(Mark One) | ||||||||
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||
For the transition period from ______________ to ______________ |
Minnesota | 41-0418150 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, without par value | ALE | New York Stock Exchange |
Abbreviation or Acronym | Term | ||||
AFUDC | Allowance for Funds Used During Construction - the cost of both debt and equity funds used to finance utility plant additions during construction periods | ||||
ALLETE | ALLETE, Inc. | ||||
ALLETE Clean Energy | ALLETE Clean Energy, Inc. and its subsidiaries | ||||
ALLETE Properties | ALLETE Properties, LLC and its subsidiaries | ||||
ALLETE South Wind | ALLETE South Wind, LLC | ||||
ALLETE Transmission Holdings | ALLETE Transmission Holdings, Inc. | ||||
ArcelorMittal | ArcelorMittal USA | ||||
American Transmission Company LLC | |||||
Basin | Basin Electric Power Cooperative | ||||
Bison | Bison Wind Energy Center | ||||
BNI Energy | BNI Energy, Inc. and its subsidiary | ||||
Boswell | Boswell Energy Center | ||||
Camp Ripley | Camp Ripley Solar Array | ||||
CIP | Conservation Improvement Program | ||||
Cliffs | Cleveland-Cliffs Inc. | ||||
ALLETE, Inc. and its subsidiaries | |||||
Direct Current | |||||
EIS | Environmental Impact Statement | ||||
EPA | United States Environmental Protection Agency | ||||
ESOP | Employee Stock Ownership Plan | ||||
FASB | Financial Accounting Standards Board | ||||
FERC | Federal Energy Regulatory Commission | ||||
Form 8-K | ALLETE Current Report on Form 8-K | ||||
Form 10-K | ALLETE Annual Report on Form 10-K | ||||
Form 10-Q | ALLETE Quarterly Report on Form 10-Q | ||||
GAAP | Generally Accepted Accounting Principles in the United States of America | ||||
GHG | Greenhouse Gases | ||||
GNTL | Great Northern Transmission Line | ||||
Hibbing Taconite | Hibbing Taconite Co. | ||||
Husky Energy | Husky Energy Inc. | ||||
Invest Direct | ALLETE’s Direct Stock Purchase and Dividend Reinvestment Plan | ||||
IRP | Integrated Resource Plan | ||||
Item ___ | Item ___ of this Form 10-K | ||||
kV | Kilovolt(s) | ||||
kW / kWh | Kilowatt(s) / Kilowatt-hour(s) | ||||
Lampert Capital Markets, Inc. | |||||
Laskin | Laskin Energy Center | ||||
Manitoba Hydro | Manitoba Hydro-Electric Board | ||||
MBtu | Million British thermal units | ||||
Abbreviation or Acronym | Term | |||||
Minnesota Power | An operating division of ALLETE, Inc. | |||||
Minnkota Power | Minnkota Power Cooperative, Inc. | |||||
MISO | Midcontinent Independent System Operator, Inc. | |||||
MMTP | Manitoba-Minnesota Transmission Project | |||||
Montana-Dakota Utilities | Montana-Dakota Utilities Co., a | |||||
Moody’s | Moody’s Investors Service, Inc. | |||||
MPCA | Minnesota Pollution Control Agency | |||||
MPUC | Minnesota Public Utilities Commission | |||||
MW / MWh | Megawatt(s) / Megawatt-hour(s) | |||||
National Ambient Air Quality Standards | ||||||
NDPSC | North Dakota Public Service Commission | |||||
NERC | North American Electric Reliability Corporation | |||||
Nobles 2 | Nobles 2 Power Partners, LLC | |||||
NOL | Net Operating Loss | |||||
NOX | Nitrogen Oxides | |||||
Northshore Mining | Northshore Mining Company, a wholly-owned subsidiary of Cliffs | |||||
Note ___ | Note ___ to the consolidated financial statements in this Form 10-K | |||||
NPDES | National Pollutant Discharge Elimination System | |||||
NTEC | Nemadji Trail Energy Center | |||||
NYSE | New York Stock Exchange | |||||
Oliver Wind I | Oliver Wind I Energy Center | |||||
Oliver Wind II | Oliver Wind II Energy Center | |||||
PolyMet | PolyMet Mining Corp. | |||||
PPA / PSA | Power Purchase Agreement / Power Sales Agreement | |||||
PPACA | Patient Protection and Affordable Care Act of 2010 | |||||
PSCW | Public Service Commission of Wisconsin | |||||
RSOP | Retirement Savings and Stock Ownership Plan | |||||
SEC | Securities and Exchange Commission | |||||
S&P | S&P Global Ratings | |||||
Silver Bay Power | Silver Bay Power Company, a wholly-owned subsidiary of Cliffs | |||||
SO2 | Sulfur Dioxide | |||||
Square Butte | Square Butte Electric Cooperative, a North Dakota cooperative corporation | |||||
SWL&P | Superior Water, Light and Power Company | |||||
Taconite Harbor | Taconite Harbor Energy Center | |||||
Taconite Ridge | Taconite Ridge Energy Center | |||||
TCJA | Tax Cuts and Jobs Act of 2017 (Public Law 115-97) | |||||
Town Center District | Town Center at Palm Coast Community Development District in Florida | |||||
United Taconite | United Taconite LLC, a wholly-owned subsidiary of Cliffs | |||||
UPM Blandin | UPM, Blandin paper mill owned by UPM-Kymmene Corporation | |||||
U.S. | United States of America | |||||
U.S. Water Services | U.S. Water Services, Inc. and its subsidiaries | |||||
USS Corporation | United States Steel Corporation | |||||
WTG | Wind Turbine Generator |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Consolidated Operating Revenue – Millions (a)(b) | $1,169.1 | $1,240.5 | $1,498.6 | ||||||||
Percentage of Consolidated Operating Revenue | |||||||||||
Regulated Operations | 84 | % | 84 | % | 71 | % | |||||
ALLETE Clean Energy (a) | 7 | % | 5 | % | 11 | % | |||||
U.S. Water Services (b) | — | 3 | % | 11 | % | ||||||
Corporate and Other | 9 | % | 8 | % | 7 | % | |||||
100 | % | 100 | % | 100 | % |
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Consolidated Operating Revenue – Millions (a) | $1,498.6 | $1,419.3 | $1,339.7 | ||||||
Percentage of Consolidated Operating Revenue | |||||||||
Regulated Operations | 71 | % | 75 | % | 75 | % | |||
ALLETE Clean Energy (a) | 11 | % | 6 | % | 6 | % | |||
U.S. Water Services | 11 | % | 11 | % | 10 | % | |||
Corporate and Other | 7 | % | 8 | % | 9 | % | |||
100 | % | 100 | % | 100 | % |
Regulated Utility Kilowatt-hours Sold | ||||||||||||||||||||
Year Ended December 31 | 2020 | % | 2019 | % | 2018 | % | ||||||||||||||
Millions | ||||||||||||||||||||
Retail and Municipal | ||||||||||||||||||||
Residential | 1,134 | 9 | 1,130 | 8 | 1,140 | 8 | ||||||||||||||
Commercial | 1,306 | 10 | 1,390 | 10 | 1,426 | 10 | ||||||||||||||
Industrial | 6,192 | 47 | 7,277 | 54 | 7,261 | 50 | ||||||||||||||
Municipal | 584 | 4 | 672 | 5 | 798 | 5 | ||||||||||||||
Total Retail and Municipal | 9,216 | 70 | 10,469 | 77 | 10,625 | 73 | ||||||||||||||
Other Power Suppliers | 4,039 | 30 | 3,185 | 23 | 3,953 | 27 | ||||||||||||||
Total Regulated Utility Kilowatt-hours Sold | 13,255 | 100 | 13,654 | 100 | 14,578 | 100 |
Regulated Utility Kilowatt-hours Sold | |||||||||
Year Ended December 31 | 2018 | % | 2017 | % | 2016 | % | |||
Millions | |||||||||
Retail and Municipal | |||||||||
Residential | 1,140 | 8 | 1,096 | 7 | 1,102 | 8 | |||
Commercial | 1,426 | 10 | 1,420 | 10 | 1,442 | 10 | |||
Industrial | 7,261 | 50 | 7,327 | 50 | 6,456 | 45 | |||
Municipal | 798 | 5 | 799 | 5 | 816 | 6 | |||
Total Retail and Municipal | 10,625 | 73 | 10,642 | 72 | 9,816 | 69 | |||
Other Power Suppliers | 3,953 | 27 | 4,039 | 28 | 4,316 | 31 | |||
Total Regulated Utility Kilowatt-hours Sold | 14,578 | 100 | 14,681 | 100 | 14,132 | 100 |
Industrial Customer Kilowatt-hours Sold | |||||||||
Year Ended December 31 | 2018 | % | 2017 | % | 2016 | % | |||
Millions | |||||||||
Taconite/Iron Concentrate | 5,039 | 69 | 4,930 | 67 | 3,906 | 61 | |||
Paper, Pulp and Secondary Wood Products | 987 | 14 | 1,104 | 15 | 1,303 | 20 | |||
Pipelines and Other Industrial | 1,235 | 17 | 1,293 | 18 | 1,247 | 19 | |||
Total Industrial Customer Kilowatt-hours Sold | 7,261 | 100 | 7,327 | 100 | 6,456 | 100 |
Industrial Customer Kilowatt-hours Sold | ||||||||||||||||||||
Year Ended December 31 | 2020 | % | 2019 | % | 2018 | % | ||||||||||||||
Millions | ||||||||||||||||||||
Taconite | 4,296 | 69 | 5,039 | 69 | 5,039 | 69 | ||||||||||||||
Paper, Pulp and Secondary Wood Products | 752 | 12 | 1,014 | 14 | 987 | 14 | ||||||||||||||
Pipelines and Other Industrial | 1,144 | 19 | 1,224 | 17 | 1,235 | 17 | ||||||||||||||
Total Industrial Customer Kilowatt-hours Sold | 6,192 | 100 | 7,277 | 100 | 7,261 | 100 |
Minnesota Power Taconite Customer Production | ||||||||
Year | Tons (Millions) | |||||||
2020* | 30 | |||||||
2019 | 37 | |||||||
2018 | 39 | |||||||
2017 | 38 | |||||||
2016 | 28 | |||||||
2015 | 31 | |||||||
2014 | 39 | |||||||
2013 | 37 | |||||||
2012 | 39 | |||||||
2011 | 39 | |||||||
Source: Minnesota Department of Revenue 2020 Mining Tax Guide for years 2011 - 2019. | ||||||||
* Preliminary data from the Minnesota Department of Revenue. |
Minnesota Power Taconite Customer Production | ||
Year | Tons (Millions) | |
2018* | 38 | |
2017 | 38 | |
2016 | 28 | |
2015 | 31 | |
2014 | 39 | |
2013 | 37 | |
2012 | 39 | |
2011 | 39 | |
2010 | 35 | |
2009 | 17 | |
Source: Minnesota Department of Revenue 2018 Mining Tax Guide for years 2009 - 2017. | ||
* Preliminary data from the Minnesota Department of Revenue. |
Customer | Industry | Location | Ownership | Earliest Termination Date | ||||||||||
Cliffs – Minorca Mine(a) | Taconite | Virginia, MN | December 31, 2025 | |||||||||||
Hibbing Taconite | Taconite | Hibbing, MN | 14.7% USS Corporation | December 31, | ||||||||||
United Taconite and Northshore Mining | Taconite | Eveleth, MN and Babbitt, MN | Cliffs | December 31, 2026 | ||||||||||
USS Corporation (USS – Minnesota Ore) | Taconite | USS Corporation | December 31, | |||||||||||
Boise, Inc.(b) | Paper | International Falls, MN | Packaging Corporation of America | December 31, | ||||||||||
UPM Blandin | Paper | Grand Rapids, MN | UPM-Kymmene Corporation | December 31, 2029 | ||||||||||
Verso Duluth Mill | Paper and Pulp | Duluth, MN | Verso Corporation | |||||||||||
Sappi Cloquet LLC | Paper and Pulp | Cloquet, MN | Sappi Limited | December 31, |
Year Ended | ||||||||||||||||||||
Unit | Year | Net | December 31, 2020 | |||||||||||||||||
Regulated Utility Power Supply | No. | Installed | Capability | Generation and Purchases | ||||||||||||||||
MW | MWh | % | ||||||||||||||||||
Coal-Fired | ||||||||||||||||||||
Boswell Energy Center (a) | 3 | 1973 | 355 | |||||||||||||||||
in Cohasset, MN | 4 | 1980 | 468 | (b) | ||||||||||||||||
823 | 3,673,480 | 26.9 | ||||||||||||||||||
Taconite Harbor Energy Center | 1 | 1957 | 75 | |||||||||||||||||
in Schroeder, MN | 2 | 1957 | 75 | |||||||||||||||||
150 | (c) | — | — | |||||||||||||||||
Total Coal-Fired | 973 | 3,673,480 | 26.9 | |||||||||||||||||
Biomass Co-Fired / Natural Gas | ||||||||||||||||||||
Hibbard Renewable Energy Center in Duluth, MN | 3 & 4 | 1949, 1951 | 62 | 30,858 | 0.2 | |||||||||||||||
Laskin Energy Center in Hoyt Lakes, MN | 1 & 2 | 1953 | 110 | 16,473 | 0.1 | |||||||||||||||
Total Biomass Co-Fired / Natural Gas | 172 | 47,331 | 0.3 | |||||||||||||||||
Hydro (d) | ||||||||||||||||||||
Group consisting of ten stations in MN | Multiple | Multiple | 120 | 546,847 | 4.0 | |||||||||||||||
Wind (e) | ||||||||||||||||||||
Taconite Ridge Energy Center in Mt. Iron, MN | Multiple | 2008 | 25 | 59,419 | 0.5 | |||||||||||||||
Bison Wind Energy Center in Oliver and Morton Counties, ND | Multiple | 2010-2014 | 497 | 1,700,098 | 12.4 | |||||||||||||||
Total Wind | 522 | 1,759,517 | 12.9 | |||||||||||||||||
Solar (f) | ||||||||||||||||||||
Group consisting of two solar arrays in MN | Multiple | Multiple | 10 | 16,230 | 0.1 | |||||||||||||||
Total Generation | 1,797 | 6,043,405 | 44.2 | |||||||||||||||||
Long-Term Purchased Power | ||||||||||||||||||||
Lignite Coal - Square Butte near Center, ND (g) | 1,466,584 | 10.7 | ||||||||||||||||||
Wind - Oliver Wind I and II in Oliver County, ND | 309,324 | 2.3 | ||||||||||||||||||
Wind - Nobles 2 in Nobles County, MN (h) | 52,477 | 0.4 | ||||||||||||||||||
Hydro - Manitoba Hydro in Manitoba, Canada | 1,052,539 | 7.7 | ||||||||||||||||||
Total Long-Term Purchased Power | 2,880,924 | 21.1 | ||||||||||||||||||
Other Purchased Power (i) | 4,749,729 | 34.7 | ||||||||||||||||||
Total Purchased Power | 7,630,653 | 55.8 | ||||||||||||||||||
Total Regulated Utility Power Supply | 13,674,058 | 100.0 |
Year Ended | ||||||||
Unit | Year | Net | December 31, 2018 | |||||
Regulated Utility Power Supply | No. | Installed | Capability | Generation and Purchases | ||||
MW | MWh | % | ||||||
Coal-Fired | ||||||||
Boswell Energy Center | 1 | 1958 | 67 | (a) | ||||
in Cohasset, MN | 2 | 1960 | 68 | (a) | ||||
3 | 1973 | 355 | ||||||
4 | 1980 | 468 | (b) | |||||
958 | 6,442,894 | 42.9 | ||||||
Taconite Harbor Energy Center | 1 | 1957 | 75 | |||||
in Schroeder, MN | 2 | 1957 | 75 | |||||
150 | (c) | — | — | |||||
Total Coal-Fired | 1,108 | 6,442,894 | 42.9 | |||||
Biomass Co-Fired / Natural Gas | ||||||||
Hibbard Renewable Energy Center in Duluth, MN | 3 & 4 | 1949, 1951 | 62 | 10,286 | 0.1 | |||
Laskin Energy Center in Hoyt Lakes, MN | 1 & 2 | 1953 | 110 | 13,893 | 0.1 | |||
Total Biomass Co-Fired / Natural Gas | 172 | 24,179 | 0.2 | |||||
Hydro (d) | ||||||||
Group consisting of ten stations in MN | Multiple | Multiple | 120 | 607,664 | 4.0 | |||
Wind (e) | ||||||||
Taconite Ridge Energy Center in Mt. Iron, MN | Multiple | 2008 | 25 | 50,813 | 0.3 | |||
Bison Wind Energy Center in Oliver and Morton Counties, ND | Multiple | 2010-2014 | 497 | 1,496,131 | 10.0 | |||
Total Wind | 522 | 1,546,944 | 10.3 | |||||
Solar | ||||||||
Camp Ripley Solar Array near Little Falls, MN | Multiple | 2016 | 10 | 16,744 | 0.1 | |||
Total Generation | 1,932 | 8,638,425 | 57.5 | |||||
Long-Term Purchased Power | ||||||||
Lignite Coal - Square Butte near Center, ND (f) | 1,717,616 | 11.4 | ||||||
Wind - Oliver County, ND | 295,101 | 2.0 | ||||||
Hydro - Manitoba Hydro in Manitoba, Canada | 292,148 | 1.9 | ||||||
Total Long-Term Purchased Power | 2,304,865 | 15.3 | ||||||
Other Purchased Power (g) | 4,087,176 | 27.2 | ||||||
Total Purchased Power | 6,392,041 | 42.5 | ||||||
Total Regulated Utility Power Supply | 1,932 | 15,030,466 | 100.0 |
Coal Delivered to Minnesota Power | |||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Average Price per Ton | $34.94 | $35.31 | $38.89 | ||||||||
Average Price per MBtu | $1.93 | $1.94 | $2.10 |
Coal Delivered to Minnesota Power | |||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Average Price per Ton | $38.89 | $36.50 | $35.87 | ||||||
Average Price per MBtu | $2.10 | $2.01 | $1.98 |
Region | Wind Energy Facility | Capacity MW | PSA MW | PSA Expiration | ||||||||||
East | Armenia Mountain | 101 | 100% | 2024 | ||||||||||
Midwest | Chanarambie/Viking | 98 | ||||||||||||
PSA 1 (a) | 12% | 2023 | ||||||||||||
PSA 2 | 88% | 2023 | ||||||||||||
Lake Benton | 104 | 100% | 2028 | |||||||||||
Storm Lake I | 108 | 100% | 2027 | |||||||||||
Storm Lake II | 77 | |||||||||||||
PSA 1 | 90% | 2022 | ||||||||||||
PSA 2 | 10% | 2032 | ||||||||||||
Other | 17 | 100% | 2028 | |||||||||||
South | Diamond Spring | 303 | ||||||||||||
PSA 1 | 58% | 2035 | ||||||||||||
PSA 2 | 25% | 2032 | ||||||||||||
PSA 3 | 16% | 2035 | ||||||||||||
West | Condon | 50 | 100% | 2022 | ||||||||||
Glen Ullin | 106 | 100% | 2039 | |||||||||||
South Peak | 80 | 100% | 2035 |
Wind Energy Facility | Location | Capacity MW | PSA MW | PSA Expiration |
Armenia Mountain | Pennsylvania | 100.5 | 100% | 2024 |
Chanarambie/Viking | Minnesota | 97.5 | ||
PSA 1 (a) | 12% | 2023 | ||
PSA 2 | 88% | 2023 | ||
Condon | Oregon | 50 | 100% | 2022 |
Lake Benton | Minnesota | 104 | 100% | 2028 |
Lincoln Heights | Minnesota | 8.8 | 100% | 2028 |
Storm Lake I | Iowa | 108 | 100% | 2019 |
Storm Lake II | Iowa | 77 | ||
PSA 1 | 90% | 2019 | ||
PSA 2 | 10% | 2032 |
Summary of Projects | Residential | Non-residential | |||||||
As of December 31, 2018 | Acres (a) | Units (b) | Sq. Ft. (b)(c) | ||||||
Projects | |||||||||
Town Center at Palm Coast | 962 | 2,419 | 2,022,700 | ||||||
Palm Coast Park | 638 | — | 1,181,000 | ||||||
Total Projects | 1,600 | 2,419 | 3,203,700 |
Non-Rate Base Power Supply | Unit No. | Year Installed | Year Acquired | Net Capability (MW) |
Rapids Energy Center (a) | ||||
in Grand Rapids, MN | ||||
Steam – Biomass (b) | 6 & 7 | 1969, 1980 | 2000 | 27 |
Hydro | 4 & 5 | 1917, 1948 | 2000 | 2 |
Executive Officers | Initial Effective Date | ||||
Alan R. Hodnik, Age 61 | |||||
Executive Chairman (a) | February 3, 2020 | ||||
Chairman and Chief Executive Officer | January 31, 2019 | ||||
Chairman, President and Chief Executive Officer | May 10, 2011 | ||||
President | |||||
January 31, 2019 | |||||
Senior Vice President and Chief Legal and Administrative Officer | November 26, 2016 | ||||
Robert J. Adams, Age | |||||
Senior Vice President and Chief Financial Officer | March 4, 2017 | ||||
Senior Vice President – Energy-Centric Businesses and Chief Risk Officer | November 14, 2015 | ||||
Patrick L. Cutshall, Age | |||||
Vice President and Corporate Treasurer | December 18, 2017 | ||||
