Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 01, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | ALLETE INC | ||
Entity Central Index Key | 66,756 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,256,186,129 | ||
Entity Common Stock, Shares Outstanding | 49,111,849 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and Cash Equivalents | $ 97 | $ 145.8 |
Accounts Receivable (Less Allowance of $1.0 and $1.1) | 121.2 | 103 |
Inventories | 117.1 | 80.5 |
Prepayments and Other | 35.7 | 82 |
Deferred Income Taxes | 0 | 7.5 |
Total Current Assets | 371 | 418.8 |
Property, Plant and Equipment – Net | 3,669.1 | 3,284.8 |
Regulatory Assets | 372 | 357.3 |
Investment in ATC | 124.5 | 121.1 |
Other Investments | 74.6 | 114.4 |
Goodwill and Intangible Assets – Net | 215.2 | 4.8 |
Other Non-Current Assets | 80.7 | 59.6 |
Total Assets | 4,907.1 | 4,360.8 |
Current Liabilities [Abstract] | ||
Accounts Payable | 88.8 | 134.1 |
Accrued Taxes | 44 | 38.7 |
Accrued Interest | 18.6 | 18 |
Long-Term Debt Due Within One Year | 36.3 | 100.7 |
Notes Payable | 1.6 | 3.7 |
Other | 86.1 | 120.8 |
Total Current Liabilities | 275.4 | 416 |
Long-Term Debt | 1,568.7 | 1,272.8 |
Deferred Income Taxes | 579.8 | 510.7 |
Regulatory Liabilities | 105 | 94.2 |
Defined Benefit Pension and Other Postretirement Benefit Plans | 206.8 | 190.9 |
Other Non-Current Liabilities | 349 | 265 |
Total Liabilities | $ 3,084.7 | $ 2,749.6 |
Commitments, Guarantees and Contingencies (Note 12) | ||
ALLETE's Equity [Abstract] | ||
Common Stock Without Par Value, 80.0 Shares Authorized, 49.1 and 45.9 Shares Outstanding | $ 1,271.4 | $ 1,107.6 |
Unearned ESOP Shares | 0 | (7.2) |
Accumulated Other Comprehensive Loss | (24.5) | (21.1) |
Retained Earnings | 573.3 | 530.1 |
Total ALLETE Equity | 1,820.2 | 1,609.4 |
Non-Controlling Interest in Subsidiaries | 2.2 | 1.8 |
Total Equity | 1,822.4 | 1,611.2 |
Total Liabilities and Equity | $ 4,907.1 | $ 4,360.8 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals - USD ($) shares in Millions, $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable [Abstract] | ||
Accounts Receivable, Allowance | $ 1 | $ 1.1 |
Common Stock [Abstract] | ||
Common Stock, Par Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 80 | 80 |
Common Stock, Shares Outstanding | 49.1 | 45.9 |
Consilidated Statement of Incom
Consilidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Operating Revenue | $ 1,486.4 | $ 1,136.8 | $ 1,018.4 |
Operating Expenses [Abstract] | |||
Fuel and Purchased Power | 328.1 | 356.1 | 334.8 |
Transmission Services | 54.1 | 45.6 | 32.3 |
Cost of Sales | 302.3 | 77.9 | 71.2 |
Operating and Maintenance | 333.5 | 287.1 | 267.7 |
Depreciation and Amortization | 170 | 135.7 | 116.6 |
Taxes Other Than Income Taxes | 51.4 | 45.6 | 41.7 |
Impairment of Real Estate | 36.3 | 0 | 0 |
Total Operating Expenses | 1,275.7 | 948 | 864.3 |
Operating Income | 210.7 | 188.8 | 154.1 |
Other Income (Expense) [Abstract] | |||
Interest Expense | (64.9) | (54.8) | (50.3) |
Equity Earnings in ATC | 16.3 | 19.6 | 20.3 |
Other | 4.7 | 8.6 | 9.3 |
Total Other Expense | (43.9) | (26.6) | (20.7) |
Income Before Non-Controlling Interest and Income Taxes | 166.8 | 162.2 | 133.4 |
Income Tax Expense | 25.3 | 36.7 | 28.7 |
Net Income | 141.5 | 125.5 | 104.7 |
Less: Non-Controlling Interest in Subsidiaries | 0.4 | 0.7 | 0 |
Net Income Attributable to ALLETE | $ 141.1 | $ 124.8 | $ 104.7 |
Average Shares of Common Stock and Per Share Data [Abstract] | |||
Basic (Shares) | 48.3 | 42.9 | 39.7 |
Diluted (Shares) | 48.4 | 43.1 | 39.8 |
Basic Earnings Per Share of Common Stock | $ 2.92 | $ 2.91 | $ 2.64 |
Diluted Earnings Per Share of Common Stock | 2.92 | 2.90 | 2.63 |
Dividends Per Share of Common Stock | $ 2.02 | $ 1.96 | $ 1.90 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 141.5 | $ 125.5 | $ 104.7 |
Other Comprehensive Income (Loss) [Abstract] | |||
Unrealized Loss on Securities - Net of Income Taxes of $(0.3), $(0.2) and $– | (0.5) | (0.2) | 0 |
Unrealized Gain on Derivatives - Net of Income Taxes of $0.1, $0.1 and $– | 0.1 | 0.2 | 0.1 |
Defined Benefit Pension and Other Postretirement Benefit Plans - Net of Income Taxes of $(2.2), $(2.8) and $3.3 | (3) | (4) | 4.8 |
Total Other Comprehensive Income (Loss) | (3.4) | (4) | 4.9 |
Total Comprehensive Income | 138.1 | 121.5 | 109.6 |
Less: Non-Controlling Interest in Subsidiaries | 0.4 | 0.7 | 0 |
Comprehensive Income Attributable to ALLETE | $ 137.7 | $ 120.8 | $ 109.6 |
Consolidated Statement of Comp6
Consolidated Statement of Comprehensive Income Parentheticals - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized Loss on Securities, Taxes | $ (0.3) | $ (0.2) | $ 0 |
Unrealized Gain on Derivatives, Taxes | 0.1 | 0.1 | 0 |
Defined Benefit Pension and Other Postretirement Benefit Plans, Taxes | $ (2.2) | $ (2.8) | $ 3.3 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net Income | $ 141.5 | $ 125.5 | $ 104.7 |
Allowance for Funds Used During Construction – Equity | (3.3) | (7.8) | (4.6) |
Income from Equity Investments – Net of Dividends | (1.8) | (2.6) | (4.2) |
Impairment of Real Estate | 36.3 | 0 | 0 |
Gain on Sales of Investments and Property, Plant and Equipment | (0.2) | (0.2) | (2.6) |
Depreciation Expense | 165.9 | 135.7 | 116.6 |
Amortization of Power Purchase Agreements | (23.2) | (12.7) | 0 |
Amortization of Other Intangible Assets and Other Assets | 5.6 | 0.7 | 1 |
Deferred Income Tax Expense | 25.1 | 32.7 | 28.6 |
Share-Based Compensation Expense | 2.6 | 2.3 | 2.4 |
ESOP Compensation Expense | 9 | 9.1 | 8.4 |
Defined Benefit Pension and Other Postretirement Benefit Expense | 15.4 | 12.8 | 21 |
Bad Debt Expense | 1.6 | 1.8 | 1.3 |
Changes in Operating Assets and Liabilities | |||
Accounts Receivable | 1.1 | (3.5) | (8.6) |
Inventories | (22.1) | (17.5) | 10.5 |
Prepayments and Other | 3.7 | 4.8 | (1.4) |
Accounts Payable | (19.3) | 10.9 | 1.1 |
Other Current Liabilities | 5.1 | (3.5) | 1.4 |
Cash Contributions to Defined Benefit Pension and Other Postretirement Plans | 0 | 0 | (10.8) |
Changes in Regulatory and Other Non-Current Assets | 0.6 | (21.3) | (18.3) |
Changes in Regulatory and Other Non-Current Liabilities | (3.5) | 2.6 | (7.1) |
Cash from Operating Activities | 340.1 | 269.8 | 239.4 |
Investing Activities | |||
Proceeds from Sale of Available-for-sale Securities | 1.7 | 3.6 | 16.1 |
Payments for Purchase of Available-for-sale Securities | (2.3) | (5) | (4.7) |
Acquisitions of Subsidiaries – Net of Cash Acquired | (333.3) | (60.3) | 0 |
Investment in ATC | (1.6) | (3.9) | (3.1) |
Changes to Other Investments | 3.1 | 33 | (12.3) |
Additions to Property, Plant and Equipment | (286.8) | (572.8) | (328.5) |
Construction Costs for Development Project | 0 | (25.7) | 0 |
Cash in Escrow for Acquisition | 0 | 5.4 | (5.4) |
Proceeds from Sale of Property, Plant and Equipment | 0.4 | 0 | 1.3 |
Cash for Investing Activities | (618.8) | (625.7) | (336.6) |
Financing Activities | |||
Proceeds from Issuance of Common Stock | 161.2 | 200.6 | 98.2 |
Proceeds from Issuance of Long-Term Debt | 324.5 | 375 | 169.8 |
Changes in Restricted Cash | 8.5 | (1.8) | 0 |
Changes in Notes Payable | (2.1) | 3.7 | 0 |
Reductions of Long-Term Debt | (160.2) | (134.5) | (77.7) |
Acquisition of Non-Controlling Interest | 0 | (6) | 0 |
Construction Deposits Received for Development Project | 0 | 54.3 | 0 |
Debt Issuance Costs | (4.1) | (3.1) | (1.4) |
Dividends on Common Stock | (97.9) | (83.8) | (75.2) |
Cash from Financing Activities | 229.9 | 404.4 | 113.7 |
Change in Cash and Cash Equivalents | (48.8) | 48.5 | 16.5 |
Cash and Cash Equivalents at Beginning of Period | 145.8 | 97.3 | 80.8 |
Cash and Cash Equivalents at End of Period | $ 97 | $ 145.8 | $ 97.3 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned ESOP Shares [Member] | Common Stock [Member] |
Beginning Balance at Dec. 31, 2012 | $ 1,201 | $ 459.6 | $ (22) | $ (21.3) | $ 784.7 |
Comprehensive Income | |||||
Net Income | 104.7 | 104.7 | |||
Other Comprehensive Income – Net of Tax | |||||
Unrealized Loss on Securities – Net | 0 | ||||
Unrealized Gain on Derivatives – Net | 0.1 | 0.1 | |||
Defined Benefit Pension and Other Postretirement Plans – Net | 4.8 | 4.8 | |||
Total Comprehensive Income | 109.6 | ||||
Non-Controlling Interest in Subsidiaries | 0 | ||||
Comprehensive Income Attributable to ALLETE | 109.6 | ||||
Common Stock Issued – Net | 100.5 | 100.5 | |||
Dividends Declared | (75.2) | (75.2) | |||
ESOP Shares Earned | 7 | 7 | |||
Ending Balance at Dec. 31, 2013 | 1,342.9 | 489.1 | (17.1) | (14.3) | 885.2 |
Comprehensive Income | |||||
Net Income | 125.5 | 125.5 | |||
Other Comprehensive Income – Net of Tax | |||||
Unrealized Loss on Securities – Net | (0.2) | (0.2) | |||
Unrealized Gain on Derivatives – Net | 0.2 | 0.2 | |||
Defined Benefit Pension and Other Postretirement Plans – Net | (4) | (4) | |||
Total Comprehensive Income | 121.5 | ||||
Non-Controlling Interest in Subsidiaries | (0.7) | (0.7) | |||
Comprehensive Income Attributable to ALLETE | 120.8 | ||||
Common Stock Issued – Net | 222.4 | 222.4 | |||
Dividends Declared | (83.8) | (83.8) | |||
ESOP Shares Earned | 7.1 | 7.1 | |||
Ending Balance at Dec. 31, 2014 | 1,609.4 | 530.1 | (21.1) | (7.2) | 1,107.6 |
Comprehensive Income | |||||
Net Income | 141.5 | 141.5 | |||
Other Comprehensive Income – Net of Tax | |||||
Unrealized Loss on Securities – Net | (0.5) | (0.5) | |||
Unrealized Gain on Derivatives – Net | 0.1 | 0.1 | |||
Defined Benefit Pension and Other Postretirement Plans – Net | (3) | (3) | |||
Total Comprehensive Income | 138.1 | ||||
Non-Controlling Interest in Subsidiaries | (0.4) | (0.4) | |||
Comprehensive Income Attributable to ALLETE | 137.7 | ||||
Common Stock Issued – Net | 163.8 | 163.8 | |||
Dividends Declared | (97.9) | (97.9) | |||
ESOP Shares Earned | 7.2 | 7.2 | |||
Ending Balance at Dec. 31, 2015 | $ 1,820.2 | $ 573.3 | $ (24.5) | $ 0 | $ 1,271.4 |
Operations and Significant Acco
Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Significant Accounting Policies [Text Block] | OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Financial Statement Preparation. References in this report to “we,” “us,” and “our” are to ALLETE and its subsidiaries, collectively. We prepare our financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make informed judgments, best estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. Subsequent Events. The Company performed an evaluation of subsequent events for potential recognition and disclosure through the time of the financial statements issuance. Principles of Consolidation. Our Consolidated Financial Statements include the accounts of ALLETE and all of our majority-owned subsidiary companies. All material intercompany balances and transactions have been eliminated in consolidation. Reclassifications. As a result of recent acquisitions, certain financial statement captions have been added and we have reclassified certain prior-period amounts on our Consolidated Balance Sheet and Consolidated Statement of Income to conform to the presentation for the current period. Consolidated Balance Sheet. In conformity with the current presentation of Goodwill and Intangible Assets - Net on the Consolidated Balance Sheet, we have reclassified our December 31, 2014 , Consolidated Balance Sheet to include $1.6 million and $3.2 million of goodwill and intangible assets previously disclosed in Property, Plant and Equipment - Net and Other Non-Current Assets, respectively, under Goodwill and Intangible Assets - Net. There was no impact to Total Assets as a result of the reclassification. Consolidated Statement of Income. In conformity with the current presentation of Cost of Sales on the Consolidated Statement of Income, we have reclassified $77.9 million from Operating and Maintenance expenses to Cost of Sales for the year ended December 31, 2014 , and $71.2 million for the year ended December 31, 2013 . Cost of Sales includes purchased gas at SWL&P, expenses incurred to deliver coal at BNI Energy, and the cost of land and other sales at ALLETE Properties. Cost of Sales also includes costs associated with the manufacture and delivery of inventories at U.S. Water Services which was acquired on February 10, 2015, and ALLETE Clean Energy’s cost to construct a wind energy facility that was sold to Montana-Dakota Utilities in 2015. (See Note 7. Acquisitions.) In addition to the presentation of Cost of Sales, we have created new captions on the Consolidated Statement of Income to provide additional detail for Transmission Services and Taxes Other than Income Taxes. Transmission Services are MISO-related costs incurred for the transmission of electricity. In conformity with the current presentation, we have reclassified from Operating and Maintenance expenses $45.6 million of Transmission Services and $45.6 million of Taxes Other than Income Taxes for the year ended December 31, 2014 , and $32.3 million of Transmission Services and $41.7 million of Taxes Other than Income Taxes for the year ended December 31, 2013 . There was no impact to Operating Income, Net Income, or Net Income Attributable to ALLETE as a result of these reclassifications. Business Segments. During the year ended December 31, 2015, management updated our reportable segment presentation to reflect the manner in which we operate, assess, and allocate resources after our recent acquisitions. We now present three reportable segments, Regulated Operations, ALLETE Clean Energy, and U.S. Water Services. Our segments were determined in accordance with the guidance on segment reporting. We measure performance of our operations through budgeting and monitoring of contributions to consolidated net income by each business segment. Regulated Operations includes our regulated utilities, Minnesota Power and SWL&P, as well as our investment in ATC, a Wisconsin-based regulated utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. Minnesota Power provides regulated utility electric service in northeastern Minnesota to approximately 145,000 retail customers. Minnesota Power also has 16 non-affiliated municipal customers in Minnesota. SWL&P is a Wisconsin utility and a wholesale customer of Minnesota Power. SWL&P provides regulated electric, natural gas and water service in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers and 10,000 water customers. Our regulated utility operations include retail and wholesale activities under the jurisdiction of state and federal regulatory authorities . ALLETE Clean Energy was established in 2011, and focuses on developing, acquiring and operating clean and renewable energy projects. ALLETE Clean Energy currently owns and operates, in four states, approximately 535 MW of nameplate capacity wind energy generation that are under long-term power sales agreements. In addition, ALLETE Clean Energy constructed a 107 MW wind energy facility for sale to Montana-Dakota Utilities; construction and sale were completed in 2015. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) U.S. Water Services is our integrated water management company which was acquired on February 10, 2015. Corporate and Other is comprised of BNI Energy, ALLETE Properties, other business development and corporate expenditures, unallocated interest expense, a small amount of non-rate base generation, approximately 5,000 acres of land in Minnesota, and earnings on cash and investments. BNI Energy, a wholly-owned subsidiary, mines and sells lignite coal to two North Dakota mine-mouth generating units, one of which is Square Butte. In 2015 , Square Butte supplied 50 percent ( 227.5 MW) of its output to Minnesota Power under long-term contracts. (See Note 12. Commitments, Guarantees and Contingencies.) ALLETE Properties represents our legacy Florida real estate investment. Our strategy for the assets had been to complete and maintain key entitlements and infrastructure improvements without requiring significant additional investment, sell the portfolio when opportunities arise and reinvest the proceeds in our growth initiatives. During the fourth quarter of 2015 the Company reevaluated its strategy related to the real estate assets of ALLETE Properties. The revised strategy incorporates the possibility of a bulk sale of its entire portfolio which, if consummated, is likely to result in sales proceeds below the book value of the real estate assets. ALLETE also continues to pursue sales of individual parcels over time. Proceeds from such a sale would be strategically deployed to support growth in our energy infrastructure and related services businesses. ALLETE will continue to maintain key entitlements and infrastructure without making additional investments or acquisitions. (See Note 9. Investments.) Cash and Cash Equivalents. We consider all investments purchased with original maturities of three months or less to be cash equivalents. Supplemental Statement of Cash Flow Information Consolidated Statement of Cash Flows Year Ended December 31 2015 2014 2013 Millions Cash Paid During the Period for Interest – Net of Amounts Capitalized $59.0 $51.3 $47.5 Cash Paid During the Period for Income Taxes $0.4 $5.1 $0.5 Noncash Investing and Financing Activities Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment $(40.6) $21.7 $8.3 Capitalized Asset Retirement Costs $12.4 $22.4 $(0.7) AFUDC–Equity $3.3 $7.8 $4.6 ALLETE Common Stock Contributed to the Defined Benefit Pension Plan — $19.5 — Contingent Consideration $35.7 — — Accounts Receivable. Accounts receivable are reported on the Consolidated Balance Sheet net of an allowance for doubtful accounts. The allowance is based on our evaluation of the receivable portfolio under current conditions, overall portfolio quality, review of specific problems and such other factors that, in our judgment, deserve recognition in estimating losses. Accounts Receivable As of December 31 2015 2014 Millions Trade Accounts Receivable Billed $105.3 $85.5 Unbilled 16.9 18.6 Less: Allowance for Doubtful Accounts 1.0 1.1 Total Accounts Receivable $121.2 $103.0 NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Concentration of Credit Risk. We are subject to concentration of credit risk primarily as a result of accounts receivable. Minnesota Power sells electricity to 9 Large Power Customers. Receivables from these customers totaled $9.2 million at December 31, 2015 ( $14.7 million at December 31, 2014 ). Minnesota Power does not obtain collateral to support utility receivables, but monitors the credit standing of major customers. In addition, Minnesota Power’s taconite-producing Large Power Customers are on a weekly billing cycle, which allows us to closely manage collection of amounts due. One of these customers accounted for 7.7 percent of consolidated operating revenue in 2015 ( 11.9 percent in 2014 ; 12.0 percent in 2013 ). Long-Term Finance Receivables. Long-term finance receivables relating to our real estate operations are collateralized by property sold, accrue interest at market-based rates and are net of an allowance for doubtful accounts. We assess delinquent finance receivables by comparing the balance of such receivables to the estimated fair value of the collateralized property. If the fair value of the property is less than the finance receivable, we record a reserve for the difference. We estimate fair value based on recent property tax assessed values or current appraisals. Available-for-Sale Securities. Available-for-sale securities are recorded at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss), net of tax. Unrealized losses that are other than temporary are recognized in earnings. We use the specific identification method as the basis for determining the cost of securities sold. Our policy is to review available-for-sale securities for other than temporary impairment on a quarterly basis by assessing such factors as the share price trends and the impact of overall market conditions. (See Note 9. Investments.) Inventories. Inventories are stated at the lower of cost or market. Amounts removed from inventories in our Regulated Operations and ALLETE Clean Energy segments are recorded on an average cost basis. Amounts removed from inventories in our U.S. Water Services and Corporate and Other segments are recorded on an average cost, first-in, first-out or specific identification basis. Inventories As of December 31 2015 2014 Millions Fuel (a) $58.1 $29.0 Materials and Supplies 49.1 51.5 Raw Materials 2.7 — Finished Goods 7.5 — Reserve for Obsolescence (0.3 ) — Total Inventories $117.1 $80.5 (a) Fuel consists primarily of coal inventory at Minnesota Power. During 2015, Minnesota Power increased its coal inventory to take advantage of favorable pricing. Prepayments and Other Current Assets As of December 31 2015 2014 Millions Deferred Fuel Adjustment Clause $10.6 $16.3 Construction Costs for Development Project (a) — 48.2 Restricted Cash (b) 5.6 2.7 Other 19.5 14.8 Total Prepayments and Other Current Assets $35.7 $82.0 (a) Construction Costs for Development Project related to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) (b) Restricted Cash includes collateral deposits required under ALLETE Clean Energy’s loan agreements and collateral deposits required for U.S. Water Services’ standby letters of credit. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Property, Plant and Equipment. Property, plant and equipment are recorded at original cost and are reported on the balance sheet net of accumulated depreciation. Expenditures for additions, significant replacements, improvements and major plant overhauls are capitalized; maintenance and repair costs are expensed as incurred. Gains or losses on non-rate base property, plant and equipment are recognized when they are retired or otherwise disposed. When regulated utility property, plant and equipment are retired or otherwise disposed, no gain or loss is recognized in accordance with the accounting standards for the effects of certain types of regulation. Our Regulated Operations capitalize AFUDC, which includes both an interest and equity component. AFUDC represents the cost of both debt and equity funds used to finance utility plant additions during construction periods. AFUDC amounts capitalized are included in rate base and are recovered from customers as the related property is depreciated. Upon MPUC approval of cost recovery, the recognition of AFUDC ceases. (See Note 3. Property, Plant and Equipment.) We believe that long-standing ratemaking practices approved by applicable state and federal regulatory commissions allow for the recovery of the remaining book value of retired plant assets. Minnesota Power retired Taconite Harbor Unit 3 and converted Laskin to natural gas in 2015, which were actions included in Minnesota Power’s 2013 IRP approved by the MPUC in a November 2013 order. On September 1, 2015, Minnesota Power filed its 2015 IRP with the MPUC. The 2015 IRP contains the next steps in Minnesota Power’s EnergyForward plan including the economic idling of Taconite Harbor Units 1 and 2 in the fall of 2016 and the ceasing of coal-fired operations at Taconite Harbor in 2020. We do not expect to record any impairment charge as a