | 48.2 |  |  |
Other Segment Income (Expense) Items (a) | (47.7) |  | 52.9 |  | 6.9 |  | 12.1 |  |  |
Net Income Attributable to ALLETE | $93.9 |  | $4.7 |  | $15.2 |  | $113.8 | $1.3 | $115.1 |
Other Segment Information: |  |  |  |  |  |
Depreciation and Amortization | $158.1 |  | $43.5 |  | $2.0 |  | $203.6 |  | $11.8 |  | $215.4 |
Interest Expense | $(52.2) | — | $(2.9) | $(55.1) | $(15.0) | $(70.1)
Equity Earnings | $19.6 |  | — |  | — |  | $19.6 |  | $(2.1) | $17.5 |
Income Tax Expense (Benefit) | $23.3 | $(8.5) | $(0.2) | $14.6 |  | $(6.1) | $8.5
Assets | $4,864.8 |  | $1,440.8 |  | $411.7 |  | $6,717.3 |  | $435.6 |  | $7,152.9 |
Equity Investment | $215.8 |  | — |  | — |  | $215.8 |  | $141.9 |  | $357.7 |
Capital Expenditures | $489.2 |  | $5.3 |  | $36.1 |  | $530.6 |  | $7.2 |  | $537.8 |
Nine Months Ended September 30, 2024 | Regulated Operations | ALLETE Clean Energy | New Energy | Total Reportable Segments | Corporate and Other / Eliminations | Consolidated
Millions |  |  |  |  |  |
Contracts with Customers – Utility | $928.6 |  | — |  | — |  | $928.6 |  | — |  | $928.6 |
Contracts with Customers – Non-utility | — |  | $65.1 |  | $77.2 |  | 142.3 |  | $90.3 |  | 232.6 |
Other – Non-utility | — |  | 3.8 |  | — |  | 3.8 |  | — |  | 3.8 |
Total Operating Revenue | 928.6 |  | 68.9 |  | 77.2 |  | 1,074.7 |  | 90.3 |  | 1,165.0 |
Significant Segment Expenses: |  |  |  |  |  |
Fuel, Purchased Power and Gas – Utility | 358.9 |  | — |  | — |  | 358.9 |  |  |
Transmission Services – Utility | 43.9 |  | — |  | — |  | 43.9 |  |  |
Cost of Sales – Non-utility | — |  | 18.3 |  | 25.3 |  | 43.6 |  |  |
Operating and Maintenance | 197.1 |  | 37.5 |  | 18.9 |  | 253.5 |  |  |
Depreciation and Amortization | 145.4 |  | 43.2 |  | 1.5 |  | 190.1 |  |  |
Taxes Other than Income Taxes | 41.8 |  | 6.7 |  | — |  | 48.5 |  |  |
Other Segment Income (Expense) Items (a) | (29.6) |  | 46.9 |  | (8.1) |  | 9.2 |  |  |
Net Income (Loss) Attributable to ALLETE | $111.9 |  | $10.1 |  | $23.4 |  | $145.4 | $(16.7) | $128.7 |
Other Segment Information: |  |  |  |  |  |
Depreciation and Amortization | $145.4 |  | $43.2 |  | $1.5 |  | $190.1 |  | $11.7 |  | $201.8 |
Interest Expense | $(49.0) | $(0.2) | $(3.3) | $(52.5) | $(8.3) | $(60.8)
Equity Earnings | $17.8 |  | — |  | — |  | $17.8 |  | $(1.3) | $16.5 |
Income Tax Expense (Benefit) | $13.7 | $(13.3) | $7.8 |  | $8.2 |  | $0.1 |  | $8.3 |
Assets | $4,410.3 |  | $1,581.6 |  | $333.3 |  | $6,325.2 |  | $412.0 |  | $6,737.2 |
Equity Investment | $190.3 |  | — |  | — |  | $190.3 |  | $147.6 |  | $337.9 |
Capital Expenditures | $203.8 |  | $4.3 | $13.3 |  | $221.4 |  | $8.1 |  | $229.5 |
(a) Other Segment Items consist of interest expense, equity earnings, AFUDC – Equity and income tax expense for Regulated Operations, and interest expense, income tax benefit and net loss attributable to non-controlling interest for ALLETE Clean Energy and New Energy.

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