Treasurer | January 1, 2016 | ||||
Nicole R. Johnson, Age 46 | |||||
Vice President and Chief Administrative Officer | June 28, 2019 | ||||
Steven W. Morris, Age | |||||
Vice President, Controller and Chief Accounting Officer | December 24, 2016 | ||||
Controller | March 3, 2014 | ||||
Margaret A. Thickens, Age | |||||
Vice President, Chief Legal Officer and Corporate Secretary | February 13, 2019 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
ALLETE | $100 | $131 | $156 | $165 | $181 | $144 | ||||||||||||||
S&P 500 Index | $100 | $112 | $136 | $130 | $171 | $203 | ||||||||||||||
Philadelphia Utility Index | $100 | $117 | $132 | $137 | $174 | $179 |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |
ALLETE | $100 | $115 | $110 | $144 | $172 | $182 |
S&P 500 Index | $100 | $114 | $115 | $129 | $157 | $150 |
Philadelphia Utility Index | $100 | $129 | $121 | $142 | $160 | $166 |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||
Millions Except Per Share Amounts | |||||||||||||||
Operating Revenue (a) | $1,498.6 | $1,419.3 | $1,339.7 | $1,486.4 | $1,136.8 | ||||||||||
Operating Expenses (a) | $1,297.4 | $1,193.4 | $1,122.7 | $1,274.7 | $946.9 | ||||||||||
Net Income (b) | $174.1 | $172.2 | $155.8 | $141.5 | $125.5 | ||||||||||
Less: Non-Controlling Interest in Subsidiaries (c) | — | — | 0.5 | 0.4 | 0.7 | ||||||||||
Net Income Attributable to ALLETE (b) | $174.1 | $172.2 | $155.3 | $141.1 | $124.8 | ||||||||||
Common Stock Dividends | 115.0 | 108.7 | 102.7 | 97.9 | 83.8 | ||||||||||
Earnings Retained in Business (b) | $59.1 | $63.5 | $52.6 | $43.2 | $41.0 | ||||||||||
Shares Outstanding | |||||||||||||||
Year-End | 51.5 | 51.1 | 49.6 | 49.1 | 45.9 | ||||||||||
Average (d) | |||||||||||||||
Basic | 51.3 | 50.8 | 49.3 | 48.3 | 42.9 | ||||||||||
Diluted | 51.5 | 51.0 | 49.5 | 48.4 | 43.1 | ||||||||||
Diluted Earnings Per Share (b) | $3.38 | $3.38 | $3.14 | $2.92 | $2.90 | ||||||||||
Total Assets | $5,165.0 | $5,080.0 | $4,876.9 | $4,864.4 | $4,329.1 | ||||||||||
Long-Term Debt | $1,428.5 | $1,439.2 | $1,370.4 | $1,556.7 | $1,263.2 | ||||||||||
Return on Common Equity (b) | 8.3 | % | 8.6 | % | 8.4 | % | 8.0 | % | 8.6 | % | |||||
Common Equity Ratio | 59 | % | 58 | % | 55 | % | 53 | % | 54 | % | |||||
Dividends Declared per Common Share | $2.24 | $2.14 | $2.08 | $2.02 | $1.96 | ||||||||||
Dividend Payout Ratio (b) | 66 | % | 63 | % | 66 | % | 69 | % | 68 | % | |||||
Book Value Per Share at Year-End | $41.85 | $40.46 | $38.17 | $37.18 | $35.04 | ||||||||||
Capital Expenditures by Segment | |||||||||||||||
Regulated Operations | $211.9 | $177.1 | $121.8 | $224.4 | $583.5 | ||||||||||
ALLETE Clean Energy | 89.7 | 56.1 | 106.9 | 8.6 | 4.2 | ||||||||||
U.S. Water Services | 5.0 | 4.4 | 3.7 | 2.9 | — | ||||||||||
Corporate and Other | 12.0 | 28.9 | 15.4 | 15.9 | 16.6 | ||||||||||
Total Capital Expenditures | $318.6 | $266.5 | $247.8 | $251.8 | $604.3 |
Year Ended December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Operating Revenue – Utility | $987.3 | $1,042.4 | ||||||
Fuel, Purchased Power and Gas – Utility | 358.6 | 390.7 | ||||||
Transmission Services – Utility | 67.0 | 69.8 | ||||||
Operating and Maintenance | 200.9 | 201.9 | ||||||
Depreciation and Amortization | 166.9 | 159.4 | ||||||
Taxes Other than Income Taxes | 50.7 | 48.4 | ||||||
Operating Income | 143.2 | 172.2 | ||||||
Interest Expense | (58.5) | (58.9) | ||||||
Equity Earnings | 22.3 | 21.7 | ||||||
Other Income | 9.9 | 12.3 | ||||||
Income Before Income Taxes | 116.9 | 147.3 | ||||||
Income Tax Benefit | (19.4) | (7.1) | ||||||
Net Income Attributable to ALLETE | $136.3 | $154.4 |
Year Ended December 31 | 2018 | 2017 | ||||
Millions | ||||||
Operating Revenue – Utility | $1,059.5 | $1,063.8 | ||||
Fuel, Purchased Power and Gas – Utility | 407.5 | 396.9 | ||||
Transmission Services – Utility | 69.9 | 71.2 | ||||
Operating and Maintenance | 220.1 | 227.3 | ||||
Depreciation and Amortization | 158.0 | 132.6 | ||||
Taxes Other than Income Taxes | 52.5 | 51.1 | ||||
Operating Income | 151.5 | 184.7 | ||||
Interest Expense | (60.2 | ) | (57.0 | ) | ||
Equity Earnings in ATC | 17.5 | 22.5 | ||||
Other Income | 6.7 | 5.4 | ||||
Income Before Income Taxes | 115.5 | 155.6 | ||||
Income Tax Expense (Benefit) | (15.5 | ) | 27.2 | |||
Net Income Attributable to ALLETE | $131.0 | $128.4 |
Kilowatt-hours Sold | 2020 | 2019 | Quantity Variance | % Variance | ||||||||||
Millions | ||||||||||||||
Regulated Utility | ||||||||||||||
Retail and Municipal | ||||||||||||||
Residential | 1,134 | 1,130 | 4 | 0.4 | ||||||||||
Commercial | 1,306 | 1,390 | (84) | (6.0) | ||||||||||
Industrial | 6,192 | 7,277 | (1,085) | (14.9) | ||||||||||
Municipal | 584 | 672 | (88) | (13.1) | ||||||||||
Total Retail and Municipal | 9,216 | 10,469 | (1,253) | (12.0) | ||||||||||
Other Power Suppliers | 4,039 | 3,185 | 854 | 26.8 | ||||||||||
Total Regulated Utility Kilowatt-hours Sold | 13,255 | 13,654 | (399) | (2.9) |
Kilowatt-hours Sold | 2018 | 2017 | Quantity Variance | % Variance | ||||
Millions | ||||||||
Regulated Utility | ||||||||
Retail and Municipal | ||||||||
Residential | 1,140 | 1,096 | 44 | 4.0 | ||||
Commercial | 1,426 | 1,420 | 6 | 0.4 | ||||
Industrial | 7,261 | 7,327 | (66 | ) | (0.9 | ) | ||
Municipal | 798 | 799 | (1 | ) | (0.1 | ) | ||
Total Retail and Municipal | 10,625 | 10,642 | (17 | ) | (0.2 | ) | ||
Other Power Suppliers | 3,953 | 4,039 | (86 | ) | (2.1 | ) | ||
Total Regulated Utility Kilowatt-hours Sold | 14,578 | 14,681 | (103 | ) | (0.7 | ) |
Year Ended December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Operating Revenue | ||||||||
Contracts with Customers – Non-utility | $68.3 | $48.0 | ||||||
Other – Non-utility (a) | 11.3 | 11.6 | ||||||
Operating and Maintenance | 37.4 | 29.5 | ||||||
Depreciation and Amortization | 37.9 | 26.8 | ||||||
Taxes Other than Income Taxes | 3.3 | 2.1 | ||||||
Operating Income | 1.0 | 1.2 | ||||||
Interest Expense | (2.2) | (2.8) | ||||||
Other Income | 0.2 | 2.0 | ||||||
Income (Loss) Before Income Taxes | (1.0) | 0.4 | ||||||
Income Tax Benefit | (19.1) | (11.9) | ||||||
Net Income | 18.1 | 12.3 | ||||||
Net Loss Attributable to Non-Controlling Interest (b) | (11.8) | (0.1) | ||||||
Net Income Attributable to ALLETE | $29.9 | $12.4 |
Year Ended December 31 | 2018 | 2017 | ||||
Millions | ||||||
Operating Revenue | $159.9 | $80.5 | ||||
Net Income Attributable to ALLETE (a) | $33.7 | $41.5 |
Year Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Production and Operating Revenue | kWh | Revenue | kWh | Revenue | ||||||||||
Millions | ||||||||||||||
Wind Energy Regions | ||||||||||||||
East | 262.2 | $23.5 | 232.9 | $21.0 | ||||||||||
Midwest | 902.0 | 32.2 | 805.8 | 32.4 | ||||||||||
South | 169.1 | 3.9 | — | — | ||||||||||
West | 777.5 | 20.0 | 87.8 | 6.2 | ||||||||||
Total Production and Operating Revenue | 2,110.8 | $79.6 | 1,126.5 | $59.6 |
Year Ended December 31, | ||||||||||
2018 | 2017 | |||||||||
Production and Operating Revenue | kWh | Revenue | kWh | Revenue | ||||||
Millions | ||||||||||
Wind Energy Facility | ||||||||||
Lake Benton | 220.1 | $11.9 | 241.8 | $12.3 | ||||||
Storm Lake II | 134.8 | 9.5 | 152.6 | 10.0 | ||||||
Condon | 99.6 | 8.1 | 90.7 | 7.5 | ||||||
Storm Lake I | 191.8 | 11.7 | 215.6 | 12.4 | ||||||
Chanarambie/Viking | 244.9 | 13.5 | 263.5 | 13.9 | ||||||
Armenia Mountain | 264.5 | 24.1 | 267.4 | 24.4 | ||||||
Total Wind Energy Facilities | 1,155.7 | 78.8 | 1,231.6 | 80.5 | ||||||
Sale of Wind Energy Facility (a) | — | 81.1 | — | — | ||||||
Total Production and Operating Revenue | 1,155.7 | $159.9 | 1,231.6 | $80.5 |
Year Ended December 31 | 2018 | 2017 | ||||
Millions | ||||||
Operating Revenue | $172.1 | $151.8 | ||||
Net Income Attributable to ALLETE (a) | $3.2 | $10.7 |
Year Ended December 31 | 2017 | 2016 | ||||
Millions | ||||||
Operating Revenue – Utility | $1,063.8 | $1,000.7 | ||||
Fuel, Purchased Power and Gas – Utility | 396.9 | 339.9 | ||||
Transmission Services – Utility | 71.2 | 65.2 | ||||
Operating and Maintenance | 227.3 | 227.5 | ||||
Depreciation and Amortization | 132.6 | 154.3 | ||||
Taxes Other than Income Taxes | 51.1 | 47.7 | ||||
Operating Income | 184.7 | 166.1 | ||||
Interest Expense | (57.0 | ) | (52.1 | ) | ||
Equity Earnings in ATC | 22.5 | 18.5 | ||||
Other Income | 5.4 | 8.9 | ||||
Income Before Income Taxes | 155.6 | 141.4 | ||||
Income Tax Expense | 27.2 | 5.9 | ||||
Net Income Attributable to ALLETE | $128.4 | $135.5 |
Kilowatt-hours Sold | 2017 | 2016 | Quantity Variance | % Variance | ||||
Millions | ||||||||
Regulated Utility | ||||||||
Retail and Municipal | ||||||||
Residential | 1,096 | 1,102 | (6 | ) | (0.5 | ) | ||
Commercial | 1,420 | 1,442 | (22 | ) | (1.5 | ) | ||
Industrial | 7,327 | 6,456 | 871 | 13.5 | ||||
Municipal | 799 | 816 | (17 | ) | (2.1 | ) | ||
Total Retail and Municipal | 10,642 | 9,816 | 826 | 8.4 | ||||
Other Power Suppliers | 4,039 | 4,316 | (277 | ) | (6.4 | ) | ||
Total Regulated Utility Kilowatt-hours Sold | 14,681 | 14,132 | 549 | 3.9 |
Year Ended December 31, | 2017 | 2016 | ||||
Millions | ||||||
Operating Revenue | $80.5 | $80.5 | ||||
Net Income Attributable to ALLETE (a) | $41.5 | $13.4 |
Year Ended December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Operating Revenue | — | $33.4 | ||||||
Net Loss Attributable to ALLETE | — | $(1.1) |
Year Ended December 31, | ||||||||||
2017 | 2016 | |||||||||
Production and Operating Revenue | kWh | Revenue | kWh | Revenue | ||||||
Millions | ||||||||||
Wind Energy Facility | ||||||||||
Lake Benton | 241.8 | $12.3 | 254.7 | $12.8 | ||||||
Storm Lake II | 152.6 | 10.0 | 154.8 | 10.1 | ||||||
Condon | 90.7 | 7.5 | 96.9 | 8.2 | ||||||
Storm Lake I | 215.6 | 12.4 | 222.3 | 11.6 | ||||||
Chanarambie/Viking | 263.5 | 13.9 | 278.8 | 13.4 | ||||||
Armenia Mountain | 267.4 | 24.4 | 268.2 | 24.4 | ||||||
Total Production and Operating Revenue | 1,231.6 | $80.5 | 1,275.7 | $80.5 |
Year Ended December 31 | 2017 | 2016 | ||||
Millions | ||||||
Operating Revenue | $151.8 | $137.5 | ||||
Net Income Attributable to ALLETE (a) | $10.7 | $1.5 |
Region | Wind Energy Facility | Capacity MW | PSA MW | PSA Expiration | ||||||||||
East | Armenia Mountain | 101 | 100% | 2024 | ||||||||||
Midwest | Chanarambie/Viking | 98 | ||||||||||||
PSA 1 (a) | 12% | 2023 | ||||||||||||
PSA 2 | 88% | 2023 | ||||||||||||
Lake Benton | 104 | 100% | 2028 | |||||||||||
Storm Lake I | 108 | 100% | 2027 | |||||||||||
Storm Lake II | 77 | |||||||||||||
PSA 1 | 90% | 2022 | ||||||||||||
PSA 2 | 10% | 2032 | ||||||||||||
Other | 17 | 100% | 2028 | |||||||||||
South | Diamond Spring | 303 | ||||||||||||
PSA 1 | 58% | 2035 | ||||||||||||
PSA 2 | 25% | 2032 | ||||||||||||
PSA 3 | 16% | 2035 | ||||||||||||
West | Condon | 50 | 100% | 2022 | ||||||||||
Glen Ullin | 106 | 100% | 2039 | |||||||||||
South Peak | 80 | 100% | 2035 |
Wind Energy Facility | Location | Capacity MW | PSA MW | PSA Expiration |
Armenia Mountain | Pennsylvania | 100.5 | 100% | 2024 |
Chanarambie/Viking | Minnesota | 97.5 | ||
PSA 1 (a) | 12% | 2023 | ||
PSA 2 | 88% | 2023 | ||
Condon | Oregon | 50 | 100% | 2022 |
Lake Benton | Minnesota | 104 | 100% | 2028 |
Lincoln Heights | Minnesota | 8.8 | 100% | 2028 |
Storm Lake I | Iowa | 108 | 100% | 2019 |
Storm Lake II | Iowa | 77 | ||
PSA 1 | 90% | 2019 | ||
PSA 2 | 10% | 2032 |
As of December 31 | 2020 | % | 2019 | % | 2018 | % | ||||||||||||||
Millions | ||||||||||||||||||||
ALLETE Equity | $2,294.6 | 50 | $2,231.9 | 56 | $2,155.8 | 59 | ||||||||||||||
Non-Controlling Interest in Subsidiaries | 505.6 | 11 | 103.7 | 3 | — | — | ||||||||||||||
Short-Term and Long-Term Debt (a) | 1,806.4 | 39 | 1,622.6 | 41 | 1,495.2 | 41 | ||||||||||||||
$4,606.6 | 100 | $3,958.2 | 100 | $3,651.0 | 100 |
As of December 31 | 2018 | % | 2017 | % | 2016 | % | ||||||
Millions | ||||||||||||
ALLETE Equity | $2,155.8 | 59 | $2,068.2 | 58 | $1,893.0 | 55 | ||||||
Long-Term Debt (Including Long-Term Debt Due Within One Year) | 1,495.2 | 41 | 1,513.3 | 42 | 1,569.1 | 45 | ||||||
$3,651.0 | 100 | $3,581.5 | 100 | $3,462.1 | 100 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | $92.5 | $79.0 | $110.1 | ||||||||
Cash Flows from (used for) | |||||||||||
Operating Activities | 299.8 | 246.9 | 431.3 | ||||||||
Investing Activities | (812.8) | (342.7) | (347.2) | ||||||||
Financing Activities | 485.7 | 109.3 | (115.2) | ||||||||
Change in Cash, Cash Equivalents and Restricted Cash | (27.3) | 13.5 | (31.1) | ||||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $65.2 | $92.5 | $79.0 |
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | $110.1 | $38.3 | $110.7 | ||||||
Cash Flows from (used for) | |||||||||
Operating Activities | 433.1 | 402.9 | 334.9 | ||||||
Investing Activities | (349.0 | ) | (229.0 | ) | (272.1 | ) | |||
Financing Activities | (115.2 | ) | (102.1 | ) | (135.2 | ) | |||
Change in Cash, Cash Equivalents and Restricted Cash | (31.1 | ) | 71.8 | (72.4 | ) | ||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $79.0 | $110.1 | $38.3 |
Payments Due by Period | |||||||||||||||
Less than | 1 to 3 | 4 to 5 | After | ||||||||||||
Contractual Obligations (a) | Total | 1 Year | Years | Years | 5 Years | ||||||||||
Millions | |||||||||||||||
Long-Term Debt | $2,266.3 | $118.7 | $326.1 | $275.9 | $1,545.6 | ||||||||||
Pension (b) | 467.8 | 47.9 | 94.7 | 94.1 | 231.1 | ||||||||||
Other Postretirement Benefit Plans (b) | 99.8 | 9.7 | 19.5 | 19.5 | 51.1 | ||||||||||
Operating Lease Obligations | 41.3 | 9.9 | 14.0 | 8.0 | 9.4 | ||||||||||
Easement Obligations | 161.0 | 4.8 | 9.8 | 10.1 | 136.3 | ||||||||||
PPA Obligations (c) | 2,210.2 | 107.3 | 260.7 | 291.5 | 1,550.7 | ||||||||||
Other Purchase Obligations | 69.6 | 52.4 | 17.1 | — | 0.1 | ||||||||||
Total Contractual Obligations | $5,316.0 | $350.7 | $741.9 | $699.1 | $3,524.3 |
Credit Ratings | S&P | Moody’s | ||||||
Issuer Credit Rating | ||||||||
Commercial Paper | A-2 | P-2 | ||||||
First Mortgage Bonds | (a) |
Capital Expenditures | 2021 | 2022 | 2023 | 2024 | 2025 | Total | |||||||||||||||||
Millions | |||||||||||||||||||||||
Regulated Operations | |||||||||||||||||||||||
Base and Other | $160 | $120 | $160 | $220 | $205 | $865 | |||||||||||||||||
Nemadji Trail Energy Center (a) | 15 | 50 | 150 | 115 | 15 | 345 | |||||||||||||||||
Regulated Operations Capital Expenditures | 175 | 170 | 310 | 335 | 220 | 1,210 | |||||||||||||||||
ALLETE Clean Energy (b) | 255 | 5 | 10 | 10 | 10 | 290 | |||||||||||||||||
Corporate and Other | 60 | 20 | 15 | 15 | 10 | 120 | |||||||||||||||||
Total Capital Expenditures | $490 | $195 | $335 | $360 | $240 | $1,620 |
Capital Expenditures | 2019 | 2020 | 2021 | 2022 | 2023 | Total | |||||||||||||
Millions | |||||||||||||||||||
Regulated Operations | |||||||||||||||||||
Base and Other | $120 | $160 | $215 | $170 | $105 | $770 | |||||||||||||
Transmission Cost Recovery (a) | 125 | 20 | — | — | — | 145 | |||||||||||||
Nemadji Trail Energy Center (b) | 5 | 15 | 50 | 135 | 130 | 335 | |||||||||||||
Regulated Operations Capital Expenditures | 250 | 195 | 265 | 305 | 235 | 1,250 | |||||||||||||
ALLETE Clean Energy (c) | 270 | 20 | 10 | 5 | 10 | 315 | |||||||||||||
Corporate and Other | 10 | 15 | 15 | 25 | 30 | 95 | |||||||||||||
Total Capital Expenditures | $530 | $230 | $290 | $335 | $275 | $1,660 |
Expected Maturity Date | ||||||||||||||||||||||||||
Interest Rate Sensitive Financial Instruments | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | Fair Value | ||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||||
Fixed Rate – Millions | $99.0 | $89.2 | $89.1 | $73.9 | $213.3 | $1,109.1 | $1,673.6 | $1,989.2 | ||||||||||||||||||
Average Interest Rate – % | 3.9 | 3.7 | 5.9 | 3.9 | 3.4 | 4.2 | 4.1 | |||||||||||||||||||
Variable Rate – Millions | $105.0 | — | — | — | $27.8 | — | $132.8 | $132.8 | ||||||||||||||||||
Average Interest Rate – % | 1.5 | — | — | — | 0.1 | — | 1.2 |
Expected Maturity Date | ||||||||||||||||||||||||
Interest Rate Sensitive Financial Instruments | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | Fair Value | ||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||
Fixed Rate – Millions | $56.7 | $89.5 | $98.3 | $88.5 | $88.5 | $1,019.5 | $1,441.0 | $1,480.4 | ||||||||||||||||
Average Interest Rate – % | 7.6 | 4.2 | 3.8 | 3.7 | 5.9 | 4.3 | 5.0 | |||||||||||||||||
Variable Rate – Millions | $1.2 | $24.2 | $0.2 | $0.8 | — | $27.8 | $54.2 | $54.2 | ||||||||||||||||
Average Interest Rate – % | 5.2 | 2.6 | 5.2 | 5.2 | — | 1.8 | 2.3 |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights (a) | Weighted-Average Exercise Price of Outstanding Options, Warrants, and Rights (b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (c) | ||||||||
Equity Compensation Plans Approved by Security Holders | 122,431 | — | 820,161 | ||||||||