result of the retirement of Taconite Harbor Unit 3, the ceasing of coal-fired operations at Taconite Harbor Units 1 and 2, or the conversion of Laskin. In addition, we expect to be able to continue depreciating these assets over their established remaining useful lives; however we are unable to predict the impact of unanticipated regulatory outcomes resulting in changes to their established remaining useful lives. The remaining net book value for Taconite Harbor as of December 31, 2015 was approximately $100 million . We would seek recovery in a general rate case of additional depreciation expense as a result of material changes in useful lives. Impairment of Long-Lived Assets. Land inventory is accounted for as held for use and is recorded at cost or estimated fair value. We review our long-lived assets, which include the legacy real estate assets of ALLETE Properties, for indicators of impairment in accordance with the accounting standards for property, plant and equipment on a quarterly basis. In accordance with the accounting standards for property, plant and equipment, if indicators of impairment exist, we test our real estate assets for recoverability by comparing the carrying amount of the asset to the undiscounted future net cash flows expected to be generated by the asset. Cash flows are assessed at the lowest level of identifiable cash flows, which may include a bulk sale of its entire portfolio, the sale of each individual land parcel, combining various parcels, or other combinations thereof. Our consideration of possible impairment for our real estate assets requires us to make estimates of future net cash flows on an undiscounted basis. The undiscounted future net cash flows are impacted by trends and factors known to us at the time they are calculated and our expectations related to: management’s best estimate of future sales prices; holding period and timing of sales; method of disposition; and future expenditures necessary to maintain the operations, including community development district assessments, property taxes and normal operation and maintenance costs. These estimates and expectations are specific to each land parcel, may vary among each land parcel, and may change in the future. If the excess of undiscounted future net cash flows over the carrying amount of a property is small, there is a greater risk of future impairment in the event of such future changes and any resulting impairment charges could be material. In recent years, market conditions for real estate in Florida have required us to review our land inventories for impairment. In response to market conditions and recent transaction activity, during the fourth quarter of 2015 the Company reevaluated its strategy related to the real estate assets of ALLETE Properties. The revised strategy incorporates the possibility of a bulk sale of its entire portfolio which, if consummated, is likely to result in sales proceeds below the book value of the real estate assets. ALLETE also continues to pursue sales of individual parcels over time. Proceeds from such a sale would be strategically deployed to support growth in our energy infrastructure and related services businesses. ALLETE will continue to maintain key entitlements and infrastructure without making additional investments or acquisitions. In connection with implementing the revised strategy in 2015, management evaluated its impairment analysis for its real estate assets using updated assumptions to determine estimated future net cash flows on an undiscounted basis. Future net cash flows were adjusted to consider the possibility of a bulk sale of its entire portfolio, in addition to sales over time under the existing divestiture plan. Estimated fair values were based upon current market data and pricing for individual parcels. Our impairment analysis incorporates a probability-weighted approach considering the alternative courses of sales noted above. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Impairment of Long-Lived Assets (Continued) Based on the results of undiscounted cash flow analysis, the undiscounted future net cash flows were not adequate to recover the carrying value of the real estate assets totaling $83.3 million . Estimated fair value was derived from current market interest in the property for a bulk sale of its entire portfolio, and discounted cash flow analysis of estimated selling price for sales over time. As a result, a non-cash impairment charge of $36.3 million was recorded in 2015 to reduce the carrying value of the real estate to its estimated fair value at December 31, 2015. If our real estate assets are sold differently than anticipated, the actual results could be materially different from our undiscounted future net cash flow analysis. In 2014 and 2013, impairment analyses of estimated undiscounted future net cash flows were conducted based on the strategy existing at that time, and indicated that the cash flows were adequate to recover the carrying value of ALLETE Properties real estate assets. As a result, no impairment was recorded for the years ended December 31, 2014 and 2013. Derivatives. ALLETE is exposed to certain risks relating to its business operations that can be managed through the use of derivative instruments. ALLETE may enter into derivative instruments to manage those risks including interest rate risk related to certain variable-rate borrowings. Accounting for Stock-Based Compensation. We apply the fair value recognition guidance for share-based payments. Under this guidance, we recognize stock-based compensation expense for all share-based payments granted, net of an estimated forfeiture rate. (See Note 18. Employee Stock and Incentive Plans.) Goodwill and Intangible Assets. Goodwill. Goodwill is the excess of the purchase price (consideration transferred) over the estimated fair value of net assets of acquired businesses. In accordance with GAAP, goodwill is not amortized. To align with the annual budgeting and forecasting process, goodwill is assessed annually in the fourth quarter for impairment and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. The estimated fair value is generally determined using a discounted cash flow analysis. Intangible Assets. Intangible assets include customer relationships, patents, non-compete agreements and trademarks and trade names. Intangible assets with definite lives consist of customer relationships, which are amortized using an attrition model, and patents and non-compete agreements, which are amortized on a straight-line basis with estimated useful lives ranging from approximately 3 years to approximately 22 years. We review definite-lived intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets consist of trademarks and trade names, which are tested for impairment annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Impairment is calculated as the excess of the asset’s carrying amount over its fair value. Fair value is generally determined using a discounted cash flow analysis. Other Non-Current Assets. As of December 31, 2015 , included in Other Non-Current Assets on the Consolidated Balance Sheet was restricted cash of $8.1 million related to collateral deposits required under ALLETE Clean Energy’s loan agreements ( $5.3 million as of December 31, 2014 ). NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Other Current Liabilities As of December 31 2015 2014 Millions Customer Deposits $15.1 $19.7 Power Purchase Agreements (a) 23.3 19.4 Construction Deposits Received for Development Project (b) — 54.3 Other (c) 47.7 27.4 Total Other Current Liabilities $86.1 $120.8 (a) Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) (b) Construction Deposits Received for Development Project relate to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) (c) Increase in 2015 includes customer refund liabilities of approximately $7 million , pending regulatory approval. Other Non-Current Liabilities As of December 31 2015 2014 Millions Asset Retirement Obligation $131.4 $109.2 Power Purchase Agreements (a) 138.1 110.7 Contingent Consideration (b) 36.6 — Other 42.9 45.1 Total Other Non-Current Liabilities $349.0 $265.0 (a) Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) (b) Contingent Consideration relates to the estimated fair value of the earnings-based payment resulting from the U.S. Water Services acquisition. (See Note 7. Acquisitions and Note 10. Fair Value.) Environmental Liabilities. We review environmental matters on a quarterly basis. Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Accruals are adjusted as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the Consolidated Balance Sheet at undiscounted amounts and exclude claims for recoveries from insurance or other third parties. Costs related to environmental contamination treatment and cleanup are expensed unless recoverable in rates from customers. (See Note 12. Commitments, Guarantees and Contingencies.) Revenue Recognition. Regulated Operations utility rates are under the jurisdiction of Minnesota, Wisconsin and federal regulatory authorities. Customers are billed on a cycle basis. Revenue is accrued for service provided but not yet billed. Regulated utility electric rates include adjustment clauses that: (1) bill or credit customers for fuel and purchased energy costs above or below the base levels in rate schedules; (2) bill retail customers for the recovery of conservation improvement program expenditures not collected in base rates; and (3) bill customers for the recovery of certain transmission, renewable energy and environmental expenditures. Fuel and purchased power expense is deferred to match the period in which the revenue for fuel and purchased power expense is collected from customers pursuant to the fuel adjustment clause. Revenue from our cost recovery riders (renewable resources, transmission and environmental improvement) is accounted for in accordance with the accounting standards for alternative revenue programs. These standards allow for recognizing revenue under an alternative revenue program if the program is established by an order from the utility’s regulatory commission, the order allows automatic adjustment of future rates, the amount of the revenue recognized is objectively determinable and probable of recovery, and the revenue will be collected within 24 months following the end of the annual period in which it is recognized. Revenue recognized using the alternative revenue program guidance is included in Operating Revenue on our Consolidated Statement of Income and Regulatory Assets on our Consolidated Balance Sheet until it is subsequently collected from customers. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition (Continued) Minnesota Power participates in MISO. MISO transactions are accounted for on a net hourly basis in each of the day-ahead and real-time markets. Minnesota Power records net sales in Operating Revenue and net purchases in Fuel and Purchased Power Expense on our Consolidated Statement of Income. The revenue and charges from MISO related to serving retail and municipal electric customers are recorded on a net basis as Fuel and Purchased Power Expense. ALLETE Clean Energy recognizes revenue from the sale of energy under long-term PPAs. Revenue is recognized when delivered to an agreed upon point or production is curtailed at the request of its customers at specified prices. As part of the wind energy facilities acquisitions in 2014 and 2015, ALLETE Clean Energy assumed various PPAs that were above or below estimated market prices at the time of acquisition and amortizes the resulting differences between contract prices and estimated market prices to Operating Revenue. In 2015 , we recognized $23.2 million of non-cash revenue amortization relating to the difference between contract prices and estimated market prices as an increase in Operating Revenue on the Consolidated Statement of Income ( $12.7 million in 2014 ). U.S. Water Services recognizes revenue from the sale of products when the earnings process is complete. This generally occurs when products are shipped to the customer in accordance with the contract or purchase order, ownership and risk of loss have passed to the customer, collectibility is reasonably assured, and pricing is fixed and determinable. Revenue from services is recognized as the services are performed. Corporate and Other BNI Energy recognizes coal sales when delivered at the cost of production plus a specified profit per ton of coal delivered. ALLETE Properties records full profit recognition on sales of real estate upon closing, provided that cash collections are at least 20 percent of the contract price and the other requirements under the guidance for sales of real estate are met. From time to time, certain contracts with customers allow us to receive participation revenue from land sales to third parties if various formula-based criteria are achieved. Unamortized Discount and Premium on Debt. Discount and premium on debt are deferred and amortized over the terms of the related debt instruments using a method which approximates the effective interest method. Income Taxes. ALLETE and its subsidiaries file a consolidated federal income tax return as well as combined and separate state income tax returns. We account for income taxes using the liability method in accordance with the accounting standards for income taxes. Under the liability method, deferred income tax assets and liabilities are established for all temporary differences in the book and tax basis of assets and liabilities, based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. Due to the effects of regulation on Minnesota Power and SWL&P, certain adjustments made to deferred income taxes are, in turn, recorded as regulatory assets or liabilities. Federal investment tax credits have been recorded as deferred credits and are being amortized to income tax expense over the service lives of the related property. In accordance with the accounting standards for uncertainty in income taxes, we are required to recognize in our financial statements the largest tax benefit of a tax position that is “more-likely-than-not” to be sustained on audit, based solely on the technical merits of the position as of the reporting date. The term “more-likely-than-not” means more than 50 percent likely. (See Note 15. Income Tax Expense.) Excise Taxes. We collect excise taxes from our customers levied by government entities. These taxes are stated separately on the billing to the customer and recorded as a liability to be remitted to the government entity. We account for the collection and payment of these taxes on a net basis. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Purchase Accounting. In accordance with the authoritative accounting guidance, the purchase price of an acquired business is generally allocated to the assets acquired and liabilities assumed at their estimated fair values on the date of acquisition. Any unallocated purchase price amount is recognized as goodwill on the Consolidated Balance Sheet if it exceeds the estimated fair value and as a bargain purchase gain on the Consolidated Income Statement if it is below the estimated fair value. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment, and the utilization of independent valuation experts as well as involves the use of significant estimates and assumptions with respect to the timing and amounts of future cash inflows and outflows, discount rates, market prices and asset lives, among other items. The judgments made in the determination of the estimated fair value assigned to the assets acquired and liabilities assumed, as well as the estimated useful life of each asset and the duration of each liability, can materially impact the financial statements in periods after acquisition, such as through depreciation and amortization expense. (See Note 7. Acquisitions.) New Accounting Standards. Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . In April 2014, the FASB issued an accounting standard update modifying the criteria for determining which disposals should be presented as discontinued operations and modifying the related disclosure requirements. Additionally, the new guidance requires that a business which qualifies as held for sale upon acquisition should be reported as discontinued operations. The new guidance was effective beginning in the first quarter of 2015, and will be applied prospectively to disposals and classifications of disposal groups as held for sale. The impact of this guidance on our consolidated financial position, results of operations or cash flows will be evaluated when future transactions arise. Revenue from Contracts with Customers. In May 2014, the FASB issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required regarding customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance was to have been effective for the Company beginning in the first quarter of 2017 using one of two prescribed retrospective methods. On July 9, 2015, the FASB decided to defer the effective date of the standard by one year which will make the guidance effective for the Company beginning in the first quarter of 2018. E |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segments [Text Block] | BUSINESS SEGMENTS During the year ended December 31, 2015, management updated our reportable segment presentation to reflect the manner in which we operate, assess, and allocate resources after our recent acquisitions. We now present three reportable segments, Regulated Operations, ALLETE Clean Energy, and U.S. Water Services. Prior period amounts have been revised to conform with the current business segment presentation. Regulated Operations includes three operating segments which consist of our regulated utilities, Minnesota Power and SWL&P, as well as our investment in ATC, a Wisconsin-based regulated utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. ALLETE Clean Energy is our business focused on acquiring or developing capital projects that create energy solutions by way of wind, solar, biomass, hydro, natural gas, shale resources, clean coal technology and other emerging energy innovations. U.S. Water Services is our integrated water management company which was acquired on February 10, 2015. The ALLETE Clean Energy and U.S. Water Services reportable segments comprise our Energy Infrastructure and Related Services businesses. We also present Corporate and Other which includes two operating segments, BNI Energy, our coal mining operations in North Dakota, and ALLETE Properties, our legacy Florida real estate investment, along with other business development and corporate expenditures, unallocated interest expense, a small amount of non-rate base generation, approximately 5,000 acres of land in Minnesota, and earnings on cash and investments. NOTE 2. BUSINESS SEGMENTS (Continued) Year Ended December 31 2015 2014 2013 Millions Operating Revenue Regulated Operations $991.2 $1,003.5 $925.5 Energy Infrastructure and Related Services ALLETE Clean Energy 262.1 33.2 — U.S. Water Services 119.8 — — Corporate and Other 113.3 100.1 92.9 Total Operating Revenue $1,486.4 $1,136.8 $1,018.4 Net Income (Loss) Attributable to ALLETE Regulated Operations (a) $131.6 $123.0 $103.6 Energy Infrastructure and Related Services ALLETE Clean Energy 29.9 3.3 (3.4 ) U.S. Water Services 0.9 — — Corporate and Other (a) (21.3 ) (1.5 ) 4.5 Total Net Income Attributable to ALLETE $141.1 $124.8 $104.7 Depreciation and Amortization Regulated Operations $135.1 $118.0 $110.2 Energy Infrastructure and Related Services ALLETE Clean Energy 18.7 10.1 — U.S. Water Services 7.3 — — Corporate and Other 8.9 7.6 6.4 Total Depreciation and Amortization $170.0 $135.7 $116.6 Impairment of Real Estate Corporate and Other $36.3 — — Interest Expense Regulated Operations (a) $53.9 $49.2 $44.4 Energy Infrastructure and Related Services ALLETE Clean Energy 3.3 0.8 — U.S. Water Services 1.4 — — Corporate and Other (a) 8.6 7.1 8.2 Eliminations (a) (2.3 ) (2.3 ) (2.3 ) Total Interest Expense $64.9 $54.8 $50.3 Equity Earnings in ATC Regulated Operations $16.3 $19.6 $20.3 Income Tax Expense (Benefit) Regulated Operations $24.4 $39.0 $35.1 Energy Infrastructure and Related Services ALLETE Clean Energy 21.0 2.3 (2.3 ) U.S. Water Services 0.9 — — Corporate and Other (21.0 ) (4.6 ) (4.1 ) Total Income Tax Expense $25.3 $36.7 $28.7 (a) During 2015, an intercompany loan agreement was entered into and interest expense was allocated to certain subsidiaries. The amounts are eliminated in consolidation. Prior period segment results have been revised to conform to the current presentation as if the intercompany loan existed as of January 1, 2013. NOTE 2. BUSINESS SEGMENTS (Continued) As of December 31 2015 2014 Millions Assets Regulated Operations $3,862.6 $3,709.6 Energy Infrastructure and Related Services ALLETE Clean Energy 504.6 291.9 U.S. Water Services 258.3 — Corporate and Other 281.6 359.3 Total Assets $4,907.1 $4,360.8 Capital Expenditures Regulated Operations $224.4 $583.5 Energy Infrastructure and Related Services ALLETE Clean Energy 8.6 4.2 U.S. Water Services 2.9 — Corporate and Other 15.9 16.6 Total Capital Expenditures $251.8 $604.3 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Text Block] | PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment As of December 31 2015 2014 Millions Regulated Operations $4,336.7 $3,903.3 Construction Work in Progress 101.2 355.4 Accumulated Depreciation (1,323.8 ) (1,260.2 ) Regulated Operations – Net 3,114.1 2,998.5 ALLETE Clean Energy 467.3 203.7 Construction Work in Progress 4.0 1.3 Accumulated Depreciation (24.0 ) (8.4 ) ALLETE Clean Energy – Net 447.3 196.6 U.S. Water Services 15.6 — Accumulated Depreciation (3.4 ) — U.S. Water Services – Net 12.2 — Corporate and Other (a) 165.6 152.5 Construction Work in Progress 4.5 4.6 Accumulated Depreciation (74.6 ) (67.4 ) Corporate and Other – Net 95.5 89.7 Property, Plant and Equipment – Net $3,669.1 $3,284.8 (a) Primarily includes BNI Energy and a small amount of non-rate base generation. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of assets. Estimated Useful Lives of Property, Plant and Equipment Regulated Operations ALLETE Clean Energy 5 to 44 years Generation 10 to 50 years U.S. Water Services 3 to 39 years Transmission 44 to 67 years Corporate and Other 3 to 39 years Distribution 18 to 65 years NOTE 3. PROPERTY, PLANT AND EQUIPMENT (Continued) Asset Retirement Obligations. We recognize, at fair value, obligations associated with the retirement of certain tangible, long-lived assets that result from the acquisition, construction, development or normal operation of the asset. Asset retirement obligations (ARO) relate primarily to the decommissioning of our coal-fired and wind energy facilities and land reclamation at BNI Energy, and are included in Other Non-Current Liabilities on our Consolidated Balance Sheet. The associated retirement costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the asset. Removal costs associated with certain distribution and transmission assets have not been recognized, as these facilities have indeterminate useful lives. Conditional asset retirement obligations have been identified for treated wood poles and remaining polychlorinated biphenyl and asbestos-containing assets; however, removal costs have not been recognized because they are considered immaterial to our Consolidated Financial Statements. Long-standing ratemaking practices approved by applicable state and federal regulatory commissions have allowed provisions for future plant removal costs in depreciation rates. These plant removal cost recoveries are classified either as AROs or as a regulatory liability for non-AROs. To the extent annual accruals for plant removal costs differ from accruals under approved depreciation rates, a regulatory asset has been established in accordance with the guidance for AROs. (See Note 5. Regulatory Matters.) Asset Retirement Obligations Millions Obligation as of December 31, 2013 $81.8 Accretion 5.5 Liabilities Recognized (a) 23.0 Liabilities Settled (0.5 ) Revisions in Estimated Cash Flows (0.6 ) Obligation as of December 31, 2014 109.2 Accretion 7.3 Liabilities Recognized (b) 5.1 Liabilities Settled (2.6 ) Revisions in Estimated Cash Flows 12.4 Obligation as of December 31, 2015 $131.4 (a) The increase in 2014 is related to BNI Energy for coal mining expansion and ALLETE Clean Energy due to wind energy facilities acquisitions.(See Note 7. Acquisitions.) (b) The increase in 2015 is related to the ALLETE Clean Energy wind energy facilities acquisitions in 2015. (See Note 7. Acquisitions.) |