Equity Compensation Plans Not Approved by Security Holders | — | — | — | ||||||||
Total | 122,431 | — | 820,161 |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights (a) | Weighted-Average Exercise Price of Outstanding Options, Warrants, and Rights (b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (c) | |||
Equity Compensation Plans Approved by Security Holders | 230,424 | — | 892,004 | |||
Equity Compensation Plans Not Approved by Security Holders | — | — | — | |||
Total | 230,424 | — | 892,004 |
(a) | Certain Documents Filed as Part of this Form 10-K. | |||||||||||||
(1) | Financial Statements | Page | ||||||||||||
ALLETE | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
(2) | Financial Statement Schedules | |||||||||||||
All other schedules have been omitted either because the information is not required to be reported by ALLETE or because the information is included in the Consolidated Financial Statements or the notes. | ||||||||||||||
(3) | Exhibits including those incorporated by reference. |
Exhibit Number | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
*4(a)1 | — | Mortgage and Deed of Trust, dated as of September 1, 1945, between Minnesota Power & Light Company (now ALLETE) and The Bank of New York Mellon (formerly Irving Trust Company) and Andres Serrano (successor to Richard H. West), Trustees (filed as Exhibit 7(c), File No. 2-5865). | |||||||||||||||
*4(a)2 | — | Supplemental Indentures to ALLETE’s Mortgage and Deed of Trust: | |||||||||||||||
Number | Dated as of | Reference File | Exhibit | ||||||||||||||
First | March 1, 1949 | 2-7826 | 7(b) | ||||||||||||||
Second | July 1, 1951 | 2-9036 | 7(c) | ||||||||||||||
Third | March 1, 1957 | 2-13075 | 2(c) | ||||||||||||||
Fourth | January 1, 1968 | 2-27794 | 2(c) | ||||||||||||||
Fifth | April 1, 1971 | 2-39537 | 2(c) | ||||||||||||||
Sixth | August 1, 1975 | 2-54116 | 2(c) | ||||||||||||||
Seventh | September 1, 1976 | 2-57014 | 2(c) | ||||||||||||||
Eighth | September 1, 1977 | 2-59690 | 2(c) | ||||||||||||||
Ninth | April 1, 1978 | 2-60866 | 2(c) | ||||||||||||||
Tenth | August 1, 1978 | 2-62852 | 2(d)2 | ||||||||||||||
Eleventh | December 1, 1982 | 2-56649 | 4(a)3 | ||||||||||||||
Twelfth | April 1, 1987 | 33-30224 | 4(a)3 | ||||||||||||||
Thirteenth | March 1, 1992 | 33-47438 | 4(b) | ||||||||||||||
Fourteenth | June 1, 1992 | 33-55240 | 4(b) | ||||||||||||||
Fifteenth | July 1, 1992 | 33-55240 | 4(c) | ||||||||||||||
Sixteenth | July 1, 1992 | 33-55240 | 4(d) | ||||||||||||||
Seventeenth | February 1, 1993 | 33-50143 | 4(b) | ||||||||||||||
Eighteenth | July 1, 1993 | 33-50143 | 4(c) | ||||||||||||||
Exhibit Number | |||||||||||||||||
*4(b)1 | — | Mortgage and Deed of Trust, dated as of March 1, 1943, between Superior Water, Light and Power Company and Chemical Bank & Trust Company and Howard B. Smith, as Trustees, both succeeded by U.S. Bank National Association, as Trustee (filed as Exhibit 7(c), File No. 2-8668). | |||||||||||||||
*4(b)2 | — | Supplemental Indentures to Superior Water, Light and Power Company’s Mortgage and Deed of Trust: | |||||||||||||||
Number | Dated as of | Reference File | Exhibit | ||||||||||||||
First | March 1, 1951 | 2-59690 | 2(d)(1) | ||||||||||||||
Second | March 1, 1962 | 2-27794 | 2(d)1 | ||||||||||||||
Third | July 1, 1976 | 2-57478 | 2(e)1 | ||||||||||||||
Fourth | March 1, 1985 | 2-78641 | 4(b) | ||||||||||||||
Fifth | December 1, 1992 | 1-3548 (1992 Form 10-K) | 4(b)1 | ||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— |
Exhibit Number | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— |
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— |
Exhibit Number | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— |
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— |
Exhibit Number | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
— | ALLETE News Release dated February | ||||||||||||||||
101.INS | — | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||
101.SCH | — | XBRL Schema | |||||||||||||||
101.CAL | — | XBRL Calculation | |||||||||||||||
101.DEF | — | XBRL Definition | |||||||||||||||
101.LAB | — | XBRL Label | |||||||||||||||
101.PRE | — | XBRL Presentation | |||||||||||||||
104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Incorporated herein by reference as indicated. | ||||
+ | Management contract or compensatory plan or arrangement pursuant to Item 15(b). |
ALLETE, Inc. | |||||||||||
Dated: | February | By | |||||||||
Signature | Title | Date | ||||||||||||
/s/ Bethany M. Owen | President, Chief Executive Officer and Director | February 17, 2021 | ||||||||||||
Bethany M. Owen | (Principal Executive Officer) | |||||||||||||
/s/ Robert J. Adams | Senior Vice President and Chief Financial Officer | February 17, 2021 | ||||||||||||
Robert J. Adams | (Principal Financial Officer) | |||||||||||||
/s/ Steven W. Morris | Vice President, Controller and Chief Accounting Officer | February 17, 2021 | ||||||||||||
Steven W. Morris | (Principal Accounting Officer) |
Signature | Title | Date | ||||||||||||
/s/ Kathryn W. Dindo | Director | February 17, 2021 | ||||||||||||
Kathryn W. Dindo | ||||||||||||||
/s/ George G. Goldfarb | Director | February 17, 2021 | ||||||||||||
George G. Goldfarb | ||||||||||||||
/s/ Alan R. Hodnik | Executive Chairman and Director | February 17, 2021 | ||||||||||||
Alan R. Hodnik | ||||||||||||||
James J. Hoolihan | ||||||||||||||
February 17, 2021 | ||||||||||||||
Heidi E. Jimmerson | ||||||||||||||
/s/ Madeleine W. Ludlow | Director | February | ||||||||||||
Madeleine W. Ludlow | ||||||||||||||
/s/ Susan K. Nestegard | Director | February | ||||||||||||
Susan K. Nestegard | ||||||||||||||
/s/ Douglas C. Neve | Director | February | ||||||||||||
Douglas C. Neve | ||||||||||||||
/s/ | Director | February | ||||||||||||
/s/ Robert P. Powers | Director | February | ||||||||||||
Robert P. Powers | ||||||||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $44.3 | $69.3 | ||||||
Accounts Receivable (Less Allowance of $2.5 and $0.9) | 111.9 | 96.4 | ||||||
Inventories – Net | 74.2 | 72.8 | ||||||
Prepayments and Other | 24.5 | 31.0 | ||||||
Total Current Assets | 254.9 | 269.5 | ||||||
Property, Plant and Equipment – Net | 4,840.8 | 4,377.0 | ||||||
Regulatory Assets | 480.9 | 420.5 | ||||||
Equity Investments | 301.2 | 197.6 | ||||||
Other Non-Current Assets | 206.8 | 218.2 | ||||||
Total Assets | $6,084.6 | $5,482.8 | ||||||
Liabilities and Equity | ||||||||
Liabilities | ||||||||
Current Liabilities | ||||||||
Accounts Payable | $110.0 | $165.2 | ||||||
Accrued Taxes | 59.4 | 50.8 | ||||||
Accrued Interest | 19.8 | 18.1 | ||||||
Long-Term Debt Due Within One Year | 203.7 | 212.9 | ||||||
Other | 66.7 | 60.4 | ||||||
Total Current Liabilities | 459.6 | 507.4 | ||||||
Long-Term Debt | 1,593.2 | 1,400.9 | ||||||
Deferred Income Taxes | 195.7 | 212.8 | ||||||
Regulatory Liabilities | 524.8 | 560.3 | ||||||
Defined Benefit Pension and Other Postretirement Benefit Plans | 225.8 | 172.8 | ||||||
Other Non-Current Liabilities | 285.3 | 293.0 | ||||||
Total Liabilities | 3,284.4 | 3,147.2 | ||||||
Commitments, Guarantees and Contingencies (Note 8) | 0 | 0 | ||||||
Equity | ||||||||
ALLETE Equity | ||||||||
Common Stock Without Par Value, 80.0 Shares Authorized, 52.1 and 51.7 Shares Issued and Outstanding | 1,460.9 | 1,436.7 | ||||||
Accumulated Other Comprehensive Loss | (31.1) | (23.6) | ||||||
Retained Earnings | 864.8 | 818.8 | ||||||
Total ALLETE Equity | 2,294.6 | 2,231.9 | ||||||
Non-Controlling Interest in Subsidiaries | 505.6 | 103.7 | ||||||
Total Equity | 2,800.2 | 2,335.6 | ||||||
Total Liabilities and Equity | $6,084.6 | $5,482.8 |
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
Assets | ||||||
Current Assets | ||||||
Cash and Cash Equivalents | $69.1 | $98.9 | ||||
Accounts Receivable (Less Allowance of $1.7 and $2.1) | 144.4 | 135.1 | ||||
Inventories – Net | 86.7 | 95.9 | ||||
Prepayments and Other | 34.1 | 37.6 | ||||
Total Current Assets | 334.3 | 367.5 | ||||
Property, Plant and Equipment – Net | 3,904.4 | 3,822.4 | ||||
Regulatory Assets | 389.5 | 384.7 | ||||
Equity Investments | 161.1 | 118.7 | ||||
Other Investments | 49.1 | 53.1 | ||||
Goodwill and Intangible Assets – Net | 223.3 | 225.9 | ||||
Other Non-Current Assets | 103.3 | 107.7 | ||||
Total Assets | $5,165.0 | $5,080.0 | ||||
Liabilities and Shareholders’ Equity | ||||||
Liabilities | ||||||
Current Liabilities | ||||||
Accounts Payable | $149.8 | $136.3 | ||||
Accrued Taxes | 51.4 | 50.0 | ||||
Accrued Interest | 17.9 | 17.6 | ||||
Long-Term Debt Due Within One Year | 57.5 | 64.1 | ||||
Other | 128.5 | 83.2 | ||||
Total Current Liabilities | 405.1 | 351.2 | ||||
Long-Term Debt | 1,428.5 | 1,439.2 | ||||
Deferred Income Taxes | 223.6 | 230.5 | ||||
Regulatory Liabilities | 512.1 | 532.0 | ||||
Defined Benefit Pension and Other Postretirement Benefit Plans | 177.3 | 191.8 | ||||
Other Non-Current Liabilities | 262.6 | 267.1 | ||||
Total Liabilities | 3,009.2 | 3,011.8 | ||||
Commitments, Guarantees and Contingencies (Note 11) | ||||||
Shareholders’ Equity | ||||||
Common Stock Without Par Value, 80.0 Shares Authorized, 51.5 and 51.1 Shares Issued and Outstanding | 1,428.5 | 1,401.4 | ||||
Accumulated Other Comprehensive Loss | (27.3 | ) | (22.6 | ) | ||
Retained Earnings | 754.6 | 689.4 | ||||
Total Shareholders’ Equity | 2,155.8 | 2,068.2 | ||||
Total Liabilities and Shareholders’ Equity | $5,165.0 | $5,080.0 |
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions Except Per Share Amounts | |||||||||
Operating Revenue | |||||||||
Contracts with Customers – Utility | $1,059.5 | $1,063.8 | $1,000.7 | ||||||
Contracts with Customers – Non-utility | 415.5 | 331.9 | 316.7 | ||||||
Other – Non-utility | 23.6 | 23.6 | 22.3 | ||||||
Total Operating Revenue | 1,498.6 | 1,419.3 | 1,339.7 | ||||||
Operating Expenses | |||||||||
Fuel, Purchased Power and Gas – Utility | 407.5 | 396.9 | 339.9 | ||||||
Transmission Services – Utility | 69.9 | 71.2 | 65.2 | ||||||
Cost of Sales – Non-utility | 218.0 | 147.5 | 137.4 | ||||||
Operating and Maintenance | 340.5 | 344.1 | 340.9 | ||||||
Depreciation and Amortization | 205.6 | 177.5 | 195.8 | ||||||
Taxes Other than Income Taxes | 57.9 | 56.9 | 53.8 | ||||||
Other | (2.0 | ) | (0.7 | ) | (10.3 | ) | |||
Total Operating Expenses | 1,297.4 | 1,193.4 | 1,122.7 | ||||||
Operating Income | 201.2 | 225.9 | 217.0 | ||||||
Other Income (Expense) | |||||||||
Interest Expense | (67.9 | ) | (67.8 | ) | (70.3 | ) | |||
Equity Earnings in ATC | 17.5 | 22.5 | 18.5 | ||||||
Other | 7.8 | 6.3 | 10.4 | ||||||
Total Other Expense | (42.6 | ) | (39.0 | ) | (41.4 | ) | |||
Income Before Non-Controlling Interest and Income Taxes | 158.6 | 186.9 | 175.6 | ||||||
Income Tax Expense (Benefit) | (15.5 | ) | 14.7 | 19.8 | |||||
Net Income | 174.1 | 172.2 | 155.8 | ||||||
Less: Non-Controlling Interest in Subsidiaries | — | — | 0.5 | ||||||
Net Income Attributable to ALLETE | $174.1 | $172.2 | $155.3 | ||||||
Average Shares of Common Stock | |||||||||
Basic | 51.3 | 50.8 | 49.3 | ||||||
Diluted | 51.5 | 51.0 | 49.5 | ||||||
Basic Earnings Per Share of Common Stock | $3.39 | $3.39 | $3.15 | ||||||
Diluted Earnings Per Share of Common Stock | $3.38 | $3.38 | $3.14 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions Except Per Share Amounts | |||||||||||
Operating Revenue | |||||||||||
Contracts with Customers – Utility | $987.3 | $1,042.4 | $1,059.5 | ||||||||
Contracts with Customers – Non-utility | 170.5 | 186.5 | 415.5 | ||||||||
Other – Non-utility | 11.3 | 11.6 | 23.6 | ||||||||
Total Operating Revenue | 1,169.1 | 1,240.5 | 1,498.6 | ||||||||
Operating Expenses | |||||||||||
Fuel, Purchased Power and Gas – Utility | 358.6 | 390.7 | 407.5 | ||||||||
Transmission Services – Utility | 67.0 | 69.8 | 69.9 | ||||||||
Cost of Sales – Non-utility | 66.7 | 80.6 | 218.0 | ||||||||
Operating and Maintenance | 252.0 | 264.3 | 340.5 | ||||||||
Depreciation and Amortization | 217.8 | 202.0 | 205.6 | ||||||||
Taxes Other than Income Taxes | 56.1 | 53.3 | 57.9 | ||||||||
Other | 0 | 0 | (2.0) | ||||||||
Total Operating Expenses | 1,018.2 | 1,060.7 | 1,297.4 | ||||||||
Operating Income | 150.9 | 179.8 | 201.2 | ||||||||
Other Income (Expense) | |||||||||||
Interest Expense | (65.6) | (64.9) | (67.9) | ||||||||
Equity Earnings | 22.1 | 21.7 | 17.5 | ||||||||
Gain on Sale of U.S. Water Services | 0 | 23.6 | 0 | ||||||||
Other | 14.7 | 18.7 | 7.8 | ||||||||
Total Other Expense | (28.8) | (0.9) | (42.6) | ||||||||
Income Before Non-Controlling Interest and Income Taxes | 122.1 | 178.9 | 158.6 | ||||||||
Income Tax Benefit | (39.5) | (6.6) | (15.5) | ||||||||
Net Income | 161.6 | 185.5 | 174.1 | ||||||||
Net Loss Attributable to Non-Controlling Interest | (12.6) | (0.1) | 0 | ||||||||
Net Income Attributable to ALLETE | $174.2 | $185.6 | $174.1 | ||||||||
Average Shares of Common Stock | |||||||||||
Basic | 51.9 | 51.6 | 51.3 | ||||||||
Diluted | 51.9 | 51.7 | 51.5 | ||||||||
Basic Earnings Per Share of Common Stock | $3.36 | $3.59 | $3.39 | ||||||||
Diluted Earnings Per Share of Common Stock | $3.35 | $3.59 | $3.38 | ||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Net Income | $174.1 | $172.2 | $155.8 | ||||||
Other Comprehensive Income (Loss) | |||||||||
Unrealized Gain (Loss) on Securities | |||||||||
Net of Income Tax Expense (Benefit) of $–, $0.7 and $(0.2) | (0.1 | ) | 0.9 | (0.2 | ) | ||||
Defined Benefit Pension and Other Postretirement Benefit Plans | |||||||||
Net of Income Tax Expense (Benefit) of $0.3, $2.2 and $(2.4) | 1.0 | 4.7 | (3.5 | ) | |||||
Total Other Comprehensive Income (Loss) | 0.9 | 5.6 | (3.7 | ) | |||||
Total Comprehensive Income | 175.0 | 177.8 | 152.1 | ||||||
Less: Non-Controlling Interest in Subsidiaries | — | — | 0.5 | ||||||
Total Comprehensive Income Attributable to ALLETE | $175.0 | $177.8 | $151.6 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Net Income | $161.6 | $185.5 | $174.1 | ||||||||
Other Comprehensive Income (Loss) | |||||||||||
Unrealized Gain (Loss) on Securities | |||||||||||
Net of Income Tax Expense of $0.1, $0.1 and $– | 0.1 | 0.2 | (0.1) | ||||||||
Defined Benefit Pension and Other Postretirement Benefit Plans | |||||||||||
Net of Income Tax (Benefit) Expense of $(3.1), $1.4 and $0.3 | (7.6) | 3.5 | 1.0 | ||||||||
Total Other Comprehensive Income (Loss) | (7.5) | 3.7 | 0.9 | ||||||||
Total Comprehensive Income | 154.1 | 189.2 | 175.0 | ||||||||
Net Loss Attributable to Non-Controlling Interest | (12.6) | (0.1) | 0 | ||||||||
Total Comprehensive Income Attributable to ALLETE | $166.7 | $189.3 | $175.0 |
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Operating Activities | |||||||||
Net Income | $174.1 | $172.2 | $155.8 | ||||||
AFUDC – Equity | (1.2 | ) | (1.2 | ) | (2.1 | ) | |||
Income from Equity Investments – Net of Dividends | (2.3 | ) | (3.2 | ) | (5.7 | ) | |||
Impairment of Goodwill | — | — | 3.3 | ||||||
Change in Fair Value of Contingent Consideration | (2.0 | ) | (0.7 | ) | (13.6 | ) | |||
Deferred Fuel Adjustment Clause Charge | — | 19.5 | — | ||||||
Loss (Gain) on Sales of Investments and Property, Plant and Equipment | 1.0 | 0.4 | (6.0 | ) | |||||
Depreciation Expense | 200.1 | 171.9 | 190.6 | ||||||
Amortization of PSAs | (23.6 | ) | (23.6 | ) | (22.3 | ) | |||
Amortization of Other Intangible Assets and Other Assets | 10.4 | 10.2 | 10.3 | ||||||
Deferred Income Tax Expense (Benefit) | (15.8 | ) | 14.4 | 19.4 | |||||
Share-Based and ESOP Compensation Expense | 6.8 | 6.6 | 5.1 | ||||||
Defined Benefit Pension and Other Postretirement Benefit Expense | 8.6 | 10.1 | 4.6 | ||||||
Bad Debt Expense | 1.1 | 0.8 | 4.1 | ||||||
Provision for Interim Rate Refund | 16.3 | 32.3 | — | ||||||
Provision for Tax Reform Refund | 10.7 | — | — | ||||||
Changes in Operating Assets and Liabilities | |||||||||
Accounts Receivable | (10.7 | ) | (8.0 | ) | (4.7 | ) | |||
Inventories | 55.5 | 11.9 | 13.3 | ||||||
Prepayments and Other | (4.0 | ) | (5.3 | ) | (6.9 | ) | |||
Accounts Payable | 13.6 | (7.5 | ) | 6.5 | |||||
Other Current Liabilities | 6.7 | 1.8 | (10.9 | ) | |||||
Cash Contributions to Defined Benefit Pension Plans | (15.0 | ) | (1.7 | ) | (6.3 | ) | |||
Changes in Regulatory and Other Non-Current Assets | 6.7 | 33.7 | (10.7 | ) | |||||
Changes in Regulatory and Other Non-Current Liabilities | (3.9 | ) | (31.7 | ) | 11.1 | ||||
Cash from Operating Activities | 433.1 | 402.9 | 334.9 | ||||||
Investing Activities | |||||||||
Proceeds from Sale of Available-for-sale Securities | 10.2 | 10.1 | 9.0 | ||||||
Payments for Purchase of Available-for-sale Securities | (13.3 | ) | (8.6 | ) | (9.4 | ) | |||
Acquisitions of Subsidiaries – Net of Cash and Restricted Cash Acquired | — | (18.5 | ) | (5.8 | ) | ||||
Equity Investments | (39.2 | ) | (7.8 | ) | (5.4 | ) | |||
Additions to Property, Plant and Equipment | (312.4 | ) | (208.5 | ) | (265.6 | ) | |||
Other Investing Activities | 5.7 | 4.3 | 5.1 | ||||||
Cash for Investing Activities | (349.0 | ) | (229.0 | ) | (272.1 | ) | |||
Financing Activities | |||||||||
Proceeds from Issuance of Common Stock | 20.3 | 86.0 | 30.9 | ||||||
Proceeds from Issuance of Long-Term Debt | 75.6 | 131.5 | 4.8 | ||||||
Repayments of Long-Term Debt | (95.5 | ) | (189.6 | ) | (57.7 | ) | |||
Acquisition of Non-Controlling Interest | — | — | (8.0 | ) | |||||
Acquisition-Related Contingent Consideration Payments | — | (19.7 | ) | (0.9 | ) | ||||
Dividends on Common Stock | (115.0 | ) | (108.7 | ) | (102.7 | ) | |||
Other Financing Activities | (0.6 | ) | (1.6 | ) | (1.6 | ) | |||
Cash for Financing Activities | (115.2 | ) | (102.1 | ) | (135.2 | ) | |||
Change in Cash, Cash Equivalents and Restricted Cash | (31.1 | ) | 71.8 | (72.4 | ) | ||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 110.1 | 38.3 | 110.7 | ||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $79.0 | $110.1 | $38.3 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Operating Activities | |||||||||||
Net Income | $161.6 | $185.5 | $174.1 | ||||||||
AFUDC – Equity | (1.9) | (2.3) | (1.2) | ||||||||
Income from Equity Investments – Net of Dividends | (3.2) | (5.6) | (2.3) | ||||||||
Change in Fair Value of Contingent Consideration | 0 | 0 | (2.0) | ||||||||
Realized and Unrealized (Gain) / Loss on Investments and Property, Plant and Equipment | (1.3) | (1.6) | 2.7 | ||||||||
Depreciation Expense | 217.7 | 200.6 | 200.1 | ||||||||
Amortization of PSAs | (11.3) | (11.6) | (23.6) | ||||||||
Amortization of Other Intangible Assets and Other Assets | 10.4 | 11.7 | 9.6 | ||||||||
Deferred Income Tax Benefit | (39.5) | (6.7) | (15.8) | ||||||||
Share-Based and ESOP Compensation Expense | 6.1 | 6.3 | 6.8 | ||||||||
Defined Benefit Pension and Other Postretirement Benefit Expense | 0.1 | 1.2 | 8.6 | ||||||||
Bad Debt Expense | 2.7 | (0.1) | 1.1 | ||||||||
Provision (Payments) for Interim Rate Refund | 0 | (40.0) | 16.3 | ||||||||
Provision (Payments) for Tax Reform Refund | (0.2) | (10.4) | 10.7 | ||||||||
Gain on Sale of U.S. Water Services | 0 | (23.6) | 0 | ||||||||
Changes in Operating Assets and Liabilities | |||||||||||
Accounts Receivable | (18.2) | 22.6 | (10.7) | ||||||||
Inventories | (1.4) | (4.1) | 55.5 | ||||||||
Prepayments and Other | 0.9 | 0.3 | (4.0) | ||||||||
Accounts Payable | 11.8 | (8.8) | 13.6 | ||||||||
Other Current Liabilities | 16.7 | (13.7) | 6.7 | ||||||||
Cash Contributions to Defined Benefit Pension Plans | (10.7) | (10.4) | (15.0) | ||||||||
Changes in Regulatory and Other Non-Current Assets | (31.0) | (25.2) | 5.0 | ||||||||
Changes in Regulatory and Other Non-Current Liabilities | (9.5) | (17.2) | (4.9) | ||||||||
Cash from Operating Activities | 299.8 | 246.9 | 431.3 | ||||||||
Investing Activities | |||||||||||
Proceeds from Sale of Available-for-sale Securities | 12.8 | 12.1 | 10.2 | ||||||||
Payments for Purchase of Available-for-sale Securities | (8.7) | (12.2) | (13.3) | ||||||||
Payments for Equity Investments | (99.1) | (37.9) | (39.2) | ||||||||
Return of Capital from Equity Investments | 0 | 8.3 | 0 | ||||||||
Additions to Property, Plant and Equipment | (717.8) | (597.1) | (312.4) | ||||||||
Proceeds from Sale of U.S. Water Services – Net of Transaction Costs and Cash Retained | 0 | 268.6 | 0 | ||||||||
Other Investing Activities | 0 | 15.5 | 7.5 | ||||||||
Cash for Investing Activities | (812.8) | (342.7) | (347.2) | ||||||||
Financing Activities | |||||||||||
Proceeds from Issuance of Common Stock | 18.1 | 1.9 | 20.3 | ||||||||
Proceeds from Issuance of Long-Term Debt | 672.4 | 201.9 | 75.6 | ||||||||
Repayments of Long-Term Debt | (488.6) | (72.2) | (95.5) | ||||||||
Proceeds from Non-Controlling Interest in Subsidiaries – Net of Issuance Costs | 414.5 | 103.8 | 0 | ||||||||
Acquisition-Related Contingent Consideration Payments | 0 | (3.8) | 0 | ||||||||
Dividends on Common Stock | (128.2) | (121.4) | (115.0) | ||||||||
Other Financing Activities | (2.5) | (0.9) | (0.6) | ||||||||
Cash (for) from Financing Activities | 485.7 | 109.3 | (115.2) | ||||||||
Change in Cash, Cash Equivalents and Restricted Cash | (27.3) | 13.5 | (31.1) | ||||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 92.5 | 79.0 | 110.1 | ||||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $65.2 | $92.5 | $79.0 |
Total Equity | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock | Non-Controlling Interest in Subsidiaries | ||||||||||
Millions | ||||||||||||||
Balance as of December 31, 2015 | $1,822.4 | $573.3 | $(24.5) | $1,271.4 | $2.2 | |||||||||
Comprehensive Income | ||||||||||||||
Net Income | 155.8 | 155.3 | — | — | 0.5 | |||||||||
Other Comprehensive Income – Net of Income Taxes | ||||||||||||||
Unrealized Loss on Securities | (0.2 | ) | — | (0.2 | ) | — | — | |||||||
Defined Benefit Pension and Other Postretirement Plans | (3.5 | ) | — | (3.5 | ) | — | — | |||||||
Total Comprehensive Income | 152.1 | |||||||||||||
Common Stock Issued | 35.9 | — | — | 35.9 | — | |||||||||
Common Stock Retired | (8.0 | ) | (8.0 | ) | ||||||||||
Dividends Declared | (102.7 | ) | (102.7 | ) | — | — | — | |||||||
Acquisition of Non-Controlling Interest | (6.7 | ) | — | — | (4.0 | ) | (2.7 | ) | ||||||
Balance as of December 31, 2016 | 1,893.0 | 625.9 | (28.2 | ) | 1,295.3 | — | ||||||||
Comprehensive Income | ||||||||||||||
Net Income | 172.2 | 172.2 | — | — | — | |||||||||
Other Comprehensive Income – Net of Income Taxes | ||||||||||||||
Unrealized Gain on Securities | 0.9 | — | 0.9 | — | — | |||||||||
Defined Benefit Pension and Other Postretirement Plans | 4.7 | — | 4.7 | — | — | |||||||||
Total Comprehensive Income | 177.8 | |||||||||||||
Common Stock Issued | 106.1 | — | — | 106.1 | — | |||||||||
Dividends Declared | (108.7 | ) | (108.7 | ) | — | — | — | |||||||
Balance as of December 31, 2017 | 2,068.2 | 689.4 | (22.6 | ) | 1,401.4 | — | ||||||||
Adjustments to Opening Balance – Net of Income Taxes (a) | 0.5 | 6.1 | (5.6 | ) | — | — | ||||||||
Balance as of January 1, 2018 | 2,068.7 | 695.5 | (28.2 | ) | 1,401.4 | — | ||||||||
Comprehensive Income | ||||||||||||||
Net Income | 174.1 | 174.1 | — | — | — | |||||||||
Other Comprehensive Income – Net of Income Taxes | ||||||||||||||
Unrealized Loss on Debt Securities | (0.1 | ) | — | (0.1 | ) | — | — | |||||||
Defined Benefit Pension and Other Postretirement Plans | 1.0 | — | 1.0 | — | — | |||||||||
Total Comprehensive Income | 175.0 | |||||||||||||
Common Stock Issued | 27.1 | — | — | 27.1 | — | |||||||||
Dividends Declared | (115.0 | ) | (115.0 | ) | — | — | — | |||||||
Balance as of December 31, 2018 | $2,155.8 | $754.6 | $(27.3) | $1,428.5 | — |
2020 | 2019 | 2018 | |||||||||
Millions Except Per Share Amounts | |||||||||||
Common Stock | |||||||||||
Balance, Beginning of Period | $1,436.7 | $1,428.5 | $1,401.4 | ||||||||
Common Stock Issued | 24.2 | 8.2 | 27.1 | ||||||||
Balance, End of Period | 1,460.9 | 1,436.7 | 1,428.5 | ||||||||
Accumulated Other Comprehensive Loss | |||||||||||
Balance, Beginning of Period | (23.6) | (27.3) | (22.6) | ||||||||
Adjustments to Opening Balance – Net of Income Taxes (a) | 0 | 0 | (5.6) | ||||||||
Other Comprehensive Income – Net of Income Taxes | |||||||||||
Unrealized Gain (Loss) on Debt Securities | 0.1 | 0.2 | (0.1) | ||||||||
Defined Benefit Pension and Other Postretirement Plans | (7.6) | 3.5 | 1.0 | ||||||||
Balance, End of Period | (31.1) | (23.6) | (27.3) | ||||||||
Retained Earnings | |||||||||||
Balance, Beginning of Period | 818.8 | 754.6 | 689.4 | ||||||||
Adjustments to Opening Balance – Net of Income Taxes (a) | 0 | 0 | 6.1 | ||||||||
Net Income Attributable to ALLETE | 174.2 | 185.6 | 174.1 | ||||||||
Common Stock Dividends | (128.2) | (121.4) | (115.0) | ||||||||
Balance, End of Period | 864.8 | 818.8 | 754.6 | ||||||||
Non-Controlling Interest in Subsidiaries | |||||||||||
Balance, Beginning of Period | 103.7 | 0 | 0 | ||||||||
Proceeds from Non-Controlling Interest in Subsidiaries – Net of Issuance Costs | 414.5 | 103.8 | 0 | ||||||||
Net Loss Attributable to Non-Controlling Interest | (12.6) | (0.1) | 0 | ||||||||
Balance, End of Period | 505.6 | 103.7 | 0 | ||||||||
Total Equity | $2,800.2 | $2,335.6 | $2,155.8 | ||||||||
Dividends Per share of Common Stock | $2.47 | $2.35 | $2.24 |
Cash, Cash Equivalents and Restricted Cash | |||||||||||||||||
As of December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Millions | |||||||||||||||||
Cash and Cash Equivalents | $44.3 | $69.3 | $69.1 | ||||||||||||||
Restricted Cash included in Prepayments and Other | 0.8 | 2.8 | 1.3 | ||||||||||||||
Restricted Cash included in Other Non-Current Assets | 20.1 | 20.4 | 8.6 | ||||||||||||||
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows | $65.2 | $92.5 | $79.0 |
Cash, Cash Equivalents and Restricted Cash | December 31, 2018 | December 31, 2017 | December 31, 2016 | ||||||||
Millions | |||||||||||
Cash and Cash Equivalents | $69.1 | $98.9 | $27.5 | ||||||||
Restricted Cash included in Prepayments and Other | 1.3 | 2.6 | 2.2 | ||||||||
Restricted Cash included in Other Non-Current Assets | 8.6 | 8.6 | 8.6 | ||||||||
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows | $79.0 | $110.1 | $38.3 |
Consolidated Statement of Cash Flows | ||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | |||||||||||
Millions | ||||||||||||||
Cash Paid During the Period for Interest – Net of Amounts Capitalized | $62.0 | $63.5 | $66.0 | |||||||||||
Recognition of Right-of-use Assets and Lease Liabilities (a) | 0 | $28.7 | 0 | |||||||||||
Noncash Investing and Financing Activities | ||||||||||||||
Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment | $(67.0) | $33.9 | $(0.1) | |||||||||||
Reclassification of Property, Plant and Equipment to Inventory (b) | 0 | 0 | $46.3 | |||||||||||
Capitalized Asset Retirement Costs | $4.1 | $20.7 | $14.2 | |||||||||||
AFUDC–Equity | $1.9 | $2.3 | $1.2 | |||||||||||
Consolidated Statement of Cash Flows | |||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Cash Paid During the Period for Interest – Net of Amounts Capitalized | $66.0 | $64.5 | $68.2 | ||||||
Remeasurement of Deferred Income Taxes Resulting from the TCJA | |||||||||
Increase in Regulatory Assets | — | $80.9 | — | ||||||
Decrease in Investment in ATC | — | $(27.9) | — | ||||||
Decrease in Deferred Income Taxes | — | $(353.6) | — | ||||||
Increase in Regulatory Liabilities | — | $393.6 | — | ||||||
Noncash Investing and Financing Activities | |||||||||
Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment | $(0.1) | $67.2 | $(22.0) | ||||||
Reclassification of Property, Plant and Equipment to Inventory (a) | $46.3 | — | — | ||||||
Capitalized Asset Retirement Costs | $14.2 | $(15.6) | $3.7 | ||||||
Camp Ripley Solar Financing | — | — | $15.0 | ||||||
AFUDC–Equity | $1.2 | $1.2 | $2.1 | ||||||
ALLETE Common Stock Contributed to Pension Plans | — | $13.5 | — | ||||||
ALLETE Common Stock Received for Land Inventory | — | — | $8.0 | ||||||
Long-Term Finance Receivable for Land Inventory | — | — | $12.0 |
Accounts Receivable | |||||||||||
As of December 31 | 2020 | 2019 | |||||||||
Millions | |||||||||||
Trade Accounts Receivable | |||||||||||
Billed | $93.5 | $77.2 | |||||||||
Unbilled | 20.9 | 20.1 | |||||||||
Less: Allowance for Doubtful Accounts | 2.5 | 0.9 | |||||||||
Total Accounts Receivable | $111.9 | $96.4 |
Accounts Receivable | |||||||
As of December 31 | 2018 | 2017 | |||||
Millions | |||||||
Trade Accounts Receivable | |||||||
Billed | $121.7 | $112.6 | |||||
Unbilled | 24.4 | 24.6 | |||||
Less: Allowance for Doubtful Accounts | 1.7 | 2.1 | |||||
Total Accounts Receivable | $144.4 | $135.1 |
Inventories – Net | |||||||||||
As of December 31 | 2020 | 2019 | |||||||||
Millions | |||||||||||
Fuel (a) | $23.1 | $25.9 | |||||||||
Materials and Supplies | 51.1 | 46.9 | |||||||||
Total Inventories – Net | $74.2 | $72.8 |
Inventories – Net | |||||||
As of December 31 | 2018 | 2017 | |||||
Millions | |||||||
Fuel (a) | $26.0 | $34.8 | |||||
Materials and Supplies | 44.2 | 46.5 | |||||
Raw Materials | 2.8 | 2.8 | |||||
Work in Progress | 6.1 | 4.2 | |||||
Finished Goods | 8.4 | 8.3 | |||||
Reserve for Obsolescence | (0.8 | ) | (0.7 | ) | |||
Total Inventories – Net | $86.7 | $95.9 |
Other Non-Current Assets | |||||||||||
As of December 31 | 2020 | 2019 | |||||||||
Millions | |||||||||||
Contract Assets (a) | $25.5 | $28.0 | |||||||||
Operating Lease Right-of-use Assets | 22.4 | 28.6 | |||||||||
ALLETE Properties | 18.2 | 21.9 | |||||||||
Restricted Cash | 20.1 | 20.4 | |||||||||
Other Postretirement Benefit Plans | 34.2 | 37.5 | |||||||||
Other | 86.4 | 81.8 | |||||||||
Total Other Non-Current Assets | $206.8 | $218.2 |
Other Current Liabilities | |||||||||||
As of December 31 | 2020 | 2019 | |||||||||
Millions | |||||||||||
PSAs | $12.5 | $12.3 | |||||||||
Fuel Adjustment Clause (a) | 3.7 | 0 | |||||||||
Operating Lease Liabilities | 5.9 | 6.9 | |||||||||
Other | 44.6 | 41.2 | |||||||||
Total Other Current Liabilities | $66.7 | $60.4 |
Other Non-Current Liabilities | |||||||||||
As of December 31 | 2020 | 2019 | |||||||||
Millions | |||||||||||
Asset Retirement Obligation | $166.6 | $160.3 | |||||||||
PSAs | 52.1 | 64.6 | |||||||||
Operating Lease Liabilities | 16.5 | 21.8 | |||||||||
Other | 50.1 | 46.3 | |||||||||
Total Other Non-Current Liabilities | $285.3 | $293.0 |
Other Non-Current Assets | |||||||
As of December 31 | 2018 | 2017 | |||||
Millions | |||||||
Contract Assets (a) | $30.7 | $31.6 | |||||
Finance Receivable (b) | 10.4 | 11.0 | |||||
Other | 62.2 | 65.1 | |||||
Total Other Non-Current Assets | $103.3 | $107.7 |
As December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Operating Lease Cost | $8.3 | $9.4 | ||||||
Other Information: | ||||||||
Operating Cash Flows From Operating Leases | $8.3 | $9.4 | ||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Balance Sheet Information Related to Leases: | ||||||||
Other Non-Current Assets | $22.4 | $28.6 | ||||||
Total Operating Lease Right-of-use Assets | $22.4 | $28.6 | ||||||
Other Current Liabilities | $5.9 | $6.9 | ||||||
Other Non-Current Liabilities | 16.5 | 21.8 | ||||||
Total Operating Lease Liabilities | $22.4 | $28.7 | ||||||
Weighted Average Remaining Lease Term (Years): | ||||||||
Operating Leases - Vehicles and Equipment | 3 | 4 | ||||||
Operating Leases - Land and Other | 27 | 28 | ||||||
Weighted Average Discount Rate: | ||||||||
Operating Leases - Vehicles and Equipment | 3.1 | % | 3.7 | % | ||||
Operating Leases - Land and Other | 4.1 | % | 4.1 | % |
Other Current Liabilities | |||||||
As of December 31 | 2018 | 2017 | |||||
Millions | |||||||
Provision for Interim Rate Refund | $40.0 | — | |||||
PSAs | 12.6 | $24.5 | |||||
Contract Liabilities (a) | 7.6 | 8.7 | |||||
Provision for Tax Reform Refund | 10.7 | — | |||||
Contingent Consideration (b) | 3.8 | — | |||||
Other | 53.8 | 50.0 | |||||
Total Other Current Liabilities | $128.5 | $83.2 |
Other Non-Current Liabilities | |||||||
As of December 31 | 2018 | 2017 | |||||
Millions | |||||||
Asset Retirement Obligation | $138.6 | $122.7 | |||||
PSAs | 76.9 | 89.5 | |||||
Contingent Consideration (a) | — | 5.4 | |||||
Other | 47.1 | 49.5 | |||||
Total Other Non-Current Liabilities | $262.6 | $267.1 |
December 31, 2020 | ||||||||||||||
Millions | ||||||||||||||
2021 | $6.0 | |||||||||||||
2022 | 5.0 | |||||||||||||
2023 | 3.2 | |||||||||||||
2024 | 2.9 | |||||||||||||
2025 | 2.9 | |||||||||||||
Thereafter | 8.6 | |||||||||||||
Total Lease Payments Due | 28.6 | |||||||||||||
Less: Imputed Interest | 6.2 | |||||||||||||
Total Lease Obligations | 22.4 | |||||||||||||
Less: Current Lease Obligations | 5.9 | |||||||||||||
Total Long-term Lease Obligations | $16.5 |
Operating Expenses – Other | |||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||
Millions | |||||||
Impairment of Goodwill (a) | — | — | $3.3 | ||||
Change in Fair Value of Contingent Consideration (b) | $(2.0) | $(0.7) | (13.6 | ) | |||
Total Operating Expenses – Other | $(2.0) | $(0.7) | $(10.3) |
Other Income (Expense) - Other | |||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Pension and Other Postretirement Benefit Plan Non-Service Credit (a) | $8.6 | $7.7 | $4.6 | ||||||||
Interest and Investment Earnings | 1.6 | 4.4 | 0.5 | ||||||||
AFUDC - Equity | 1.9 | 2.3 | 1.2 | ||||||||
Gain on Land Sales | 0.4 | 2.1 | 0.9 | ||||||||
Other | 2.2 | 2.2 | 0.6 | ||||||||
Total Other Income (Expense) - Other | $14.7 | $18.7 | $7.8 |
Property, Plant and Equipment | |||||||||||