Jointly-Owned Facilities and Pr
Jointly-Owned Facilities and Projects | 12 Months Ended |
Dec. 31, 2015 | |
Jointly-Owned Facilities and Projects [Abstract] | |
Jointly-Owned Facilities and Projects [Text Block] | JOINTLY-OWNED FACILITIES AND PROJECTS Boswell Unit 4. Minnesota Power owns 80 percent of the 585 MW Boswell Unit 4. While Minnesota Power operates the plant, certain decisions about the operations of Boswell Unit 4 are subject to the oversight of a committee on which it and WPPI Energy, the owner of the remaining 20 percent , have equal representation and voting rights. Each owner must provide its own financing and is obligated to its ownership share of operating costs. Minnesota Power’s share of direct operating expenses of Boswell Unit 4 is included in operating expense on our Consolidated Statement of Income. CapX2020. Minnesota Power is a participant in the CapX2020 initiative which represents an effort to ensure electric transmission and distribution reliability in Minnesota and the surrounding region for the future. CapX2020, which consists of electric cooperatives and municipal and investor-owned utilities, including Minnesota’s largest transmission owners, has assessed the transmission system and projected growth in customer demand for electricity through 2020. On April 2, 2015, the CapX2020 transmission line project from Fargo, North Dakota, to St. Cloud, Minnesota, was completed and placed in service. Minnesota Power previously participated in two additional CapX2020 projects which were completed and placed in service in 2011 and 2012. NOTE 4. JOINTLY-OWNED FACILITIES AND PROJECTS (Continued) Minnesota Power’s investments in jointly-owned facilities and projects and the related ownership percentages are as follows: Regulated Utility Plant As of December 31 Plant in Service Accumulated Depreciation Construction Work in Progress % Ownership Millions 2015 Boswell Unit 4 $668.2 $195.0 $6.9 80 CapX2020 Projects 101.1 3.4 — 9.3 - 14.7 Total $769.3 $198.4 $6.9 2014 Boswell Unit 4 $419.1 $209.1 $168.1 80 CapX2020 Projects 55.5 1.7 44.0 9.3 - 14.7 Total $474.6 $210.8 $212.1 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulated Operations [Abstract] | |
Regulatory Matters [Text Block] | REGULATORY MATTERS Electric Rates. Entities within our Regulated Operations segment file for periodic rate revisions with the MPUC, the FERC or the PSCW. 2010 Minnesota Rate Case. Minnesota Power’s current retail rates are based on a 2011 MPUC retail rate order, effective June 1, 2011, that allows for a 10.38 percent return on common equity and a 54.29 percent equity ratio. Subsequent to this last order, and as authorized by the MPUC, Minnesota Power has increased revenue under cost recovery riders for environmental, renewable and transmission investments. (See Transmission Cost Recovery Rider, Renewable Cost Recovery Rider and Boswell Mercury Emissions Reduction Plan .) Revenue from cost recovery riders was $86.0 million in 2015 ( $69.9 million in 2014 and $40.5 million in 2013 ). Energy-Intensive Trade-Exposed (EITE) Customer Rates. The Minnesota Legislature enacted EITE customer ratemaking legislation in June 2015. The legislation establishes that it is the energy policy of the state to have competitive rates for certain industries such as mining and forest products. On November 13, 2015, Minnesota Power filed a rate schedule for EITE customers and a corresponding rider for EITE cost recovery with the MPUC. The rate proposal is revenue, and cash flow, neutral. On February 11, 2016, the MPUC dismissed the petition without prejudice, offering Minnesota Power the option to refile the petition with additional information or initiate a new petition. Minnesota Power is evaluating the MPUC’s decision. FERC-Approved Wholesale Rates. Minnesota Power has 16 non-affiliated municipal customers in Minnesota. SWL&P is a Wisconsin utility and a wholesale customer of Minnesota Power. On April 21, 2015, Minnesota Power amended its formula-based wholesale electric sales contract with the Nashwauk Public Utilities Commission, extending the term through June 30, 2028. The electric service agreements with SWL&P and one other municipal customer are effective through June 30, 2019. The rates included in these contracts are set each July 1 based on a cost-based formula methodology, using estimated costs and a rate of return that is equal to Minnesota Power’s authorized rate of return for Minnesota retail customers (currently 10.38 percent ). The formula-based rate methodology also provides for a yearly true-up calculation for actual costs incurred. In September 2015, Minnesota Power amended its wholesale electric contracts with 14 municipal customers, extending the contract terms through December 31, 2024. These contracts include fixed capacity charges through 2018; beginning in 2019, the capacity charge will not increase by more than two percent or decrease by more than one percent from the previous year’s capacity charge and will be determined using a cost-based formula methodology. The base energy charge for each year of the contract term will be set each January 1, subject to monthly adjustment, and is also determined using a cost-based formula methodology. NOTE 5. REGULATORY MATTERS (Continued) All of the wholesale contracts include a termination clause requiring a three -year notice to terminate. In January 2016, one of Minnesota Power’s municipal customers provided notice of its intent to terminate its contract effective June 30, 2019. Minnesota Power currently provides approximately 29 MW of average monthly demand to this customer. Under the Nashwauk Public Utilities Commission agreement, no termination notice may be given prior to June 30, 2025. Under the agreement with SWL&P, no termination notice may be given prior to June 30, 2016. The remaining 14 municipal customers may not give termination notices prior to December 31, 2021. 2012 Wisconsin Rate Case. SWL&P’s current retail rates are based on a 2012 PSCW retail rate order, effective January 1, 2013, that allows for a 10.9 percent return on common equity. Transmission Cost Recovery Rider. Minnesota Power has an approved cost recovery rider in place for certain transmission investments and expenditures. In an order dated February 3, 2016, the MPUC approved Minnesota Power’s updated billing factor which allows Minnesota Power to charge retail customers on a current basis for the costs of constructing certain transmission facilities plus a return on the capital invested. As a result of the MPUC approval of the certificate of need for the GNTL on June 30, 2015, the project is eligible for cost recovery under the existing transmission cost recovery rider. Minnesota Power anticipates including its portion of the investments and expenditures for the GNTL in future transmission factor filings to include updated billing rates on customer bills. Renewable Cost Recovery Rider. Minnesota Power has an approved cost recovery rider in place for investments and expenditures related to the 497 MW Bison Wind Energy Center in North Dakota. Customer billing rates for the Bison Wind Energy Center were approved by the MPUC in an order dated May 22, 2015. In November 2014, Minnesota Power filed a renewable resources factor filing which includes updated costs associated with Bison. Upon approval of the filing, Minnesota Power will be authorized to include updated billing rates on customer bills. On February 13, 2015, Minnesota Power supplemented its November 2014 renewable resources factor filing to include costs associated with the restoration and repair of Thomson. In an order dated March 5, 2015, the MPUC approved Minnesota Power’s petition seeking cost recovery for investments and expenditures related to the restoration and repair of Thomson through a renewable resources rider. Annual Automatic Adjustment (AAA) of Charges. Minnesota Power’s AAA filings made in 2012, 2013, 2014 and 2015 are pending MPUC approval, and represent approximately $700 million in retail fuel cost recovery collected but subject to refund. These filings have historically been approved, and Minnesota Power currently expects full recovery of amounts represented by each AAA filing, although we cannot predict the outcome of the filings at the MPUC. Integrated Resource Plan (IRP). In a November 2013 order, the MPUC approved Minnesota Power’s 2013 IRP which detailed its EnergyForward strategic plan, announced in January 2013. Significant elements of the EnergyForward plan include major wind investments in North Dakota which were completed in the fourth quarter of 2014, the installation of emissions control technology at Boswell Unit 4 completed in December 2015, planning for the proposed GNTL, the conversion of Laskin from coal to natural gas completed in June 2015 and the retirement of Taconite Harbor Unit 3 completed in May 2015. On September 1, 2015, Minnesota Power filed its 2015 IRP with the MPUC which includes an analysis of a variety of existing and future energy resource alternatives and a projection of customer cost impact by class. The 2015 IRP also contains the next steps in Minnesota Power’s EnergyForward plan including the economic idling of Taconite Harbor Units 1 and 2 in the fall of 2016, the ceasing of coal-fired operations at Taconite Harbor in 2020, and the addition of between 200 MW and 300 MW of natural gas-fired generation in the next decade. Boswell Mercury Emissions Reduction Plan. In August 2012, Minnesota Power filed its mercury emissions reduction plan for Boswell Unit 4 with the MPUC and the MPCA in order to comply with the Minnesota Mercury Emissions Reduction Act and the Federal MATS rule. Construction on the project to implement the Boswell Unit 4 mercury emissions reduction plan was completed with project costs totaling approximately $220 million through December 31, 2015 . In a November 2013 order, the MPUC approved the Boswell Unit 4 mercury emissions reduction plan and cost recovery, establishing an environmental improvement rider. Customer billing rates for the environmental improvement rider