As of December 31 | 2020 | 2019 | |||||||||
Millions | |||||||||||
Regulated Operations | |||||||||||
Property, Plant and Equipment in Service | $4,972.3 | $4,555.8 | |||||||||
Construction Work in Progress | 79.4 | 383.6 | |||||||||
Accumulated Depreciation | (1,758.0) | (1,635.3) | |||||||||
Regulated Operations – Net | 3,293.7 | 3,304.1 | |||||||||
ALLETE Clean Energy | |||||||||||
Property, Plant and Equipment in Service | 1,275.4 | 686.0 | |||||||||
Construction Work in Progress | 261.0 | 351.3 | |||||||||
Accumulated Depreciation | (112.9) | (86.8) | |||||||||
ALLETE Clean Energy – Net | 1,423.5 | 950.5 | |||||||||
Corporate and Other (a) | |||||||||||
Property, Plant and Equipment in Service | 240.5 | 231.9 | |||||||||
Construction Work in Progress | 9.6 | 3.8 | |||||||||
Accumulated Depreciation | (126.5) | (113.3) | |||||||||
Corporate and Other – Net | 123.6 | 122.4 | |||||||||
Property, Plant and Equipment – Net | $4,840.8 | $4,377.0 |
Property, Plant and Equipment | |||||||
As of December 31 | 2018 | 2017 | |||||
Millions | |||||||
Regulated Operations | |||||||
Property, Plant and Equipment in Service | $4,490.6 | $4,523.7 | |||||
Construction Work in Progress | 251.1 | 121.6 | |||||
Accumulated Depreciation | (1,549.6 | ) | (1,520.5 | ) | |||
Regulated Operations – Net | 3,192.1 | 3,124.8 | |||||
ALLETE Clean Energy | |||||||
Property, Plant and Equipment in Service | 488.4 | 482.5 | |||||
Construction Work in Progress | 164.5 | 144.9 | |||||
Accumulated Depreciation | (73.0 | ) | (60.8 | ) | |||
ALLETE Clean Energy – Net | 579.9 | 566.6 | |||||
U.S. Water Services | |||||||
Property, Plant and Equipment in Service | 30.1 | 24.8 | |||||
Accumulated Depreciation | (14.0 | ) | (10.4 | ) | |||
U.S. Water Services – Net | 16.1 | 14.4 | |||||
Corporate and Other (a) | |||||||
Property, Plant and Equipment in Service | 214.3 | 204.7 | |||||
Construction Work in Progress | 6.6 | 5.0 | |||||
Accumulated Depreciation | (104.6 | ) | (93.1 | ) | |||
Corporate and Other – Net | 116.3 | 116.6 | |||||
Property, Plant and Equipment – Net | $3,904.4 | $3,822.4 |
Estimated Useful Lives of Property, Plant and Equipment (Years) | ||||||||||||||
Regulated Operations | ||||||||||||||
Generation | 3 to 50 | ALLETE Clean Energy | 5 to 35 | |||||||||||
52 to 71 | Corporate and Other | 3 to 50 | ||||||||||||
Distribution | 19 to 68 |
Asset Retirement Obligations | ||||||||
Millions | ||||||||
Obligation as of December 31, 2018 | $138.6 | |||||||
Accretion | 7.2 | |||||||
Liabilities Recognized | 1.4 | |||||||
Liabilities Settled | (4.6) | |||||||
Revisions in Estimated Cash Flows | 17.7 | |||||||
Obligation as of December 31, 2019 | 160.3 | |||||||
Accretion | 8.3 | |||||||
Liabilities Recognized | 1.4 | |||||||
Liabilities Settled | (3.6) | |||||||
Revisions in Estimated Cash Flows | 0.2 | |||||||
Obligation as of December 31, 2020 | $166.6 |
Regulated Utility Plant | Plant in Service | Accumulated Depreciation | Construction Work in Progress | % Ownership | ||||||||||
Millions | ||||||||||||||
As of December 31, 2020 | ||||||||||||||
Boswell Unit 4 | $663.8 | $288.8 | $15.0 | 80 | ||||||||||
CapX2020 | 101.0 | 16.0 | 0 | 9.3 - 14.7 | ||||||||||
Total | $764.8 | $304.8 | $15.0 | |||||||||||
As of December 31, 2019 | ||||||||||||||
Boswell Unit 4 | $662.7 | $258.9 | $5.7 | 80 | ||||||||||
CapX2020 | 101.0 | 13.5 | 0 | 9.3 - 14.7 | ||||||||||
Total | $763.7 | $272.4 | $5.7 |
Regulated Utility Plant | Plant in Service | Accumulated Depreciation | Construction Work in Progress | % Ownership | ||||||
Millions | ||||||||||
As of December 31, 2018 | ||||||||||
Boswell Unit 4 | $650.1 | $229.9 | $6.4 | 80 | ||||||
CapX2020 | 101.0 | 11.0 | — | 9.3 - 14.7 | ||||||
Total | $751.1 | $240.9 | $6.4 | |||||||
As of December 31, 2017 | ||||||||||
Boswell Unit 4 | $668.2 | $222.8 | $8.2 | 80 | ||||||
CapX2020 | 101.0 | 8.4 | — | 9.3 - 14.7 | ||||||
Total | $769.2 | $231.2 | $8.2 |
Regulatory Assets and Liabilities | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Non-Current Regulatory Assets | ||||||||
Defined Benefit Pension and Other Postretirement Benefit Plans (a) | $259.7 | $212.9 | ||||||
Income Taxes (b) | 113.7 | 123.4 | ||||||
Asset Retirement Obligations (c) | 31.6 | 32.0 | ||||||
Cost Recovery Riders (d) | 54.0 | 24.7 | ||||||
Boswell Units 1 and 2 Net Plant and Equipment (e) | 5.0 | 10.7 | ||||||
Manufactured Gas Plant (f) | 8.8 | 8.2 | ||||||
PPACA Income Tax Deferral | 4.5 | 4.8 | ||||||
Other | 3.6 | 3.8 | ||||||
Total Non-Current Regulatory Assets | $480.9 | $420.5 | ||||||
Current Regulatory Liabilities (g) | ||||||||
Fuel Adjustment Clause (h) | $3.7 | 0 | ||||||
Transmission Formula Rates | 2.9 | $1.7 | ||||||
Other | 1.0 | 0.2 | ||||||
Total Current Regulatory Liabilities | 7.6 | 1.9 | ||||||
Non-Current Regulatory Liabilities | ||||||||
Income Taxes (b) | 375.3 | 407.2 | ||||||
Wholesale and Retail Contra AFUDC (i) | 86.6 | 79.3 | ||||||
Plant Removal Obligations (j) | 41.2 | 35.5 | ||||||
Defined Benefit Pension and Other Postretirement Benefit Plans (a) | 4.4 | 17.0 | ||||||
North Dakota Investment Tax Credits (k) | 12.0 | 12.3 | ||||||
Conservation Improvement Program (l) | 1.5 | 5.4 | ||||||
Other | 3.8 | 3.6 | ||||||
Total Non-Current Regulatory Liabilities | 524.8 | 560.3 | ||||||
Total Regulatory Liabilities | $532.4 | $562.2 |
Regulatory Assets and Liabilities | ||||||
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
Non-Current Regulatory Assets | ||||||
Defined Benefit Pension and Other Postretirement Benefit Plans (b) | $218.5 | $220.3 | ||||
Income Taxes (c) | 105.5 | 112.8 | ||||
Asset Retirement Obligations (d) | 32.6 | 29.6 | ||||
Boswell 1 & 2 (l) | 16.3 | — | ||||
Manufactured Gas Plant (e) | 8.0 | 8.1 | ||||
PPACA Income Tax Deferral | 5.0 | 5.0 | ||||
Conservation Improvement Program (f) | — | 3.3 | ||||
Other | 3.6 | 5.6 | ||||
Total Non-Current Regulatory Assets | $389.5 | $384.7 | ||||
Current Regulatory Liabilities (a) | ||||||
Provision for Interim Rate Refund (i) | $40.0 | — | ||||
Provision for Tax Reform Refund (j) | 10.7 | — | ||||
Transmission Formula Rates | 4.4 | — | ||||
Total Current Regulatory Liabilities | 55.1 | — | ||||
Non-Current Regulatory Liabilities | ||||||
Income Taxes (c) | 396.4 | $411.2 | ||||
Wholesale and Retail Contra AFUDC (h) | 64.4 | 57.9 | ||||
Provision for Interim Rate Refund (i) | — | 23.7 | ||||
Plant Removal Obligations | 25.1 | 20.3 | ||||
North Dakota Investment Tax Credits (k) | 14.7 | 14.1 | ||||
Cost Recovery Riders (g) | 6.9 | 2.2 | ||||
Transmission Formula Rates | 1.6 | — | ||||
Other | 3.0 | 2.6 | ||||
Total Non-Current Regulatory Liabilities | 512.1 | 532.0 | ||||
Total Regulatory Liabilities | $567.2 | $532.0 |
ALLETE’s Investment in ATC | ||||||||
Year Ended December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Equity Investment Beginning Balance | $141.6 | $128.1 | ||||||
Cash Investments | 2.7 | 6.6 | ||||||
Equity in ATC Earnings | 22.3 | 21.7 | ||||||
Distributed ATC Earnings | (18.9) | (16.1) | ||||||
Amortization of the Remeasurement of Deferred Income Taxes | 1.3 | 1.3 | ||||||
Equity Investment Ending Balance | $149.0 | $141.6 |
ALLETE’s Investment in ATC | ||||||
Year Ended December 31 | 2018 | 2017 | ||||
Millions | ||||||
Equity Investment Beginning Balance | $118.7 | $135.6 | ||||
Cash Investments | 6.2 | 7.8 | ||||
Equity in ATC Earnings | 17.5 | 22.5 | ||||
Distributed ATC Earnings | (15.2 | ) | (19.3 | ) | ||
Remeasurement of Deferred Income Taxes (a) | — | (27.9 | ) | |||
Amortization of the Remeasurement of Deferred Income Taxes | 0.9 | — | ||||
Equity Investment Ending Balance | $128.1 | $118.7 |
ATC Summarized Financial Data | ATC Summarized Financial Data | |||||||||||||
Balance Sheet Data | Balance Sheet Data | |||||||||||||
As of December 31 | 2018 | 2017 | As of December 31 | 2020 | 2019 | |||||||||
Millions | Millions | |||||||||||||
Current Assets | $87.2 | $87.7 | Current Assets | $92.8 | $84.6 | |||||||||
Non-Current Assets | 4,928.8 | 4,598.9 | Non-Current Assets | 5,400.5 | 5,244.3 | |||||||||
Total Assets | $5,016.0 | $4,686.6 | Total Assets | $5,493.3 | $5,328.9 | |||||||||
Current Liabilities | $640.0 | $767.2 | Current Liabilities | $310.8 | $502.6 | |||||||||
Long-Term Debt | 2,014.0 | 1,790.6 | Long-Term Debt | 2,512.2 | 2,312.8 | |||||||||
Other Non-Current Liabilities | 295.3 | 240.3 | Other Non-Current Liabilities | 378.2 | 298.9 | |||||||||
Members’ Equity | 2,066.7 | 1,888.5 | Members’ Equity | 2,292.1 | 2,214.6 | |||||||||
Total Liabilities and Members’ Equity | $5,016.0 | $4,686.6 | Total Liabilities and Members’ Equity | $5,493.3 | $5,328.9 |
Income Statement Data | Income Statement Data | |||||||||||||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | Year Ended December 31 | 2020 | 2019 | 2018 | |||||||||||||
Millions | Millions | |||||||||||||||||||
Revenue | $690.5 | $721.6 | $650.8 | Revenue | $758.1 | $744.4 | $690.5 | |||||||||||||
Operating Expense | 358.7 | 344.9 | 322.5 | Operating Expense | 372.4 | 373.5 | 358.7 | |||||||||||||
Other Expense | 108.3 | 104.1 | 95.5 | Other Expense | 110.9 | 110.5 | 108.3 | |||||||||||||
Net Income | $223.5 | $272.6 | $232.8 | Net Income | $274.8 | $260.4 | $223.5 | |||||||||||||
ALLETE’s Equity in Net Income | $17.5 | $22.5 | $18.5 | ALLETE’s Equity in Net Income | $22.3 | $21.7 | $17.5 |
December 31, 2017 | Additions | Amortization | December 31, 2018 | ||||||||||
Millions | |||||||||||||
Intangible Assets | |||||||||||||
Definite-Lived Intangible Assets | |||||||||||||
Customer Relationships | $54.7 | $0.2 | $(4.2) | $50.7 | |||||||||
Developed Technology and Other (a) | 6.3 | 2.6 | (1.4) | 7.5 | |||||||||
Total Definite-Lived Intangible Assets | 61.0 | 2.8 | (5.6) | 58.2 | |||||||||
Indefinite-Lived Intangible Assets | |||||||||||||
Trademarks and Trade Names | 16.6 | — | n/a | 16.6 | |||||||||
Total Intangible Assets | $77.6 | $2.8 | $(5.6) | $74.8 |
Other Investments | ||||||
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
ALLETE Properties | $24.4 | $26.4 | ||||
Available-for-sale Securities (a) | 20.2 | 19.1 | ||||
Cash Equivalents | 1.0 | 3.8 | ||||
Other | 3.5 | 3.8 | ||||
Total Other Investments | $49.1 | $53.1 |
Fair Value as of December 31, 2020 | |||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Millions | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investments (a) | |||||||||||||||||||||||
Available-for-sale – Equity Securities | $7.2 | 0 | 0 | $7.2 | |||||||||||||||||||
Available-for-sale – Corporate and Governmental Debt Securities (b) | 0 | $10.4 | 0 | 10.4 | |||||||||||||||||||
Cash Equivalents | 5.5 | 0 | 0 | 5.5 | |||||||||||||||||||
Total Fair Value of Assets | $12.7 | $10.4 | 0 | $23.1 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deferred Compensation (c) | 0 | $21.0 | 0 | $21.0 | |||||||||||||||||||
Total Fair Value of Liabilities | 0 | $21.0 | 0 | $21.0 | |||||||||||||||||||
Total Net Fair Value of Assets (Liabilities) | $12.7 | $(10.6) | 0 | $2.1 |
Fair Value as of December 31, 2018 | |||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Millions | |||||||||||||||
Assets: | |||||||||||||||
Investments (a) | |||||||||||||||
Available-for-sale – Equity Securities | $12.2 | — | — | $12.2 | |||||||||||
Available-for-sale – Corporate and Governmental Debt Securities | — | $8.0 | — | 8.0 | |||||||||||
Cash Equivalents | 1.0 | — | — | 1.0 | |||||||||||
Total Fair Value of Assets | $13.2 | $8.0 | — | $21.2 | |||||||||||
Liabilities: | |||||||||||||||
Deferred Compensation (b) | — | $19.8 | — | $19.8 | |||||||||||
U.S. Water Services Contingent Consideration (c) | — | — | $3.8 | 3.8 | |||||||||||
Total Fair Value of Liabilities | — | $19.8 | $3.8 | $23.6 | |||||||||||
Total Net Fair Value of Assets (Liabilities) | $13.2 | $(11.8) | $(3.8) | $(2.4) |
Fair Value as of December 31, 2017 | |||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Millions | |||||||||||||||
Assets: | |||||||||||||||
Investments (a) | |||||||||||||||
Available-for-sale – Equity Securities | $10.2 | — | — | $10.2 | |||||||||||
Available-for-sale – Corporate and Governmental Debt Securities | — | $8.9 | — | 8.9 | |||||||||||
Cash Equivalents | 3.8 | — | — | 3.8 | |||||||||||
Total Fair Value of Assets | $14.0 | $8.9 | — | $22.9 | |||||||||||
Liabilities: (b) | |||||||||||||||
Deferred Compensation | — | $18.2 | — | $18.2 | |||||||||||
U.S. Water Services Contingent Consideration | — | — | $5.4 | 5.4 | |||||||||||
Total Fair Value of Liabilities | — | $18.2 | $5.4 | $23.6 | |||||||||||
Total Net Fair Value of Assets (Liabilities) | $14.0 | $(9.3) | $(5.4) | $(0.7) |
Fair Value as of December 31, 2019 | |||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Millions | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investments (a) | |||||||||||||||||||||||
Available-for-sale – Equity Securities | $11.1 | 0 | 0 | $11.1 | |||||||||||||||||||
Available-for-sale – Corporate and Governmental Debt Securities | 0 | $9.7 | 0 | 9.7 | |||||||||||||||||||
Cash Equivalents | 0.9 | 0 | 0 | 0.9 | |||||||||||||||||||
Total Fair Value of Assets | $12.0 | $9.7 | 0 | $21.7 | |||||||||||||||||||
Liabilities: (b) | |||||||||||||||||||||||
Deferred Compensation | 0 | $21.2 | 0 | $21.2 | |||||||||||||||||||
Total Fair Value of Liabilities | 0 | $21.2 | 0 | $21.2 | |||||||||||||||||||
Total Net Fair Value of Assets (Liabilities) | $12.0 | $(11.5) | 0 | $0.5 |
Financial Instruments | Carrying Amount | Fair Value | |
Millions | |||
Long-Term Debt, Including Long-Term Debt Due Within One Year | |||
December 31, 2018 | $1,495.2 | $1,534.6 | |
December 31, 2017 | $1,513.3 | $1,627.6 |
Financial Instruments | Carrying Amount | Fair Value | |||||||||
Millions | |||||||||||
Short-Term and Long-Term Debt (a) | |||||||||||
December 31, 2020 | $1,806.4 | $2,122.0 | |||||||||
December 31, 2019 | $1,622.6 | $1,791.8 |
Maturity Date | Principal Amount | Interest Rate | ||||||
August 1, 2030 | $46 Million | 2.50% | ||||||
August 1, 2050 | $94 Million | 3.30% |
Long-Term Debt | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
First Mortgage Bonds | ||||||||
5.28% Series Due 2020 | 0 | $35.0 | ||||||
2.80% Series Due 2020 | 0 | 40.0 | ||||||
4.85% Series Due 2021 | $15.0 | 15.0 | ||||||
3.02% Series Due 2021 | 60.0 | 60.0 | ||||||
3.40% Series Due 2022 | 75.0 | 75.0 | ||||||
6.02% Series Due 2023 | 75.0 | 75.0 | ||||||
3.69% Series Due 2024 | 60.0 | 60.0 | ||||||
4.90% Series Due 2025 | 30.0 | 30.0 | ||||||
5.10% Series Due 2025 | 30.0 | 30.0 | ||||||
3.20% Series Due 2026 | 75.0 | 75.0 | ||||||
5.99% Series Due 2027 | 60.0 | 60.0 | ||||||
3.30% Series Due 2028 | 40.0 | 40.0 | ||||||
4.08% Series Due 2029 | 70.0 | 70.0 | ||||||
3.74% Series Due 2029 | 50.0 | 50.0 | ||||||
2.50% Series Due 2030 | 46.0 | 0 | ||||||
3.86% Series Due 2030 | 60.0 | 60.0 | ||||||
5.69% Series Due 2036 | 50.0 | 50.0 | ||||||
6.00% Series Due 2040 | 35.0 | 35.0 | ||||||
5.82% Series Due 2040 | 45.0 | 45.0 | ||||||
4.08% Series Due 2042 | 85.0 | 85.0 | ||||||
4.21% Series Due 2043 | 60.0 | 60.0 | ||||||
4.95% Series Due 2044 | 40.0 | 40.0 | ||||||
5.05% Series Due 2044 | 40.0 | 40.0 | ||||||
4.39% Series Due 2044 | 50.0 | 50.0 | ||||||
4.07% Series Due 2048 | 60.0 | 60.0 | ||||||
4.47% Series Due 2049 | 30.0 | 30.0 | ||||||
3.30% Series Due 2050 | 94.0 | 0 | ||||||
Variable Demand Revenue Refunding Bonds Series 1997 A Due 2020 | 0 | 13.5 | ||||||
Unsecured Term Loan Variable Rate Due 2020 | 0 | 110.0 | ||||||
ALLETE Clean Energy Unsecured Term Loan Variable Rate Due 2021 | 65.0 | 0 | ||||||
Unsecured Term Loan Variable Rate Due 2021 | 40.0 | 0 | ||||||
Armenia Mountain Senior Secured Notes 3.26% Due 2024 | 38.6 | 47.8 | ||||||
Unsecured Senior Notes 2.65% Due 2025 | 150.0 | 0 | ||||||
Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 2025 | 27.8 | 27.8 | ||||||
Senior Unsecured Notes 3.11% Due 2027 | 80.0 | 80.0 | ||||||
SWL&P First Mortgage Bonds 4.15% Series Due 2028 | 15.0 | 15.0 | ||||||
SWL&P First Mortgage Bonds 4.14% Series Due 2048 | 12.0 | 12.0 | ||||||
Other Long-Term Debt, 2.97% – 5.75% Due 2021 – 2037 | 43.0 | 46.5 | ||||||
Unamortized Debt Issuance Costs | (9.5) | (8.8) | ||||||
Total Long-Term Debt | 1,796.9 | 1,613.8 | ||||||
Less: Due Within One Year | 203.7 | 212.9 | ||||||
Net Long-Term Debt | $1,593.2 | $1,400.9 |
Long-Term Debt | ||||||
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
First Mortgage Bonds | ||||||
1.83% Series Due 2018 | — | $50.0 | ||||
8.17% Series Due 2019 | $42.0 | 42.0 | ||||
5.28% Series Due 2020 | 35.0 | 35.0 | ||||
2.80% Series Due 2020 | 40.0 | 40.0 | ||||
4.85% Series Due 2021 | 15.0 | 15.0 | ||||
3.02% Series Due 2021 | 60.0 | 60.0 | ||||
3.40% Series Due 2022 | 75.0 | 75.0 | ||||
6.02% Series Due 2023 | 75.0 | 75.0 | ||||
3.69% Series Due 2024 | 60.0 | 60.0 | ||||
4.90% Series Due 2025 | 30.0 | 30.0 | ||||
5.10% Series Due 2025 | 30.0 | 30.0 | ||||
3.20% Series Due 2026 | 75.0 | 75.0 | ||||
5.99% Series Due 2027 | 60.0 | 60.0 | ||||
3.30% Series Due 2028 | 40.0 | 40.0 | ||||
3.74% Series Due 2029 | 50.0 | 50.0 | ||||
3.86% Series Due 2030 | 60.0 | 60.0 | ||||
5.69% Series Due 2036 | 50.0 | 50.0 | ||||
6.00% Series Due 2040 | 35.0 | 35.0 | ||||
5.82% Series Due 2040 | 45.0 | 45.0 | ||||
4.08% Series Due 2042 | 85.0 | 85.0 | ||||
4.21% Series Due 2043 | 60.0 | 60.0 | ||||
4.95% Series Due 2044 | 40.0 | 40.0 | ||||
5.05% Series Due 2044 | 40.0 | 40.0 | ||||
4.39% Series Due 2044 | 50.0 | 50.0 | ||||
4.07% Series Due 2048 | 60.0 | — | ||||
Variable Demand Revenue Refunding Bonds Series 1997 A Due 2020 | 13.5 | 13.5 | ||||
Unsecured Term Loan Variable Rate Due 2020 | 10.0 | 40.0 | ||||
Armenia Mountain Senior Secured Notes 3.26% Due 2024 | 57.2 | 65.9 | ||||
Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 2025 | 27.8 | 27.8 | ||||
Senior Unsecured Notes 3.11% Due 2027 | 80.0 | 80.0 | ||||
SWL&P First Mortgage Bonds 4.15% Series Due 2028 | 15.0 | 15.0 | ||||
SWL&P First Mortgage Bonds 4.14% Series Due 2048 | 12.0 | — | ||||
Other Long-Term Debt, 3.11% – 5.75% Due 2019 – 2037 | 67.7 | 69.1 | ||||
Unamortized Debt Issuance Costs | (9.2 | ) | (10.0 | ) | ||
Total Long-Term Debt | 1,486.0 | 1,503.3 | ||||
Less: Due Within One Year | 57.5 | 64.1 | ||||
Net Long-Term Debt | $1,428.5 | $1,439.2 |
As of December 31, 2020 | ||||||||||||||||||||
Millions | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||
Capital Purchase Obligations | $235.0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Easements (a) | $5.8 | $6.0 | $6.1 | $6.1 | $6.2 | $175.9 | ||||||||||||||
PPAs (b) | $130.8 | $143.7 | $143.8 | $136.7 | $134.6 | $1,215.6 | ||||||||||||||
Other Purchase Obligations (c) | $40.1 | 0 | 0 | 0 | 0 | 0 |
As of December 31, 2018 | ||||||||||||||||||
Millions | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||
Coal, Rail and Shipping Contracts | $20.8 | $9.0 | $7.5 | — | — | — | ||||||||||||
Operating Leases | $9.9 | $7.9 | $6.1 | $4.9 | $3.1 | $9.4 | ||||||||||||
Easements | $4.8 | $4.9 | $4.9 | $5.0 | $5.1 | $136.3 | ||||||||||||
Other (a) | $31.6 | $0.3 | $0.3 | — | — | $0.1 | ||||||||||||
PPAs (b) | $107.3 | $115.3 | $145.4 | $145.7 | $145.8 | $1,550.7 |
Counterparty | Quantity | Product | Commencement | Expiration | Pricing | ||||||||||||
PPAs | |||||||||||||||||
Calpine Corporation | 25 MW | Capacity | June 2019 | May 2026 | Fixed | ||||||||||||
Energy | May 2011 | April 2022 | Forward Market Prices |
Capacity / Energy | June 2020 | May 2035 | (b) | ||||||||||||||
PPA 3 | 133 MW | Energy | June 2020 | June 2040 | Forward Market Prices |
Capacity / Energy | December 2020 | December 2040 | Fixed | ||||||||||||||
Oliver Wind I | (c) | Energy | December 2006 | December 2040 | Fixed | ||||||||||||
Oliver Wind II | (c) | Energy | December 2007 | December 2040 | Fixed | ||||||||||||
Counterparty | Quantity | Product | Commencement | Expiration | Pricing | ||||||||||||
PSAs | |||||||||||||||||
Basin | |||||||||||||||||
PSA 1 | (a) | Capacity | June 2022 | May 2025 | Fixed | ||||||||||||
PSA 2 | 100 MW | Capacity | June 2025 | May 2028 | Fixed | ||||||||||||
Great River Energy | 100 MW | Capacity | June 2022 | May 2025 | Fixed | ||||||||||||
Minnkota Power | (b) | Capacity / Energy | June 2014 | December 2026 | (b) | ||||||||||||
Oconto Electric Cooperative | 25 MW | Capacity / Energy | January 2019 | May 2026 | Fixed | ||||||||||||
Silver Bay Power | (c) | Energy | January 2017 | December 2031 | (d) |
Summary of Common Stock | Shares | Equity | ||||||
Thousands | Millions | |||||||
Balance as of December 31, 2017 | 51,117 | $1,401.4 | ||||||
Employee Stock Purchase Plan | 11 | 0.8 | ||||||
Invest Direct | 277 | 20.7 | ||||||
Options and Stock Awards | 57 | 2.1 | ||||||
Contributions to RSOP | 47 | 3.5 | ||||||
Balance as of December 31, 2018 | 51,509 | 1,428.5 | ||||||
Employee Stock Purchase Plan | 8 | 0.7 | ||||||
Invest Direct | 38 | 3.0 | ||||||
Options and Stock Awards | 85 | 1.3 | ||||||
Contributions to RSOP | 39 | 3.2 | ||||||
Balance as of December 31, 2019 | 51,679 | 1,436.7 | ||||||
Employee Stock Purchase Plan | 13 | 0.7 | ||||||
Invest Direct | 309 | 18.3 | ||||||
Options and Stock Awards | 35 | 2.2 | ||||||
Contributions to RSOP | 49 | 3.0 | ||||||
Balance as of December 31, 2020 | 52,085 | $1,460.9 |
Summary of Common Stock | Shares | Equity | |||
Thousands | Millions | ||||
Balance as of December 31, 2015 | 49,075 | $1,271.4 | |||
Employee Stock Purchase Plan | 16 | 0.9 | |||
Invest Direct | 344 | 20.0 | |||
Options and Stock Awards | 65 | 3.7 | |||
Contributions to RSOP | 60 | 3.3 | |||
Equity Issuance Program | 130 | 8.0 | |||
Received for Sale of Land Inventory | (130 | ) | (8.0 | ) | |
Acquisition of Non-Controlling Interest | — | (4.0 | ) | ||
Balance as of December 31, 2016 | 49,560 | 1,295.3 | |||
Employee Stock Purchase Plan | 12 | 0.8 | |||
Invest Direct | 257 | 19.0 | |||
Options and Stock Awards | 22 | 3.6 | |||
Contributions to RSOP | 50 | 3.5 | |||
Equity Issuance Program | 1,000 | 65.7 | |||
Contribution to Pension | 216 | 13.5 | |||
Balance as of December 31, 2017 | 51,117 | 1,401.4 | |||
Employee Stock Purchase Plan | 11 | 0.8 | |||
Invest Direct | 277 | 20.7 | |||
Options and Stock Awards | 57 | 2.1 | |||
Contributions to RSOP | 47 | 3.5 | |||
Balance as of December 31, 2018 | 51,509 | $1,428.5 |
Reconciliation of Basic and Diluted | |||||||||||
Earnings Per Share | Dilutive | ||||||||||
Year Ended December 31 | Basic | Securities | Diluted | ||||||||
Millions Except Per Share Amounts | |||||||||||
2020 | |||||||||||
Net Income Attributable to ALLETE | $174.2 | $174.2 | |||||||||
Average Common Shares | 51.9 | 0 | 51.9 | ||||||||
Earnings Per Share | $3.36 | $3.35 | |||||||||
2019 | |||||||||||
Net Income Attributable to ALLETE | $185.6 | $185.6 | |||||||||
Average Common Shares | 51.6 | 0.1 | 51.7 | ||||||||
Earnings Per Share | $3.59 | $3.59 | |||||||||
2018 | |||||||||||
Net Income Attributable to ALLETE | $174.1 | $174.1 | |||||||||
Average Common Shares | 51.3 | 0.2 | 51.5 | ||||||||
Earnings Per Share | $3.39 | $3.38 | |||||||||
Reconciliation of Basic and Diluted | ||||||||
Earnings Per Share | Dilutive | |||||||
Year Ended December 31 | Basic | Securities | Diluted | |||||
Millions Except Per Share Amounts | ||||||||
2018 | ||||||||
Net Income Attributable to ALLETE | $174.1 | $174.1 | ||||||
Average Common Shares | 51.3 | 0.2 | 51.5 | |||||
Earnings Per Share | $3.39 | $3.38 | ||||||
Dividends Per Share | $2.24 | $2.24 | ||||||
2017 | ||||||||
Net Income Attributable to ALLETE | $172.2 | $172.2 | ||||||
Average Common Shares | 50.8 | 0.2 | 51.0 | |||||
Earnings Per Share | $3.39 | $3.38 | ||||||
Dividends Per Share | $2.14 | $2.14 | ||||||
2016 | ||||||||
Net Income Attributable to ALLETE | $155.3 | $155.3 | ||||||
Average Common Shares | 49.3 | 0.2 | 49.5 | |||||
Earnings Per Share | $3.15 | $3.14 | ||||||
Dividends Per Share | $2.08 | $2.08 |
Income Tax Expense | |||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Current Income Tax Expense (a) | |||||||||||
Federal | 0 | 0 | 0 | ||||||||
State | 0 | $0.1 | $0.3 | ||||||||
Total Current Income Tax Expense | 0 | $0.1 | $0.3 | ||||||||
Deferred Income Tax Expense (Benefit) | |||||||||||
Federal (b) | $(48.8) | $(27.8) | $(26.2) | ||||||||
State | 9.8 | 21.7 | 11.0 | ||||||||
Investment Tax Credit Amortization | (0.5) | (0.6) | (0.6) | ||||||||
Total Deferred Income Tax Expense (Benefit) | $(39.5) | $(6.7) | $(15.8) | ||||||||
Total Income Tax Expense (Benefit) | $(39.5) | $(6.6) | $(15.5) |
Income Tax Expense | |||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Current Income Tax Expense (a) | |||||||||
Federal | — | — | — | ||||||
State | $0.3 | $0.3 | $0.4 | ||||||
Total Current Income Tax Expense | $0.3 | $0.3 | $0.4 | ||||||
Deferred Income Tax Expense (Benefit) | |||||||||
Federal (b) | $(26.2) | $12.1 | $12.0 | ||||||
Federal – Remeasurement of Deferred Income Taxes (c) | — | (13.0 | ) | — | |||||
State | 11.0 | 15.8 | 8.1 | ||||||
Investment Tax Credit Amortization | (0.6 | ) | (0.5 | ) | (0.7 | ) | |||
Total Deferred Income Tax Expense (Benefit) | $(15.8) | $14.4 | $19.4 | ||||||
Total Income Tax Expense (Benefit) | $(15.5) | $14.7 | $19.8 |
Reconciliation of Taxes from Federal Statutory | ||||||||||||||
Rate to Total Income Tax Expense | ||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | |||||||||||
Millions | ||||||||||||||
Income Before Non-Controlling Interest and Income Taxes | $122.1 | $178.9 | $158.6 | |||||||||||
Statutory Federal Income Tax Rate | 21 | % | 21 | % | 21 | % | ||||||||
Income Taxes Computed at Statutory Federal Rate | $25.6 | $37.6 | $33.3 | |||||||||||
Increase (Decrease) in Tax Due to: | ||||||||||||||
State Income Taxes – Net of Federal Income Tax Benefit | 7.7 | 17.2 | 8.9 | |||||||||||
Production Tax Credits | (62.7) | (50.7) | (45.0) | |||||||||||
Regulatory Differences – Excess Deferred Tax Benefit (a) | (9.9) | (8.8) | (8.2) | |||||||||||
U.S. Water Services Sale of Stock Basis Difference | 0 | 1.7 | 0 | |||||||||||
Change in Fair Value of Contingent Consideration | 0 | 0 | (0.4) | |||||||||||
Non-Controlling Interest | 2.7 | 0 | 0 | |||||||||||
Other | (2.9) | (3.6) | (4.1) | |||||||||||
Total Income Tax Expense (Benefit) | $(39.5) | $(6.6) | $(15.5) |
Reconciliation of Taxes from Federal Statutory | |||||||||
Rate to Total Income Tax Expense | |||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Income Before Non-Controlling Interest and Income Taxes | $158.6 | $186.9 | $175.6 | ||||||
Statutory Federal Income Tax Rate | 21 | % | 35 | % | 35 | % | |||
Income Taxes Computed at Statutory Federal Rate | $33.3 | $65.4 | $61.5 | ||||||
Increase (Decrease) in Tax Due to: | |||||||||
State Income Taxes – Net of Federal Income Tax Benefit | 8.9 | 10.5 | 5.6 | ||||||
Production Tax Credits | (45.0 | ) | (45.1 | ) | (41.5 | ) | |||
Regulatory Differences – Excess Deferred Tax Benefit (a) | (8.2 | ) | 1.2 | 1.4 | |||||
Change in Fair Value of Contingent Consideration | (0.4 | ) | — | (3.8 | ) | ||||
Remeasurement of Deferred Income Taxes (b) | — | (13.0 | ) | — | |||||
Other | (4.1 | ) | (4.3 | ) | (3.4 | ) | |||
Total Income Tax Expense (Benefit) | $(15.5) | $14.7 | $19.8 |
Deferred Income Tax Assets and Liabilities | ||||||
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
Deferred Income Tax Assets | ||||||
Employee Benefits and Compensation | $62.2 | $65.9 | ||||
Property-Related | 95.2 | 104.3 | ||||
NOL Carryforwards | 86.1 | 99.1 | ||||
Tax Credit Carryforwards | 349.8 | 294.3 | ||||
Power Sales Agreements | 27.5 | 35.0 | ||||
Regulatory Liabilities | 113.4 | 117.7 | ||||
Other | 25.1 | 33.3 | ||||
Gross Deferred Income Tax Assets | 759.3 | 749.6 | ||||
Deferred Income Tax Asset Valuation Allowance | (66.5 | ) | (60.0 | ) | ||
Total Deferred Income Tax Assets | $692.8 | $689.6 | ||||
Deferred Income Tax Liabilities | ||||||
Property-Related | $752.5 | $758.3 | ||||
Regulatory Asset for Benefit Obligations | 61.0 | 61.4 | ||||
Unamortized Investment Tax Credits | 32.2 | 32.8 | ||||
Partnership Basis Differences | 40.8 | 34.9 | ||||
Regulatory Assets | 29.9 | 32.0 | ||||
Other | — | 0.7 | ||||
Total Deferred Income Tax Liabilities | $916.4 | $920.1 | ||||
Net Deferred Income Taxes (a) | $223.6 | $230.5 |
Deferred Income Tax Assets and Liabilities | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Deferred Income Tax Assets | ||||||||
Employee Benefits and Compensation | $67.6 | $49.9 | ||||||
Property-Related | 61.4 | 76.9 | ||||||
NOL Carryforwards | 60.7 | 63.2 | ||||||
Tax Credit Carryforwards | 455.7 | 395.5 | ||||||
Power Sales Agreements | 20.1 | 23.7 | ||||||
Regulatory Liabilities | 107.7 | 116.9 | ||||||
Other | 22.4 | 23.4 | ||||||
Gross Deferred Income Tax Assets | 795.6 | 749.5 | ||||||
Deferred Income Tax Asset Valuation Allowance | (69.9) | (70.0) | ||||||
Total Deferred Income Tax Assets | $725.7 | $679.5 | ||||||
Deferred Income Tax Liabilities | ||||||||
Property-Related | $691.5 | $713.4 | ||||||
Regulatory Asset for Benefit Obligations | 71.5 | 54.5 | ||||||
Unamortized Investment Tax Credits | 31.1 | 31.6 | ||||||
Partnership Basis Differences | 86.7 | 49.4 | ||||||
Regulatory Assets | 32.6 | 35.4 | ||||||
Other | 8.0 | 8.0 | ||||||
Total Deferred Income Tax Liabilities | $921.4 | $892.3 | ||||||
Net Deferred Income Taxes (a) | $195.7 | $212.8 | ||||||
NOL and Tax Credit Carryforwards | ||||
As of December 31 | 2018 | 2017 | ||
Millions | ||||
Federal NOL Carryforwards (a) | $319.0 | $375.2 | ||
Federal Tax Credit Carryforwards | $256.4 | $209.2 | ||
State NOL Carryforwards (a) | $305.8 | $289.9 | ||
State Tax Credit Carryforwards (b) | $27.4 | $25.6 |
NOL and Tax Credit Carryforwards | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Federal NOL Carryforwards (a) | $197.5 | $211.3 | ||||||
Federal Tax Credit Carryforwards | $362.9 | $302.5 | ||||||
State NOL Carryforwards (a) | $270.1 | $274.8 | ||||||
State Tax Credit Carryforwards (b) | $23.4 | $23.4 |
Gross Unrecognized Income Tax Benefits | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Balance at January 1 | $1.4 | $1.6 | $1.7 | ||||||||
Additions for Tax Positions Related to the Current Year | 0.1 | 0.1 | 0.1 | ||||||||
Additions for Tax Positions Related to Prior Years | 0 | 0.1 | 0.1 | ||||||||
Reductions for Tax Positions Related to Prior Years | (0.1) | (0.4) | (0.2) | ||||||||
Lapse of Statute | 0 | 0 | (0.1) | ||||||||
Balance as of December 31 | $1.4 | $1.4 | $1.6 |
Gross Unrecognized Income Tax Benefits | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Balance at January 1 | $1.7 | $2.0 | $2.4 | ||||||
Additions for Tax Positions Related to the Current Year | 0.1 | 0.1 | 0.1 | ||||||
Additions for Tax Positions Related to Prior Years | 0.1 | 0.1 | 0.2 | ||||||
Reductions for Tax Positions Related to Prior Years | (0.2 | ) | (0.1 | ) | (0.3 | ) | |||
Lapse of Statute | (0.1 | ) | (0.4 | ) | (0.4 | ) | |||
Balance as of December 31 | $1.6 | $1.7 | $2.0 |
Pension Obligation and Funded Status | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Accumulated Benefit Obligation | $931.2 | $812.0 | ||||||
Change in Benefit Obligation | ||||||||
Obligation, Beginning of Year | $854.0 | $747.0 | ||||||
Service Cost | 10.7 | 9.3 | ||||||
Interest Cost | 27.9 | 31.9 | ||||||
Actuarial Loss (a) | 118.7 | 98.3 | ||||||
Benefits Paid | (54.4) | (53.4) | ||||||
Participant Contributions | 8.8 | 20.9 | ||||||
Obligation, End of Year | $965.7 | $854.0 | ||||||
Change in Plan Assets | ||||||||
Fair Value, Beginning of Year | $699.6 | $598.0 | ||||||
Actual Return on Plan Assets | 93.0 | 122.1 | ||||||
Employer Contribution (b) | 21.2 | 32.9 | ||||||
Benefits Paid | (54.4) | (53.4) | ||||||
Fair Value, End of Year | $759.4 | $699.6 | ||||||
Funded Status, End of Year | $(206.3) | $(154.4) | ||||||
Net Pension Amounts Recognized in Consolidated Balance Sheet Consist of: | ||||||||
Current Liabilities | $(2.2) | $(1.6) | ||||||
Non-Current Liabilities | $(204.1) | $(152.8) |
Pension Obligation and Funded Status | ||||||
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
Accumulated Benefit Obligation | $713.7 | $745.4 | ||||
Change in Benefit Obligation | ||||||
Obligation, Beginning of Year | $793.2 | $743.3 | ||||
Service Cost | 11.0 | 10.2 | ||||
Interest Cost | 29.6 | 32.5 | ||||
Plan Amendments | (1.5 | ) | — | |||
Plan Curtailments | (6.9 | ) | — | |||
Actuarial (Gain) Loss | (53.0 | ) | 44.8 | |||
Benefits Paid | (49.5 | ) | (51.0 | ) | ||
Participant Contributions | 24.1 | 13.4 | ||||
Obligation, End of Year | $747.0 | $793.2 | ||||
Change in Plan Assets | ||||||
Fair Value, Beginning of Year | $628.2 | $557.5 | ||||
Actual Return on Plan Assets | (21.2 | ) | 91.6 | |||
Employer Contribution (a) | 40.5 | 30.1 | ||||
Benefits Paid | (49.5 | ) | (51.0 | ) | ||
Fair Value, End of Year | $598.0 | $628.2 | ||||
Funded Status, End of Year | $(149.0) | $(165.0) | ||||
Net Pension Amounts Recognized in Consolidated Balance Sheet Consist of: | ||||||
Current Liabilities | $(1.6) | $(1.4) | ||||
Non-Current Liabilities | $(147.4) | $(163.6) |
Reconciliation of Net Pension Amounts Recognized in Consolidated Balance Sheet | ||||
As of December 31 | 2018 | 2017 | ||
Millions | ||||
Net Loss | $(230.5) | $(236.2) | ||
Prior Service Cost | 1.4 | — | ||
Accumulated Contributions in Excess of Net Periodic Benefit Cost (Prepaid Pension Asset) | 80.1 | 71.2 | ||
Total Net Pension Amounts Recognized in Consolidated Balance Sheet | $(149.0) | $(165.0) |