were approved by the MPUC in an order dated August 24, 2015. On September 30, 2015, Minnesota Power filed an updated environmental improvement factor filing which included updated costs associated with Boswell Unit 4. Upon approval of the filing, Minnesota Power will be authorized to include updated billing rates on customer bills. NOTE 5. REGULATORY MATTERS (Continued) Boswell Remaining Life Petition. On November 17, 2015, Minnesota Power filed a petition with the MPUC for approval to extend Boswell’s remaining life to 2050 for all units and utilize the existing environmental improvement rider to credit a portion of the depreciation expense savings to customers. The extension request is based on the significant multi-emissions retrofit work done at Boswell Unit 3 and Boswell Unit 4. Great Northern Transmission Line (GNTL) . Minnesota Power and Manitoba Hydro have proposed construction of the GNTL, an approximately 220 -mile 500 kV transmission line, between Manitoba and Minnesota’s Iron Range. The GNTL is subject to various federal and state regulatory approvals. In October 2013, a certificate of need application was filed with the MPUC which was approved in an order dated June 30, 2015. Based on this order, Minnesota Power’s portion of the investments and expenditures for the project are eligible for cost recovery under its existing transmission cost recovery rider and are anticipated to be included in future transmission factor filings. In an order dated December 17, 2015, the FERC approved our request to recover on construction work in progress related to the GNTL from Minnesota Power’s wholesale customers. In April 2014, Minnesota Power filed a route permit application with the MPUC and a request for a presidential permit to cross the U.S.-Canadian border with the U.S. Department of Energy. In a July 2014 order, the MPUC determined the route permit application to be complete. On October 30, 2015, the Minnesota Department of Commerce and the U.S. Department of Energy released the final EIS for the GNTL. On January 4, 2016, an administrative law judge recommended approval of the route permit for the GNTL. A final decision on the route permit by the MPUC is expected in the first quarter of 2016. Manitoba Hydro must also obtain regulatory and governmental approvals related to a new transmission line in Canada. In September 2015, Manitoba Hydro submitted the final preferred route and EIS for the transmission line in Canada to the Manitoba Conservation and Water Stewardship for regulatory approval. Construction of Manitoba Hydro’s hydroelectric generation facility commenced in 2014. Upon receipt of all applicable permits and approvals, construction of the GNTL is expected to begin by 2017 and to be completed in 2020. Conservation Improvement Program (CIP). Minnesota requires electric utilities to spend a minimum of 1.5 percent of net gross operating revenues from service provided in the state on energy CIPs each year. These investments are recovered from certain retail customers through a combination of the conservation cost recovery charge included in retail base rates and a conservation program adjustment, which is adjusted annually through the CIP consolidated filing. The MPUC allows utilities to accumulate, in a deferred account for future cost recovery, all CIP expenditures, any financial incentive earned for cost-effective program achievements, and a carrying charge on the deferred account balance. Minnesota Power refers to its conservation programs collectively as the “Power of One”. In June 2013, Minnesota Power submitted a triennial filing for 2014 through 2016, which was subsequently approved by the Minnesota Department of Commerce. Minnesota Power’s CIP investment goal was $7.1 million for 2015 ( $6.9 million for 2014; $6.0 million for 2013), with actual spending of $6.6 million in 2015 ( $7.2 million in 2014; $6.4 million in 2013). Minnesota requires each utility to establish an annual energy-savings goal of 1.5 percent of annual retail energy sales. On April 1, 2015, Minnesota Power submitted its 2014 CIP filing that requested a CIP financial incentive of $6.2 million . The requested CIP financial incentive was approved by the MPUC in an order dated September 16, 2015, and was recorded as revenue and as a regulatory asset. The approved financial incentive will be recovered through customer billing rates in 2015 and 2016. In 2014 and 2013, the CIP financial incentive recognized was $8.7 million and $7.1 million , respectively. CIP financial incentives are recognized in the period in which the MPUC approves the filing. he MPUC implemented certain limitations on amounts recoverable for the utility performance incentive program for recovery years beginning in 2015. MISO Return on Equity Complaints. In November 2013, several customer groups located within the MISO service area filed complaints with the FERC requesting, among other things, a reduction in the base return on equity used by MISO transmission owners, including ALLETE, to 9.15 percent . On February 12, 2015, an additional complaint was filed with the FERC seeking an order to further reduce the base return on equity to 8.67 percent . On December 29, 2015, a federal administrative law judge ruled that the MISO transmission users have been charged an unreasonable base return on equity and proposed a reduction to 10.32 percent, subject to approval or adjustment by the FERC. A final decision from the FERC on the administrative law judge’s recommendation is expected in 2016. As a result of these complaints filed with the FERC and the administrative law judge’s recommendation , Minnesota Power has recorded an estimated refund obligation for MISO revenue of $7.2 million and an estimated refund for MISO transmission expense of $4.5 million , resulting in a reserve of $2.7 million as of December 31, 2015 ; $1.5 million was attributable to prior years. NOTE 5. REGULATORY MATTERS (Continued) Minnesota Solar Energy Standard. In May 2013, legislation was enacted by the state of Minnesota requiring at least 1.5 percent of total retail electric sales, excluding sales to certain industrial customers, to be generated by solar energy by the end of 2020. At least 10 percent of the 1.5 percent mandate must be met by solar energy generated by or procured from solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less. Minnesota Power has two solar projects under development. On August 21, 2015, Minnesota Power filed for MPUC approval of a 10 MW utility scale solar project at Camp Ripley, a Minnesota Army National Guard base and training facility near Little Falls, Minnesota. At a hearing on January 28, 2016, the MPUC approved the Camp Ripley solar project as eligible to meet the solar energy standard and for current cost recovery, subject to certain compliance requirements. On September 10, 2015, Minnesota Power filed for MPUC approval of a 1 MW community solar garden project in Saint Louis County, Minnesota. If the community solar garden project is also approved, Minnesota Power believes these projects will meet approximately one-third of the overall mandate and approximately one-fourth of the mandate related to solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less. Costs associated with these projects are expected to be recovered from customers. Regulatory Assets and Liabilities. Our regulated utility operations are subject to accounting guidance for the effect of certain types of regulation. Regulatory assets represent incurred costs that have been deferred as they are probable for recovery in customer rates. Regulatory liabilities represent obligations to make refunds to customers and amounts collected in rates for which the related costs have not yet been incurred. The Company assesses quarterly whether regulatory assets and liabilities meet the criteria for probability of future recovery or deferral. No regulatory assets or liabilities are currently earning a return. The recovery, refund or credit to rates for these regulatory assets and liabilities will occur over the periods either specified by the applicable regulatory authority or over the corresponding period related to the asset or liability. NOTE 5. REGULATORY MATTERS (Continued) Regulatory Assets and Liabilities As of December 31 2015 2014 Millions Current Regulatory Assets (a) Deferred Fuel Adjustment Clause $10.6 $16.3 Total Current Regulatory Assets 10.6 16.3 Non-Current Regulatory Assets Defined Benefit Pension and Other Postretirement Benefit Plans (b) 219.3 223.9 Income Taxes (c) 64.2 46.6 Cost Recovery Riders (d) 58.0 59.7 Asset Retirement Obligations (e) 21.6 17.8 PPACA Income Tax Deferral 5.0 5.0 Other 3.9 4.3 Total Non-Current Regulatory Assets 372.0 357.3 Total Regulatory Assets $382.6 $373.6 Non-Current Regulatory Liabilities Wholesale and Retail Contra AFUDC (f) $58.0 $42.9 Plant Removal Obligations 22.1 22.8 Income Taxes (c) 6.1 13.4 Defined Benefit Pension and Other Postretirement Benefit Plans (b) 0.9 3.5 Other 17.9 11.6 Total Non-Current Regulatory Liabilities $105.0 $94.2 (a) Current regulatory assets are included in Prepayments and Other on the Consolidated Balance Sheet. (b) Defined benefit pension and other postretirement items included in our Regulated Operations, which are otherwise required to be recognized in accumulated other comprehensive income as actuarial gains and losses as well as prior service costs and credits, are recognized as regulatory assets or regulatory liabilities on the Consolidated Balance Sheet. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. (See Note 17. Pension and Other Postretirement Benefit Plans.) (c) These costs represent the difference between deferred income taxes recognized for financial reporting purposes and amounts previously billed to our customers. This balance will decrease over the remaining life of the related temporary differences and flow through current income taxes. (d) The cost recovery rider regulatory assets are revenues not yet collected from our customers primarily due to capital expenditures related to the Bison Wind Energy Center, investment in CapX2020 projects, and the Boswell Unit 4 environmental upgrade and are recognized in accordance with the accounting standards for alternative revenue programs. The cost recovery rider regulatory assets as of December 31, 2015 will be recovered over the next two years. (e) Asset retirement obligations will accrete and be amortized over the lives of the related property with asset retirement obligations. (f) Wholesale and Retail Contra AFUDC represents amortization to offset AFUDC Equity and Debt recorded during the construction period of our cost recovery rider projects prior to placing the projects in service. The regulatory liability will decrease over the remaining depreciable life of the related asset. |
Investment in ATC