Reconciliation of Net Pension Amounts Recognized in Consolidated Balance Sheet | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Net Loss | $(299.0) | $(243.4) | ||||||
Prior Service Credit | 1.1 | 1.3 | ||||||
Accumulated Contributions in Excess of Net Periodic Benefit Cost (Prepaid Pension Asset) | 91.6 | 87.7 | ||||||
Total Net Pension Amounts Recognized in Consolidated Balance Sheet | $(206.3) | $(154.4) |
Components of Net Periodic Pension Cost | |||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Service Cost | $11.0 | $10.2 | $8.1 | ||||||
Non-Service Cost Components (a) | |||||||||
Interest Cost | 29.6 | 32.5 | 33.2 | ||||||
Expected Return on Plan Assets | (44.4 | ) | (42.4 | ) | (43.6 | ) | |||
Amortization of Loss | 11.4 | 9.9 | 9.5 | ||||||
Amortization of Prior Service Cost | (0.1 | ) | — | — | |||||
Net Pension Cost | $7.5 | $10.2 | $7.2 |
Other Changes in Pension Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | ||||
Year Ended December 31 | 2018 | 2017 | ||
Millions | ||||
Net (Gain) Loss | $5.8 | $(4.3) | ||
Amortization of Prior Service Cost | 0.1 | — | ||
Prior Service Cost Arising During the Period | (1.6 | ) | — | |
Amortization of Loss | (11.4 | ) | (9.9 | ) |
Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | $(7.1) | $(14.2) |
Components of Net Periodic Pension Cost | |||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Service Cost | $10.7 | $9.3 | $11.0 | ||||||||
Non-Service Cost Components (a) | |||||||||||
Interest Cost | 27.9 | 31.9 | 29.6 | ||||||||
Expected Return on Plan Assets | (42.7) | (44.2) | (44.4) | ||||||||
Amortization of Loss | 12.8 | 7.5 | 11.4 | ||||||||
Amortization of Prior Service Credit | (0.2) | (0.1) | (0.1) | ||||||||
Net Pension Cost | $8.5 | $4.4 | $7.5 |
Other Changes in Pension Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | ||||||||
Year Ended December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Net Loss | $68.4 | $20.4 | ||||||
Amortization of Prior Service Credit | 0.2 | 0.1 | ||||||
Amortization of Loss | (12.8) | (7.5) | ||||||
Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | $55.8 | $13.0 |
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Projected Benefit Obligation | $965.7 | $854.0 | ||||||
Accumulated Benefit Obligation | $931.2 | $812.0 | ||||||
Fair Value of Plan Assets | $759.4 | $699.6 |
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | ||||||
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
Projected Benefit Obligation | $747.0 | $793.2 | ||||
Accumulated Benefit Obligation | $713.7 | $745.4 | ||||
Fair Value of Plan Assets | $598.0 | $628.2 |
Postretirement Health and Life Obligation and Funded Status | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Change in Benefit Obligation | ||||||||
Obligation, Beginning of Year | $149.8 | $176.0 | ||||||
Service Cost | 3.3 | 3.9 | ||||||
Interest Cost | 5.0 | 7.3 | ||||||
Actuarial Loss (a) | 19.2 | 10.5 | ||||||
Benefits Paid | (12.6) | (14.7) | ||||||
Participant Contributions | 3.2 | 3.5 | ||||||
Plan Amendments (b) | 0 | (34.6) | ||||||
Plan Curtailments | (0.3) | (2.1) | ||||||
Obligation, End of Year | $167.6 | $149.8 | ||||||
Change in Plan Assets | ||||||||
Fair Value, Beginning of Year | $173.7 | $154.3 | ||||||
Actual Return on Plan Assets | 20.9 | 29.5 | ||||||
Employer Contribution | 0.8 | 1.1 | ||||||
Participant Contributions | 3.2 | 3.5 | ||||||
Benefits Paid | (12.6) | (14.7) | ||||||
Fair Value, End of Year | $186.0 | $173.7 | ||||||
Funded Status, End of Year | $18.4 | $23.9 | ||||||
Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet Consist of: | ||||||||
Non-Current Assets | $34.2 | $37.5 | ||||||
Current Liabilities | $(0.6) | $(0.7) | ||||||
Non-Current Liabilities | $(15.2) | $(12.9) |
Postretirement Health and Life Obligation and Funded Status | ||||||
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
Change in Benefit Obligation | ||||||
Obligation, Beginning of Year | $190.1 | $173.4 | ||||
Service Cost | 4.7 | 4.4 | ||||
Interest Cost | 7.1 | 7.7 | ||||
Actuarial (Gain) Loss | (15.8 | ) | 15.5 | |||
Benefits Paid | (11.6 | ) | (12.2 | ) | ||
Participant Contributions | 3.6 | 3.1 | ||||
Plan Amendments | (2.1 | ) | (1.8 | ) | ||
Obligation, End of Year | $176.0 | $190.1 | ||||
Change in Plan Assets | ||||||
Fair Value, Beginning of Year | $171.0 | $154.3 | ||||
Actual Return on Plan Assets | (9.6 | ) | 24.5 | |||
Employer Contribution | 1.0 | 1.3 | ||||
Participant Contributions | 3.6 | 3.1 | ||||
Benefits Paid | (11.7 | ) | (12.2 | ) | ||
Fair Value, End of Year | $154.3 | $171.0 | ||||
Funded Status, End of Year | $(21.7) | $(19.1) | ||||
Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet Consist of: | ||||||
Non-Current Assets | $0.4 | $3.0 | ||||
Current Liabilities | $(1.0) | $(1.1) | ||||
Non-Current Liabilities | $(21.1) | $(21.0) |
Unrecognized Postretirement Health and Life Costs | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Net Loss | $23.0 | $16.0 | ||||||
Prior Service Credit | (28.3) | (36.3) | ||||||
Total Unrecognized Postretirement Health and Life Cost | $(5.3) | $(20.3) |
Unrecognized Postretirement Health and Life Costs | ||||
As of December 31 | 2018 | 2017 | ||
Millions | ||||
Net Loss | $25.0 | $21.1 | ||
Prior Service Credit | (4.6 | ) | (4.6 | ) |
Total Unrecognized Postretirement Health and Life Cost | $20.4 | $16.5 |
Reconciliation of Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet | ||||
As of December 31 | 2018 | 2017 | ||
Millions | ||||
Net Loss (a) | $(25.0) | $(21.1) | ||
Prior Service Credit | 4.6 | 4.6 | ||
Accumulated Net Periodic Benefit Cost in Excess of Contributions (a) | (1.3 | ) | (2.6 | ) |
Total Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet | $(21.7) | $(19.1) |
Reconciliation of Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Net Loss (a) | $(23.0) | $(16.0) | ||||||
Prior Service Credit | 28.3 | 36.3 | ||||||
Accumulated Net Periodic Benefit Cost in Excess of Contributions (a) | 13.1 | 3.6 | ||||||
Total Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet | $18.4 | $23.9 |
Components of Net Periodic Postretirement Health and Life Cost | |||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Service Cost | $4.7 | $4.4 | $3.9 | ||||||
Non-Service Cost Components (a) | |||||||||
Interest Cost | 7.1 | 7.7 | 7.4 | ||||||
Expected Return on Plan Assets | (10.9 | ) | (10.5 | ) | (11.2 | ) | |||
Amortization of Loss | 0.8 | 0.3 | 0.2 | ||||||
Amortization of Prior Service Credit | (2.1 | ) | (2.0 | ) | (2.9 | ) | |||
Net Postretirement Health and Life Credit | $(0.4) | $(0.1) | $(2.6) |
(a)These components of net periodic |
Other Changes in Postretirement Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | ||||||
Year Ended December 31 | 2018 | 2017 | ||||
Millions | ||||||
Net Loss | $4.7 | $1.6 | ||||
Prior Service Credit Arising During the Period | (2.1 | ) | (1.8 | ) | ||
Amortization of Prior Service Credit | 2.1 | 2.0 | ||||
Amortization of Loss | (0.8 | ) | (0.3 | ) | ||
Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | $3.9 | $1.5 |
Estimated Future Benefit Payments | Pension | Postretirement Health and Life | ||||
Millions | ||||||
2019 | $47.9 | $9.7 | ||||
2020 | $47.4 | $9.7 | ||||
2021 | $47.3 | $9.8 | ||||
2022 | $47.1 | $9.8 | ||||
2023 | $47.0 | $9.7 | ||||
Years 2024 – 2028 | $231.1 | $51.1 |
Other Changes in Postretirement Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | ||||||||
Year Ended December 31 | 2020 | 2019 | ||||||
Millions | ||||||||
Net (Gain) Loss | $8.1 | $(10.6) | ||||||
Prior Service Credit Arising During the Period | 0 | (34.6) | ||||||
Amortization of Prior Service Credit | 8.0 | 2.8 | ||||||
Amortization of Loss | (1.0) | (0.5) | ||||||
Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | $15.1 | $(42.9) |
Estimated Future Benefit Payments | Pension | Postretirement Health and Life | ||||||
Millions | ||||||||
2021 | $54.9 | $8.7 | ||||||
2022 | $54.5 | $8.7 | ||||||
2023 | $54.2 | $8.5 | ||||||
2024 | $54.0 | $8.5 | ||||||
2025 | $53.4 | $8.5 | ||||||
Years 2026 – 2030 | $258.0 | $43.2 |
Pension | Postretirement Health and Life | |||
Millions | ||||
Net Loss | $7.3 | $0.4 | ||
Prior Service Credit | (0.2 | ) | (1.7 | ) |
Total Pension and Postretirement Health and Life Cost (Credit) | $7.1 | $(1.3) |
Assumptions Used to Determine Benefit Obligation | ||
As of December 31 | 2018 | 2017 |
Discount Rate | ||
Pension | 4.39 - 4.53% | 3.81 - 3.96% |
Postretirement Health and Life | 4.47% | 3.86% |
Rate of Compensation Increase | 3.70 - 4.10% | 3.70 - 4.10% |
Health Care Trend Rates | ||
Trend Rate | 5.00 - 6.46% | 5.00 - 6.73% |
Ultimate Trend Rate | 4.50% | 4.50% |
Year Ultimate Trend Rate Effective | 2038 | 2038 |
Weighted Average Assumptions Used to Determine Benefit Obligation | ||||||||
As of December 31 | 2020 | 2019 | ||||||
Discount Rate | ||||||||
Pension | 2.62% | 3.38% | ||||||
Postretirement Health and Life | 2.70% | 3.45% | ||||||
Rate of Compensation Increase | 3.61% | 4.07% | ||||||
Health Care Trend Rates | ||||||||
Trend Rate | 5.81% | 6.06% | ||||||
Ultimate Trend Rate | 4.50% | 4.50% | ||||||
Year Ultimate Trend Rate Effective | 2038 | 2038 |
Assumptions Used to Determine Net Periodic Benefit Costs | |||
Year Ended December 31 | 2018 | 2017 | 2016 |
Discount Rate | 3.81 - 3.96% | 4.53 - 4.57% | 4.72 - 4.73% |
Expected Long-Term Return on Plan Assets | |||
Pension | 7.50% | 7.50% | 8.00% |
Postretirement Health and Life | 6.00 - 7.50% | 6.00 - 7.50% | 6.40 - 8.00% |
Rate of Compensation Increase | 3.70 - 4.10% | 3.70 - 4.30% | 3.70 - 4.30% |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs | |||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Discount Rate | |||||||||||
Pension | 3.52% | 4.67% | 4.05% | ||||||||
Postretirement Health and Life | 3.45% | 4.47% | 3.86% | ||||||||
Expected Long-Term Return on Plan Assets (a) | |||||||||||
Pension | 6.75% | 7.25% | 7.50% | ||||||||
Postretirement Health and Life | 6.08% | 6.51% | 6.72% | ||||||||
Rate of Compensation Increase | 4.06% | 4.04% | 4.03% |
Sensitivity of a One Percent Change in Health Care Trend Rates | ||||
One Percent Increase | One Percent Decrease | |||
Millions | ||||
Effect on Total of Postretirement Health and Life Service and Interest Cost | $2.0 | $(1.6) | ||
Effect on Postretirement Health and Life Obligation | $20.7 | $(17.2) |
Actual Plan Asset Allocations | Pension | Postretirement Health and Life (a) | ||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Equity Securities | 36% | 34% | 67% | 66% | ||||||||||
Fixed Income Securities | 61% | 62% | 32% | 33% | ||||||||||
Private Equity | 1% | 1% | 1% | 1% | ||||||||||
Real Estate | 2% | 3% | 0 | 0 | ||||||||||
100% | 100% | 100% | 100% |
Actual Plan Asset Allocations | Pension | Postretirement Health and Life (a) | ||||||
2018 | 2017 | 2018 | 2017 | |||||
Equity Securities | 32 | % | 53 | % | 62 | % | 64 | % |
Fixed Income Securities | 60 | % | 38 | % | 34 | % | 31 | % |
Private Equity | 5 | % | 5 | % | 4 | % | 5 | % |
Real Estate | 3 | % | 4 | % | — | — | ||
100 | % | 100 | % | 100 | % | 100 | % |
Plan Asset Target Allocations | Pension | Postretirement Health and Life (a) | ||||||
Equity Securities | 32 | % | 60 | % | ||||
Fixed Income Securities | 56 | % | 37 | % | ||||
Private Equity | 6 | % | 0 | |||||
Real Estate | 6 | % | 3 | % | ||||
100 | % | 100 | % |
Plan Asset Target Allocations | Pension | Postretirement Health and Life (a) | ||
Equity Securities | 32 | % | 60 | % |
Fixed Income Securities | 56 | % | 37 | % |
Private Equity | 6 | % | 3 | % |
Real Estate | 6 | % | — | |
100 | % | 100 | % |
Fair Value as of December 31, 2018 | ||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||
Millions | ||||||||||||
Assets: | ||||||||||||
Equity Securities: | ||||||||||||
U.S. Large-cap (a) | — | $59.1 | — | $59.1 | ||||||||
U.S. Mid-cap Growth (a) | — | 28.1 | — | 28.1 | ||||||||
U.S. Small-cap (a) | — | 27.2 | — | 27.2 | ||||||||
International | — | 75.8 | — | 75.8 | ||||||||
Fixed Income Securities | — | 352.9 | — | 352.9 | ||||||||
Cash and Cash Equivalents | $6.3 | — | — | 6.3 | ||||||||
Private Equity Funds | — | — | $27.8 | 27.8 | ||||||||
Real Estate | — | — | 20.8 | 20.8 | ||||||||
Total Fair Value of Assets | $6.3 | $543.1 | $48.6 | $598.0 |
Recurring Fair Value Measures | ||||||
Activity in Level 3 | Private Equity Funds | Real Estate | ||||
Millions | ||||||
Balance as of December 31, 2017 | $33.2 | $25.5 | ||||
Actual Return on Plan Assets | 2.8 | 0.7 | ||||
Purchases, Sales, and Settlements – Net | (8.2 | ) | (5.4 | ) | ||
Balance as of December 31, 2018 | $27.8 | $20.8 |
Fair Value as of December 31, 2020 | ||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Millions | ||||||||||||||
Assets: | ||||||||||||||
Equity Securities: | ||||||||||||||
U.S. Large-cap (a) | 0 | $91.7 | 0 | $91.7 | ||||||||||
U.S. Mid-cap Growth (a) | 0 | 40.0 | 0 | 40.0 | ||||||||||
U.S. Small-cap (a) | 0 | 40.7 | 0 | 40.7 | ||||||||||
International | 0 | 97.1 | 0 | 97.1 | ||||||||||
Fixed Income Securities (a) | 0 | 461.7 | 0 | 461.7 | ||||||||||
Cash and Cash Equivalents | $3.2 | 0 | 0 | 3.2 | ||||||||||
Private Equity Funds | 0 | 0 | $7.0 | 7.0 | ||||||||||
Real Estate | 0 | 0 | 18.0 | 18.0 | ||||||||||
Total Fair Value of Assets | $3.2 | $731.2 | $25.0 | $759.4 |
Recurring Fair Value Measures | ||||||||
Activity in Level 3 | Private Equity Funds | Real Estate | ||||||
Millions | ||||||||
Balance as of December 31, 2019 | $8.0 | $18.0 | ||||||
Actual Return on Plan Assets | 0.1 | 0 | ||||||
Purchases, Sales, and Settlements – Net | (1.1) | 0 | ||||||
Balance as of December 31, 2020 | $7.0 | $18.0 |
Fair Value as of December 31, 2019 | ||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Millions | ||||||||||||||
Assets: | ||||||||||||||
Equity Securities: | ||||||||||||||
U.S. Large-cap (a) | 0 | $78.5 | 0 | $78.5 | ||||||||||
U.S. Mid-cap Growth (a) | 0 | 35.9 | 0 | 35.9 | ||||||||||
U.S. Small-cap (a) | 0 | 34.6 | 0 | 34.6 | ||||||||||
International | 0 | 92.1 | 0 | 92.1 | ||||||||||
Fixed Income Securities (a) | 0 | 425.4 | 0 | 425.4 | ||||||||||
Cash and Cash Equivalents | $7.1 | 0 | 0 | 7.1 | ||||||||||
Private Equity Funds | 0 | 0 | $8.0 | 8.0 | ||||||||||
Real Estate | 0 | 0 | 18.0 | 18.0 | ||||||||||
Total Fair Value of Assets | $7.1 | $666.5 | $26.0 | $699.6 |
Fair Value as of December 31, 2017 | ||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||
Millions | ||||||||||||
Assets: | ||||||||||||
Equity Securities: | ||||||||||||
U.S. Large-cap (a) | — | $108.6 | — | $108.6 | ||||||||
U.S. Mid-cap Growth (a) | — | 51.9 | — | 51.9 | ||||||||
U.S. Small-cap (a) | — | 51.5 | — | 51.5 | ||||||||
International | — | 122.3 | — | 122.3 | ||||||||
Fixed Income Securities | — | 222.8 | — | 222.8 | ||||||||
Cash and Cash Equivalents | $12.4 | — | — | 12.4 | ||||||||
Private Equity Funds | — | — | $33.2 | 33.2 | ||||||||
Real Estate | — | — | 25.5 | 25.5 | ||||||||
Total Fair Value of Assets | $12.4 | $557.1 | $58.7 | $628.2 |
Recurring Fair Value Measures | |||||||
Activity in Level 3 | Private Equity Funds | Real Estate | |||||
Millions | |||||||
Balance as of December 31, 2016 | $40.6 | $25.6 | |||||
Actual Return on Plan Assets | 7.1 | 1.7 | |||||
Purchases, Sales, and Settlements – Net | (14.5 | ) | (1.8 | ) | |||
Balance as of December 31, 2017 | $33.2 | $25.5 |
Recurring Fair Value Measures | |||||||||||
Activity in Level 3 | Private Equity Funds | Real Estate | |||||||||
Millions | |||||||||||
Balance as of December 31, 2018 | $27.8 | $20.8 | |||||||||
Actual Return on Plan Assets | 0.4 | (1.3) | |||||||||
Purchases, Sales, and Settlements – Net | (20.2) | (1.5) | |||||||||
Balance as of December 31, 2019 | $8.0 | $18.0 |
Fair Value as of December 31, 2020 | ||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Millions | ||||||||||||||
Assets: | ||||||||||||||
Equity Securities: (a) | ||||||||||||||
U.S. Large-cap | $34.2 | 0 | 0 | $34.2 | ||||||||||
U.S. Mid-cap Growth | 31.4 | 0 | 0 | 31.4 | ||||||||||
U.S. Small-cap | 16.6 | 0 | 0 | 16.6 | ||||||||||
International | 41.5 | 0 | 0 | 41.5 | ||||||||||
Fixed Income Securities: | ||||||||||||||
Mutual Funds | 57.3 | 0 | 0 | 57.3 | ||||||||||
Debt Securities | 0 | $2.2 | 0 | 2.2 | ||||||||||
Cash and Cash Equivalents | 1.1 | 0 | 0 | 1.1 | ||||||||||
Private Equity Funds | 0 | 0 | $1.7 | 1.7 | ||||||||||
Total Fair Value of Assets | $182.1 | $2.2 | $1.7 | $186.0 |
Fair Value as of December 31, 2018 | ||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||
Millions | ||||||||||||
Assets: | ||||||||||||
Equity Securities: (a) | ||||||||||||
U.S. Large-cap | $29.1 | — | — | $29.1 | ||||||||
U.S. Mid-cap Growth | 21.2 | — | — | 21.2 | ||||||||
U.S. Small-cap | 12.9 | — | — | 12.9 | ||||||||
International | 30.4 | — | — | 30.4 | ||||||||
Fixed Income Securities: | ||||||||||||
Mutual Funds | 49.6 | — | — | 49.6 | ||||||||
Debt Securities | — | $4.0 | — | 4.0 | ||||||||
Cash and Cash Equivalents | 0.6 | — | — | 0.6 | ||||||||
Private Equity Funds | — | — | $6.5 | 6.5 | ||||||||
Total Fair Value of Assets | $143.8 | $4.0 | $6.5 | $154.3 |
Recurring Fair Value Measures | ||||||
Activity in Level 3 | Private Equity Funds | |||||
Millions | ||||||
Balance as of December 31, | $1.7 | |||||
Actual Return on Plan Assets | ||||||
Purchases, Sales, and Settlements – Net | ||||||
Balance as of December 31, | $1.7 |
Fair Value as of December 31, 2017 | ||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||
Millions | ||||||||||||
Assets: | ||||||||||||
Equity Securities: (a) | ||||||||||||
U.S. Large-cap | $32.1 | — | — | $32.1 | ||||||||
U.S. Mid-cap Growth | 24.3 | — | — | 24.3 | ||||||||
U.S. Small-cap | 15.5 | — | — | 15.5 | ||||||||
International | 35.8 | — | — | 35.8 | ||||||||
Fixed Income Securities: | ||||||||||||
Mutual Funds | 49.8 | — | — | 49.8 | ||||||||
Debt Securities | — | $4.5 | — | 4.5 | ||||||||
Cash and Cash Equivalents | 0.8 | — | — | 0.8 | ||||||||
Private Equity Funds | — | — | $8.2 | 8.2 | ||||||||
Total Fair Value of Assets | $158.3 | $4.5 | $8.2 | $171.0 |
Fair Value as of December 31, 2019 | ||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Millions | ||||||||||||||
Assets: | ||||||||||||||
Equity Securities: (a) | ||||||||||||||
U.S. Large-cap | $33.6 | 0 | 0 | $33.6 | ||||||||||
U.S. Mid-cap Growth | 27.7 | 0 | 0 | 27.7 | ||||||||||
U.S. Small-cap | 14.3 | 0 | 0 | 14.3 | ||||||||||
International | 37.8 | 0 | 0 | 37.8 | ||||||||||
Fixed Income Securities: | ||||||||||||||
Mutual Funds | 53.4 | 0 | 0 | 53.4 | ||||||||||
Debt Securities | 0 | $4.1 | 0 | 4.1 | ||||||||||
Cash and Cash Equivalents | 1.1 | 0 | 0 | 1.1 | ||||||||||
Private Equity Funds | 0 | 0 | $1.7 | 1.7 | ||||||||||
Total Fair Value of Assets | $167.9 | $4.1 | $1.7 | $173.7 |
Recurring Fair Value Measures | ||||||
Activity in Level 3 | Private Equity Funds | |||||
Millions | ||||||
Balance as of December 31, | $6.5 | |||||
Actual Return on Plan Assets | ||||||
Purchases, Sales, and Settlements – Net | ||||||
Balance as of December 31, | $1.7 |
Share-Based Compensation Expense | |||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Performance Shares | $2.2 | $2.3 | $2.3 | ||||||||
Restricted Stock Units | 0.9 | 0.8 | 0.9 | ||||||||
Total Share-Based Compensation Expense | $3.1 | $3.1 | $3.2 | ||||||||
Income Tax Benefit | $0.9 | $0.9 | $0.9 |
Share-Based Compensation Expense | |||||||||
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Performance Shares | $2.3 | $2.1 | $1.8 | ||||||
Restricted Stock Units | 0.9 | 1.0 | 0.8 | ||||||
Total Share-Based Compensation Expense | $3.2 | $3.1 | $2.6 | ||||||
Income Tax Benefit | $0.9 | $0.9 | $1.1 |
2020 | 2019 | 2018 | ||||||||||||||||||
Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | |||||||||||||||
Non-vested as of January 1 | 99,585 | $72.78 | 129,693 | $66.12 | 127,898 | $58.23 | ||||||||||||||
Granted (a) | 25,763 | $83.17 | 60,747 | $63.89 | 66,557 | $76.42 | ||||||||||||||
Awarded | (25,304) | $62.03 | (75,943) | $53.44 | (58,293) | $59.82 | ||||||||||||||
Unearned Grant Award | (13,625) | $62.03 | 0 | 0 | 0 | 0 | ||||||||||||||
Forfeited | (1,135) | $79.81 | (14,912) | $77.14 | (6,469) | $72.99 | ||||||||||||||
Non-vested as of December 31 | 85,284 | $80.73 | 99,585 | $72.78 | 129,693 | $66.12 |
2018 | 2017 | 2016 | |||||||||||||
Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | ||||||||||
Non-vested as of January 1 | 127,898 | $58.23 | 127,580 | $52.56 | 119,540 | $52.72 | |||||||||
Granted (a) | 66,557 | $76.42 | 50,729 | $62.90 | 57,189 | $52.43 | |||||||||
Awarded | (58,293 | ) | $59.82 | — | — | — | — | ||||||||
Unearned Grant Award | — | — | (40,801 | ) | $46.27 | (42,126 | ) | $52.70 | |||||||
Forfeited | (6,469 | ) | $72.99 | (9,610 | ) | $58.29 | (7,023 | ) | $53.45 | ||||||
Non-vested as of December 31 | 129,693 | $66.12 | 127,898 | $58.23 | 127,580 | $52.56 |
2018 | 2017 | 2016 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||||||||
Available as of January 1 | 55,248 | $56.18 | 54,728 | $51.79 | 57,694 | $49.86 | Available as of January 1 | 39,943 | $69.30 | 49,771 | $60.74 | 55,248 | $56.18 | ||||||||||||||||||||||
Granted (a) | 16,573 | $71.11 | 21,241 | $62.20 | 20,351 | $50.25 | Granted (a) | 15,169 | $83.48 | 13,927 | $74.93 | 16,573 | $71.11 | ||||||||||||||||||||||
Awarded | (18,881 | ) | $55.78 | (17,281 | ) | $49.72 | (19,661 | ) | $44.33 | Awarded | (17,193) | $63.41 | (21,110) | $52.44 | (18,881) | $55.78 | |||||||||||||||||||
Forfeited | (3,169 | ) | $64.92 | (3,440 | ) | $56.00 | (3,656 | ) | $52.87 | Forfeited | (437) | $77.52 | (2,645) | $72.43 | (3,169) | $64.92 | |||||||||||||||||||
Available as of December 31 | 49,771 | $60.74 | 55,248 | $56.18 | 54,728 | $51.79 | Available as of December 31 | 37,482 | $77.64 | 39,943 | $69.30 | 49,771 | $60.74 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Operating Revenue | |||||||||||
Residential | $140.7 | $139.6 | $139.7 | ||||||||
Commercial | 139.5 | 145.7 | 147.9 | ||||||||
Municipal | 41.2 | 48.6 | 54.9 | ||||||||
Industrial | 432.8 | 476.4 | 469.5 | ||||||||
Other Power Suppliers | 138.8 | 153.7 | 170.3 | ||||||||
CIP Financial Incentive (a) | 2.4 | 2.8 | 3.0 | ||||||||
Other | 91.9 | 75.6 | 74.2 | ||||||||
Total Regulated Operations | 987.3 | 1,042.4 | 1,059.5 | ||||||||
ALLETE Clean Energy | |||||||||||
Long-term PSA | 68.3 | 48.0 | 55.2 | ||||||||
Sale of Wind Energy Facility | 0 | 0 | 81.1 | ||||||||
Other | 11.3 | 11.6 | 23.6 | ||||||||
Total ALLETE Clean Energy | 79.6 | 59.6 | 159.9 | ||||||||
U.S. Water Services (b) | |||||||||||
Point-in-time | 0 | 19.0 | 100.3 | ||||||||
Contract | 0 | 9.2 | 38.3 | ||||||||
Capital Project | 0 | 5.2 | 33.5 | ||||||||
Total U.S. Water Services | 0 | 33.4 | 172.1 | ||||||||
Corporate and Other | |||||||||||
Long-term Contract | 86.0 | 82.8 | 85.5 | ||||||||
Other | 16.2 | 22.3 | 21.6 | ||||||||
Total Corporate and Other | 102.2 | 105.1 | 107.1 | ||||||||
Total Operating Revenue | $1,169.1 | $1,240.5 | $1,498.6 | ||||||||
Net Income (Loss) Attributable to ALLETE (c) | |||||||||||
Regulated Operations | $136.3 | $154.4 | $131.0 | ||||||||
ALLETE Clean Energy (d) | 29.9 | 12.4 | 33.7 | ||||||||
U.S. Water Services | 0 | (1.1) | 3.2 | ||||||||
Corporate and Other (b) | 8.0 | 19.9 | 6.2 | ||||||||
Total Net Income Attributable to ALLETE | $174.2 | $185.6 | $174.1 |
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Operating Revenue (a) | |||||||||
Residential | $139.7 | $127.4 | $127.9 | ||||||
Commercial | 147.9 | 139.8 | 139.5 | ||||||
Municipal | 54.9 | 57.9 | 67.6 | ||||||
Industrial | 469.5 | 470.5 | 416.0 | ||||||
Other Power Suppliers | 170.3 | 161.8 | 175.1 | ||||||
CIP Financial Incentive | 3.0 | 5.5 | 7.5 | ||||||
Other | 74.2 | 100.9 | 67.1 | ||||||
Total Regulated Operations | 1,059.5 | 1,063.8 | 1,000.7 | ||||||
Energy Infrastructure and Related Services | |||||||||
ALLETE Clean Energy | |||||||||
Long-term PSA | 55.2 | 56.9 | 58.2 | ||||||
Sale of Wind Energy Facility | 81.1 | — | — | ||||||
Other | 23.6 | 23.6 | 22.3 | ||||||
Total ALLETE Clean Energy | 159.9 | 80.5 | 80.5 | ||||||
U.S. Water Services | |||||||||
Point-in-time | 100.3 | 95.8 | 93.9 | ||||||
Contract | 38.3 | 36.2 | 30.4 | ||||||
Capital Project | 33.5 | 19.8 | 13.2 | ||||||
Total U.S. Water Services | 172.1 | 151.8 | 137.5 | ||||||
Corporate and Other | |||||||||
Long-term Contract | 85.5 | 89.3 | 73.7 | ||||||
Other | 21.6 | 33.9 | 47.3 | ||||||
Total Corporate and Other | 107.1 | 123.2 | 121.0 | ||||||
Total Operating Revenue | $1,498.6 | $1,419.3 | $1,339.7 | ||||||
Net Income (Loss) Attributable to ALLETE (b)(c) | |||||||||
Regulated Operations | $131.0 | $128.4 | $135.5 | ||||||
Energy Infrastructure and Related Services | |||||||||
ALLETE Clean Energy (d) | 33.7 | 41.5 | 13.4 | ||||||
U.S. Water Services | 3.2 | 10.7 | 1.5 | ||||||
Corporate and Other (e) | 6.2 | (8.4 | ) | 4.9 | |||||
Total Net Income Attributable to ALLETE | $174.1 | $172.2 | $155.3 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Millions | |||||||||||
Depreciation and Amortization | |||||||||||
Regulated Operations | $166.9 | $159.4 | $158.0 | ||||||||
ALLETE Clean Energy | 37.9 | 26.8 | 24.4 | ||||||||
U.S. Water Services | 0 | 2.3 | 10.2 | ||||||||
Corporate and Other | 13.0 | 13.5 | 13.0 | ||||||||
Total Depreciation and Amortization | $217.8 | $202.0 | $205.6 | ||||||||
Operating Expenses – Other (a) | |||||||||||
Corporate and Other | 0 | 0 | $(2.0) | ||||||||
Interest Expense (b) | |||||||||||
Regulated Operations | $58.5 | $58.9 | $60.2 | ||||||||
ALLETE Clean Energy | 2.2 | 2.8 | 3.6 | ||||||||
U.S. Water Services | 0 | 0.2 | 1.5 | ||||||||
Corporate and Other | 13.2 | 8.0 | 7.3 | ||||||||
Eliminations | (8.3) | (5.0) | (4.7) | ||||||||
Total Interest Expense | $65.6 | $64.9 | $67.9 | ||||||||
Equity Earnings | |||||||||||
Regulated Operations | $22.3 | $21.7 | $17.5 | ||||||||
Corporate and Other | (0.2) | 0 | 0 | ||||||||
Total Equity Earnings | $22.1 | $21.7 | $17.5 | ||||||||
Income Tax Expense (Benefit) | |||||||||||
Regulated Operations | $(19.4) | $(7.1) | $(15.5) | ||||||||
ALLETE Clean Energy | (19.1) | (11.9) | (1.0) | ||||||||
U.S. Water Services | 0 | (0.4) | 1.0 | ||||||||
Corporate and Other (c) | (1.0) | 12.8 | 0 | ||||||||
Total Income Tax Benefit | $(39.5) | $(6.6) | $(15.5) |
As of December 31 | 2020 | 2019 | |||||||||
Millions | |||||||||||
Assets | |||||||||||
Regulated Operations | $4,196.8 | $4,130.8 | |||||||||
ALLETE Clean Energy | 1,483.3 | 1,001.5 | |||||||||
Corporate and Other | 404.5 | 350.5 | |||||||||
Total Assets | $6,084.6 | $5,482.8 | |||||||||
Capital Expenditures | |||||||||||
Regulated Operations | $133.7 | $230.9 | |||||||||
ALLETE Clean Energy | 507.8 | 385.6 | |||||||||
Corporate and Other | 15.7 | 10.1 | |||||||||
Total Capital Expenditures | $657.2 | $626.6 |
Year Ended December 31 | 2018 | 2017 | 2016 | ||||||
Millions | |||||||||
Depreciation and Amortization | |||||||||
Regulated Operations | $158.0 | $132.6 | $154.3 | ||||||
Energy Infrastructure and Related Services | |||||||||
ALLETE Clean Energy | 24.4 | 23.4 | 22.3 | ||||||
U.S. Water Services | 10.2 | 9.8 | 8.9 | ||||||
Corporate and Other | 13.0 | 11.7 | 10.3 | ||||||
Total Depreciation and Amortization | $205.6 | $177.5 | $195.8 | ||||||
Operating Expenses – Other (a) | |||||||||
ALLETE Clean Energy | — | — | $3.3 | ||||||
Corporate and Other | $(2.0) | $(0.7) | (13.6 | ) | |||||
Total Operating Expenses – Other | $(2.0) | $(0.7) | $(10.3) | ||||||
Interest Expense (b) | |||||||||
Regulated Operations | $60.2 | $57.0 | $52.1 | ||||||
Energy Infrastructure and Related Services | |||||||||
ALLETE Clean Energy | 3.6 | 4.2 | 5.8 | ||||||
U.S. Water Services | 1.5 | 1.6 | 1.7 | ||||||
Corporate and Other | 7.3 | 10.3 | 14.5 | ||||||
Eliminations | (4.7 | ) | (5.3 | ) | (3.8 | ) | |||
Total Interest Expense | $67.9 | $67.8 | $70.3 | ||||||
Equity Earnings in ATC | |||||||||
Regulated Operations | $17.5 | $22.5 | $18.5 | ||||||
Income Tax Expense (Benefit) (c) | |||||||||
Regulated Operations (d) | $(15.5) | $27.2 | $5.9 | ||||||
Energy Infrastructure and Related Services | |||||||||
ALLETE Clean Energy | (1.0 | ) | (14.2 | ) | 8.1 | ||||
U.S. Water Services | 1.0 | (7.8 | ) | 1.4 | |||||
Corporate and Other (d) | — | 9.5 | 4.4 | ||||||
Total Income Tax Expense (Benefit) | $(15.5) | $14.7 | $19.8 |
As of December 31 | 2018 | 2017 | ||||
Millions | ||||||
Assets | ||||||
Regulated Operations | $3,952.5 | $3,886.6 | ||||
Energy Infrastructure and Related Services | ||||||
ALLETE Clean Energy | 606.6 | 600.5 | ||||
U.S. Water Services | 295.8 | 292.4 | ||||
Corporate and Other | 310.1 | 300.5 | ||||
Total Assets | $5,165.0 | $5,080.0 | ||||
Capital Expenditures | ||||||
Regulated Operations | $211.9 | $177.1 | ||||
Energy Infrastructure and Related Services | ||||||
ALLETE Clean Energy | 89.7 | 56.1 | ||||
U.S. Water Services | 5.0 | 4.4 | ||||
Corporate and Other | 12.0 | 28.9 | ||||
Total Capital Expenditures | $318.6 | $266.5 |
Quarter Ended | Mar. 31 | Jun. 30 | Sept. 30 | Dec. 31 | ||||||||||
Millions Except Earnings Per Share | ||||||||||||||
2020 | ||||||||||||||
Operating Revenue | $311.6 | $243.2 | $293.9 | $320.4 | ||||||||||
Operating Income | $60.2 | $12.7 | $41.6 | $36.4 | ||||||||||
Net Income Attributable to ALLETE | $66.3 | $20.1 | $40.7 | $47.1 | ||||||||||
Earnings Per Share of Common Stock | ||||||||||||||
Basic | $1.28 | $0.39 | $0.78 | $0.91 | ||||||||||
Diluted | $1.28 | $0.39 | $0.78 | $0.90 | ||||||||||
2019 | ||||||||||||||
Operating Revenue | $357.2 | $290.4 | $288.3 | $304.6 | ||||||||||
Operating Income | $56.8 | $36.2 | $37.0 | $49.8 | ||||||||||
Net Income Attributable to ALLETE | $70.5 | $34.2 | $31.2 | $49.7 | ||||||||||
Earnings Per Share of Common Stock | ||||||||||||||
Basic | $1.37 | $0.66 | $0.60 | $0.96 | ||||||||||
Diluted | $1.37 | $0.66 | $0.60 | $0.96 | ||||||||||
2018 | ||||||||||||||
Operating Revenue | $358.2 | $344.1 | $348.0 | $448.3 | ||||||||||
Operating Income | $57.4 | $36.5 | $43.3 | $64.0 | ||||||||||
Net Income Attributable to ALLETE | $51.0 | $31.3 | $30.7 | $61.1 | ||||||||||
Earnings Per Share of Common Stock | ||||||||||||||
Basic | $1.00 | $0.61 | $0.59 | $1.19 | ||||||||||
Diluted | $0.99 | $0.61 | $0.59 | $1.18 |
Quarter Ended | Mar. 31 | Jun. 30 | Sept. 30 | Dec. 31 | ||||||||
Millions Except Earnings Per Share | ||||||||||||
2018 | ||||||||||||
Operating Revenue | $358.2 | $344.1 | $348.0 | $448.3 | ||||||||
Operating Income | $57.4 | $36.5 | $43.3 | $64.0 | ||||||||
Net Income Attributable to ALLETE | $51.0 | $31.3 | $30.7 | $61.1 | ||||||||
Earnings Per Share of Common Stock | ||||||||||||
Basic | $1.00 | $0.61 | $0.59 | $1.19 | ||||||||
Diluted | $0.99 | $0.61 | $0.59 | $1.18 | ||||||||
2017 | ||||||||||||
Operating Revenue | $365.6 | $353.3 | $362.5 | $337.9 | ||||||||
Operating Income | $71.6 | $54.0 | $68.0 | $32.3 | ||||||||
Net Income Attributable to ALLETE | $49.0 | $36.9 | $44.9 | $41.4 | ||||||||
Earnings Per Share of Common Stock | ||||||||||||
Basic | $0.97 | $0.73 | $0.88 | $0.81 | ||||||||
Diluted | $0.97 | $0.72 | $0.88 | $0.81 | ||||||||
2016 | ||||||||||||
Operating Revenue | $333.8 | $314.8 | $349.6 | $341.5 | ||||||||
Operating Income | $65.2 | $40.6 | $51.8 | $59.4 | ||||||||
Net Income Attributable to ALLETE | $45.9 | $24.8 | $40.3 | $44.3 | ||||||||
Earnings Per Share of Common Stock | ||||||||||||
Basic | $0.93 | $0.50 | $0.82 | $0.89 | ||||||||
Diluted | $0.93 | $0.50 | $0.81 | $0.89 |
Balance at Beginning of Period | Additions | Deductions from Reserves (a) | Balance at End of Period | ||||||||||||||
Charged to Income | Other Charges | ||||||||||||||||
Millions | |||||||||||||||||
Reserve Deducted from Related Assets | |||||||||||||||||
Reserve For Uncollectible Accounts | |||||||||||||||||
2018 Trade Accounts Receivable | $2.1 | $0.9 | 0 | $1.3 | $1.7 | ||||||||||||
Finance Receivables – Long-Term | 0 | 0 | 0 | 0 | 0 | ||||||||||||
2019 Trade Accounts Receivable | $1.7 | $(0.1) | 0 | $0.7 | $0.9 | ||||||||||||
Finance Receivables – Long-Term | 0 | 0 | 0 | 0 | 0 | ||||||||||||
2020 Trade Accounts Receivable | $0.9 | $2.7 | 0 | $1.1 | $2.5 | ||||||||||||
Finance Receivables – Long-Term | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Deferred Asset Valuation Allowance | |||||||||||||||||
2018 Deferred Tax Assets | $60.0 | $6.5 | 0 | 0 | $66.5 | ||||||||||||
2019 Deferred Tax Assets | $66.5 | $3.5 | 0 | 0 | $70.0 | ||||||||||||
2020 Deferred Tax Assets | $70.0 | $(0.1) | 0 | 0 | $69.9 |
Balance at Beginning of Period | Additions | Deductions from Reserves (a) | Balance at End of Period | |||||||||||
Charged to Income | Other Charges | |||||||||||||
Millions | ||||||||||||||
Reserve Deducted from Related Assets | ||||||||||||||
Reserve For Uncollectible Accounts | ||||||||||||||
2016 Trade Accounts Receivable | $1.0 | $4.1 | — | $2.0 | $3.1 | |||||||||
Finance Receivables – Long-Term | $0.6 | — | — | $0.6 | — | |||||||||
2017 Trade Accounts Receivable | $3.1 | $0.8 | — | $1.8 | $2.1 | |||||||||
Finance Receivables – Long-Term | — | — | — | — | — | |||||||||
2018 Trade Accounts Receivable | $2.1 | $0.9 | — | $1.3 | $1.7 | |||||||||
Finance Receivables – Long-Term | — | — | — | — | — | |||||||||
Deferred Asset Valuation Allowance | ||||||||||||||
2016 Deferred Tax Assets | $31.6 | $11.4 | — | — | $43.0 | |||||||||
2017 Deferred Tax Assets | $43.0 | $17.0 | — | — | $60.0 | |||||||||
2018 Deferred Tax Assets | $60.0 | $6.5 | — | — | $66.5 |
(a) Includes uncollectible accounts written-off. |