Investment in ATC | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in ATC [Text Block] | INVESTMENT IN ATC Our wholly-owned subsidiary, ALLETE Transmission Holdings, owns approximately 8 percent of ATC, a Wisconsin-based utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. We account for our investment in ATC under the equity method of accounting. As of December 31, 2015 , our equity investment in ATC was $124.5 million ( $121.1 million at December 31, 2014). On January 29, 2016, we invested an additional $1.2 million in ATC. In total, we expect to invest approximately $6.2 million throughout 2016 . ALLETE’s Investment in ATC Year Ended December 31 2015 2014 Millions Equity Investment Beginning Balance $121.1 $114.6 Cash Investments 1.6 3.9 Equity in ATC Earnings 16.3 19.6 Distributed ATC Earnings (14.5 ) (17.0 ) Equity Investment Ending Balance $124.5 $121.1 ATC Summarized Financial Data Balance Sheet Data As of December 31 2015 2014 Millions Current Assets $80.5 $66.4 Non-Current Assets 3,957.6 3,728.7 Total Assets $4,038.1 $3,795.1 Current Liabilities $330.3 $313.1 Long-Term Debt 1,800.0 1,701.0 Other Non-Current Liabilities 245.0 163.8 Members’ Equity 1,662.8 1,617.2 Total Liabilities and Members’ Equity $4,038.1 $3,795.1 Income Statement Data Year Ended December 31 2015 2014 2013 Millions Revenue $615.8 $635.0 $626.3 Operating Expense 319.3 307.4 295.1 Other Expense 96.1 88.9 83.6 Net Income $200.4 $238.7 $247.6 ALLETE’s Equity in Net Income $16.3 $19.6 $20.3 Our equity earnings in ATC for the year ended December 31, 2015 , were $16.3 million and reflected a $5.2 million reduction related to complaints filed with the FERC by several customer groups located within the MISO service area; of which $2.4 million was attributable to ATC’s change in estimate of a refund liability relating to prior years. The groups requested, among other things, a reduction in the base return on equity used by MISO transmission owners, including ATC, to 9.15 percent . ATC's current authorized return on equity is 12.2 percent . On February 12, 2015, an additional complaint was filed with the FERC seeking an order to further reduce the base return on equity to 8.67 percent . On December 29, 2015, a federal administrative law judge ruled that the MISO transmission users have been charged an unreasonable base return on equity and proposed a reduction to 10.32 percent, subject to approval or adjustment by the FERC. A final decision from the FERC on the administrative law judge’s recommendation is currently expected in 2016. We own approximately 8 percent of ATC and estimate that for every 50 basis point reduction in ATC’s allowed return on equity our equity earnings in ATC would be impacted annually by approximately $0.5 million on an after-tax basis ( $0.9 million pre-tax). |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS The acquisitions below are consistent with ALLETE’s stated strategy of investing in energy infrastructure and related services businesses to complement its core regulated utility, balance exposure to business cycles and changing demand, and provide potential long-term earnings growth. The pro forma impact of the following acquisitions was not significant , either individually or in the aggregate, to the results of the Company for the years ended December 31, 2015 , and 2014 . 2015 Activity. U.S. Water Services. On February 10, 2015 , ALLETE acquired U.S. Water Services . Total consideration for the transaction was $202.3 million , which included payment of $166.6 million in cash and an estimated fair value of earnings-based contingent consideration of $35.7 million to be paid through 2019. The contingent consideration is presented within Other Non-Current Liabilities on the Consolidated Balance Sheet. The Consolidated Statement of Income reflects 100 percent of the results of operations for U.S. Water Services since the acquisition date as the Company has acquired 100 percent of U.S. Water Services. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. Millions Assets Acquired Cash and Cash Equivalents $0.9 Accounts Receivable 16.8 Inventories (a) 13.4 Other Current Assets (b) 5.3 Property, Plant and Equipment 10.6 Intangible Assets (c) 83.0 Goodwill (d) 122.9 Other Non-Current Assets 0.2 Total Assets Acquired $253.1 Liabilities Assumed Current Liabilities $19.2 Non-Current Liabilities 31.6 Total Liabilities Assumed $50.8 Net Identifiable Assets Acquired $202.3 (a) Included in Inventories was $2.7 million of fair value adjustments relating to work in progress and finished goods inventories which will be recognized as Cost of Sales within one year from the acquisition date. (b) Included in Other Current Assets was $1.6 million relating to the fair value of sales backlog. Sales backlog will be recognized as Cost of Sales within one year from the acquisition date. Also included in Other Current Assets was restricted cash of $2.1 million relating to cash pledged as collateral for standby letters of credit. (c) Intangible Assets include customer relationships, patents, non-compete agreements, and trademarks and trade names. (See Note 8. Goodwill and Intangible Assets.) (d) For tax purposes, the purchase price allocation resulted in $2.9 million of deductible goodwill. Acquisition-related costs of $3.0 million after-tax were expensed as incurred during 2015 and recorded in Operating and Maintenance on the Consolidated Statement of Income. NOTE 7. ACQUISITIONS (Continued) 2015 Activity (Continued) Chanarambie/Viking. On April 15, 2015 , ALLETE Clean Energy acquired 100 percent of wind energy facilities in southern Minnesota ( Chanarambie/Viking ) from EDF Renewable Energy, Inc. for $48.0 million . The facilities have 97.5 MW of generating capability and are located near ALLETE Clean Energy’s Lake Benton facility. The wind energy facilities began commercial operations in 2003 and have PPAs in place for their entire output, which expire in 2018 ( 12 MW) and 2023 ( 85.5 MW). The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. Millions Assets Acquired Current Assets $4.8 Property, Plant and Equipment 103.0 Other Non-Current Assets (a) 1.0 Total Assets Acquired $108.8 Liabilities Assumed Current Liabilities (b) $6.7 Power Purchase Agreements 49.0 Non-Current Liabilities 5.1 Total Liabilities Assumed $60.8 Net Identifiable Assets Acquired $48.0 (a) Included in Other Non-Current Assets was $0.3 million of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. (b) Current Liabilities included $5.9 million related to the current portion of Power Purchase Agreements. Acquisition-related costs of $0.2 million after-tax were expensed as incurred during 2015 and recorded in Operating and Maintenance on the Consolidated Statement of Income. Armenia Mountain. On July 1, 2015 , ALLETE Clean Energy acquired 100 percent of a wind energy facility located near Troy, Pennsylvania ( Armenia Mountain ) from The AES Corporation (AES) and a minority shareholder for $111.1 million , plus the assumption of existing debt. The facility has 100.5 MW of generating capability, began commercial operations in 2009, and has PPAs in place for its entire output, which expire in 2024. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. NOTE 7. ACQUISITIONS (Continued) 2015 Activity (Continued) Millions Assets Acquired Current Assets (a) $9.0 Property, Plant and Equipment 156.2 Other Non-Current Assets (b) 14.4 Total Assets Acquired $179.6 Liabilities Assumed Current Liabilities $2.9 Long-Term Debt Due Within One Year 5.9 Long-Term Debt 55.0 Other Non-Current Liabilities 4.7 Total Liabilities Assumed $68.5 Net Identifiable Assets Acquired $111.1 (a) Included in Current Assets was $1.0 million related to the current portion of Power Purchase Agreements and $6.0 million of restricted cash related to collateral deposits required under its loan agreement. (b) Included in Other Non-Current Assets was $8.2 million related to the non-current portion of Power Purchase Agreements, $6.1 million of restricted cash related to collateral deposits required under its loan agreements, and an immaterial amount of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. Acquisition-related costs of $1.6 million after-tax were expensed as incurred during 2015 and recorded in Operating and Maintenance on the Consolidated Statement of Income. A and W Technologies. On November 1, 2015 , U.S. Water Services acquired 100 percent of A and W Technologies, Inc. (AWT). Total consideration for the transaction was $9.2 million , which included payment of $8.2 million in cash and a $1.0 million payment due in April 2016. AWT, similar to U.S. Water Services, is an integrated water management company and was acquired to expand U.S. Water Services’ regional footprint in the Southeastern United States. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. Millions Assets Acquired Current Assets $1.0 Property, Plant and Equipment 0.1 Intangible Assets (a) 3.9 Goodwill (b) 4.3 Total Assets Acquired $9.3 Liabilities Assumed Current Liabilities $0.1 Total Liabilities Assumed $0.1 Net Identifiable Assets Acquired $9.2 (a) Intangible Assets include customer relationships and non-compete agreements. (See Note 8. Goodwill and Intangible Assets.) (b) For tax purposes, the purchase price allocation resulted in $4.3 million of deductible goodwill. Acquisition-related costs were immaterial , expensed as incurred during 2015 and recorded in Operating and Maintenance on the Consolidated Statement of Income. NOTE 7. ACQUISITIONS (Continued) 2015 Activity (Continued) Montana-Dakota Utilities. In November 2014 , ALLETE Clean Energy acquired a business for $27.0 million to develop a wind energy facility near Hettinger, North Dakota. ALLETE Clean Energy constructed a 107 MW wind energy facility consisting of 43 turbines, which was approved to be sold to Montana-Dakota Utilities by the NDPSC on June 30, 2015. Construction and sale of the wind energy facility were completed in December 2015 with revenue totaling $197.7 million . The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. Fair value measurements were valued primarily using the replacement cost method and determined that the assets acquired amounted to cash of $3.6 million and construction in process of $23.4 million . There were no liabilities assumed and no recognition of goodwill. For the year ended December 31, 2015 , revenue of $197.7 million and cost of sales of $162.9 million were recognized related to the sale of the wind energy facility to Montana-Dakota Utilities and were reported on the Consolidated Statement of Income as Operating Revenue and Cost of Sales, respectively. As of December 31, 2014 , contract billings received were $54.3 million and construction costs incurred (including the construction costs acquired) were $48.2 million and were classified as Current Liabilities - Other and Prepayments and Other, respectively, on the Consolidated Balance Sheet. 2014 Activity. ACE Wind Acquisition. In January 2014 , ALLETE Clean Energy acquired wind energy facilities located in Lake Benton, Minnesota ( Lake Benton ), Storm Lake, Iowa ( Storm Lake II ) and Condon, Oregon ( Condon ) from AES for $26.9 million . Lake Benton, Storm Lake II and Condon have 104 MW, 77 MW and 50 MW of generating capability, respectively. Lake Benton and Storm Lake II began commercial operations in 1998, while Condon began operations in 2002. All three wind energy facilities have PPAs in place for their entire output, which expire in various years between 2019 and 2032. ALLETE Clean Energy acquired a controlling interest in the limited liability company (LLC) which owns Lake Benton and Storm Lake II, and a controlling interest in the LLC that owns Condon. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. Fair value measurements were valued primarily using the discounted cash flow method. NOTE 7. ACQUISITIONS (Continued) 2014 Activity (Continued) Millions Assets Acquired Cash and Cash Equivalents $3.8 Other Current Assets 14.3 Property, Plant and Equipment 156.9 Other Non-Current Assets (a) 7.5 Total Assets Acquired $182.5 Liabilities Assumed Current Liabilities (b) $15.2 Long-Term Debt Due Within One Year 2.2 Long-Term Debt 21.1 Power Purchase Agreements 99.4 Other Non-Current Liabilities 10.6 Non-Controlling Interest (c) 7.1 Total Liabilities and Non-Controlling Interest Assumed $155.6 Net Identifiable Assets Acquired $26.9 (a) Included in Other Non-Current Assets was $0.3 million for the option to purchase Armenia Mountain, and goodwill of $2.9 million. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. (b) Current Liabilities included $12.4 million related to the current portion of Power Purchase Agreements. (c) The purchase price accounting valued the non-controlling interest related to Lake Benton, Storm Lake II and Condon at fair value using the discounted cash flow method. Acquisition-related costs of $1.4 million after-tax were expensed as incurred during 2014 and recorded in Operating and Maintenance on the Consolidated Statement of Income. In February 2014, ALLETE Clean Energy purchased the non-controlling interest related to Lake Benton and Storm Lake II for $6.0 million. This was accounted for as an equity transaction, and no gain or loss was recognized in net income or other comprehensive income. Storm Lake I Acquisition. In December 2014 , ALLETE Clean Energy acquired a wind energy facility in Storm Lake, Iowa ( Storm Lake I ) from NRG Energy, Inc. for $15.1 million . Storm Lake I has 108 MW of generating capability and is located adjacent to Storm Lake II. The wind energy facility began commercial operations in 1999 and has a PPA in place for its entire output which expires in 2019. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. NOTE 7. ACQUISITIONS (Continued) 2014 Activity (Continued) Millions Assets Acquired Cash and Cash Equivalents $0.4 Other Current Assets 4.7 Property, Plant and Equipment 47.3 Other Non-Current Assets (a) 11.4 Total Assets Acquired $63.8 Liabilities Assumed Current Liabilities (b) $8.2 Power Purchase Agreements 23.5 Non-Current Liabilities 17.0 Total Liabilities Assumed $48.7 Net Identifiable Assets Acquired $15.1 (a) Included in Other Non-Current Assets was $0.4 million of restricted cash and an immaterial amount of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. (b) Current Liabilities included $7.5 million related to the current portion of Power Purchase Agreements. Acquisition-related costs were immaterial , expensed as incurred during 2014 and recorded in Operating and Maintenance on the Consolidated Statement of Income. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets [Text Block] | GOODWILL AND INTANGIBLE ASSETS The following table summarizes changes to goodwill by reportable segment for the year ended December 31, 2015 : ALLETE Clean Energy U.S. Water Services Total Millions Balance as of December 31, 2014 $2.9 — $2.9 Acquired Goodwill 0.4 $127.3 127.7 Balance as of December 31, 2015 $3.3 $127.3 $130.6 Balances of intangible assets, net, excluding goodwill as of December 31, 2015 , are as follows: December 31, Additions (a) Amortization Other (b) December 31, Millions Intangible Assets Definite-Lived Intangible Assets Customer Relationships — $64.0 $(3.2) — $60.8 Developed Technology and Other (c) $1.9 6.4 (0.8) $(0.3) 7.2 Total Definite-Lived Intangible Assets 1.9 70.4 (4.0) (0.3) 68.0 Indefinite-Lived Intangible Assets Trademarks and Trade Names — 16.6 n/a — 16.6 Total Intangible Assets $1.9 $87.0 $(4.0) $(0.3) $84.6 (a) Additions are primarily the result of the U.S. Water Services acquisition. (See Note 7. Acquisitions.) (b) Armenia Mountain was acquired on July 1, 2015, at which time the purchase option intangible asset was reclassified as a component of the acquisition consideration. (c) Developed Technology and Other includes patents, non-compete agreements, and land easements. NOTE 8. GOODWILL AND INTANGIBLE ASSETS (Continued) Customer relationships have a useful life of approximately 22 years and developed technology and other have useful lives ranging from approximately 3 years to approximately 13 years (weighted average of approximately 9 years). The weighted average useful life of all definite-lived intangible assets as of December 31, 2015 , is approximately 21 years. Amortization expense of intangible assets for the year ended December 31, 2015 , was $4.0 million . Accumulated amortization was $4.1 million and $0.1 million as of December 31, 2015 , and December 31, 2014 , respectively. Estimated annual amortization expense for definite-lived intangible assets is $5.1 million in 2016 , $5.0 million in 2017 , $4.7 million in 2018 , $4.4 million in 2019 , $4.2 million in 2020 , and $44.6 million thereafter. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments [Text Block] | INVESTMENTS Investments. At December 31, 2015 , the investment portfolio included the legacy real estate assets of ALLETE Properties, debt and equity securities consisting primarily of securities held in other postretirement plans to fund employee benefits, the cash equivalents within these plans, and other assets consisting primarily of land in Minnesota. Other Investments As of December 31 2015 2014 Millions ALLETE Properties (a) $50.1 $88.2 Available-for-sale Securities (b) 18.5 18.9 Cash Equivalents 2.0 2.9 Other 4.0 4.4 Total Other Investments $74.6 $114.4 (a) In 2015, ALLETE Properties recorded a $36.3 million non-cash impairment charge related to its real estate assets. (See Note 1. Operations and Significant Accounting Policies.) (b) As of December 31, 2015 , the aggregate amount of available-for-sale corporate debt securities maturing in one year or less was none , in one year to less than three years was $1.0 million , in three years to less than five years was $3.2 million , and in five or more years was $6.7 million . Land Inventory. Land inventory is accounted for as held for use and is recorded at cost, unless the carrying value is determined not to be recoverable in accordance with the accounting standards for property, plant and equipment, in which case the land inventory is written down to estimated fair value. Land values are reviewed for indicators of impairment on a quarterly basis and a $36.3 million non-cash impairment was recorded for the year ended December 31, 2015 ( none for the years ended December 31, 2014 and 2013 ). (See Note 1. Operations and Significant Accounting Policies.) Available-for-Sale Investments. We account for our available-for-sale portfolio in accordance with the guidance for certain investments in debt and equity securities. Our available-for-sale securities portfolio consisted primarily of securities held in other postretirement plans to fund employee benefits. Available-For-Sale Securities Millions Gross Unrealized As of December 31 Cost Gain Loss Fair Value 2015 $20.0 — $1.5 $18.5 2014 $19.6 $0.2 $0.9 $18.9 2013 $18.3 — $0.6 $17.7 Net Gross Realized Year Ended December 31 Proceeds Gain Loss 2015 $1.7 $0.1 — 2014 $3.6 $0.2 — 2013 $16.1 $2.2 — |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value [Text Block] | FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs, which are used to measure fair value, are prioritized through the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes primarily mutual fund investments held to fund employee benefits. Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. This category includes deferred compensation, fixed income securities, and derivative instruments consisting of cash flow hedges. Level 3 — Significant inputs that are generally less observable from objective sources. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value. The following tables set forth by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015 and 2014 . Each asset and liability is classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of these assets and liabilities and their placement within the fair value hierarchy levels. The estimated fair value of Cash and Cash Equivalents listed on the Consolidated Balance Sheet approximates the carrying amount and therefore is excluded from the recurring fair value measures in the following tables. Fair Value as of December 31, 2015 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Investments (a) Available-for-sale – Equity Securities $7.6 — — $7.6 Available-for-sale – Corporate Debt Securities — $10.9 — 10.9 Cash Equivalents 2.0 — — 2.0 Total Fair Value of Assets $9.6 $10.9 — $20.5 Liabilities: (b) Deferred Compensation — $16.1 — $16.1 U.S. Water Services Contingent Consideration — — $36.6 36.6 Total Fair Value of Liabilities — $16.1 $36.6 $52.7 Total Net Fair Value of Assets (Liabilities) $9.6 $(5.2) $(36.6) $(32.2) (a) Included in Other Investments on the Consolidated Balance Sheet. (b) Included in Other Non-Current Liabilities on the Consolidated Balance Sheet. NOTE 10. FAIR VALUE (Continued) Fair Value as of December 31, 2014 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Investments (a) Available-for-sale – Equity Securities $8.1 — — $8.1 Available-for-sale – Corporate Debt Securities — $10.8 — 10.8 Cash Equivalents 2.9 — — 2.9 Total Fair Value of Assets $11.0 $10.8 — $21.8 Liabilities: Deferred Compensation (b) — $16.2 — $16.2 Derivatives – Interest Rate Swap (c) — 0.3 — 0.3 Total Fair Value of Liabilities — $16.5 — $16.5 Total Net Fair Value of Assets (Liabilities) $11.0 $(5.7) — $5.3 (a) Included in Other Investments on the Consolidated Balance Sheet. (b) Included in Other Non-Current Liabilities on the Consolidated Balance Sheet. (c) Included in Current Liabilities - Other on the Consolidated Balance Sheet. The following table provides a reconciliation of the beginning and ending balances of the U.S. Water Services Contingent Consideration measured at fair value using Level 3 measurements as of December 31, 2015 . The acquisition contingent consideration was recorded at the acquisition date at its estimated fair value. The acquisition date fair value is measured based on the consideration expected to be transferred, discounted to present value. The discount rate is determined at the time of measurement in accordance with generally accepted valuation methods. The fair value of the acquisition contingent consideration is remeasured to arrive at estimated fair value each reporting period with the change in fair value recognized as income or expense in our Consolidated Statement of Income. Changes to the fair value of the acquisition contingent consideration can result from changes in discount rates, or in the timing and amount of earnings estimates. Using different valuation assumptions, including earnings projections or discount rates, may result in different fair value measurements and expense (or income) in future periods. The acquisition contingent consideration was measured at $36.6 million as of December 31, 2015 . Recurring Fair Value Measures Activity in Level 3 Millions Balance as of December 31, 2014 — Recognition of U.S. Water Services Contingent Consideration $35.7 Accretion Expense (a) 2.4 Changes in Cash Flow Projections (1.5 ) Balance as of December 31, 2015 $36.6 (a) Included in Interest Expense on the Consolidated Statement of Income. The Level 3 activity above is the result of the February 10, 2015, acquisition of U.S. Water Services. There was no activity in Level 3 during the year ended December 31, 2014 . The Company’s policy is to recognize transfers in and transfers out as of the actual date of the event or change in circumstances that caused the transfer. For the years ended December 31, 2015 and 2014 , there were no transfers in or out of Levels 1, 2 or 3. NOTE 10. FAIR VALUE (Continued) Fair Value of Financial Instruments. With the exception of the item listed in the table below, the estimated fair value of all financial instruments approximates the carrying amount. The fair value for the item below was based on quoted market prices for the same or similar instruments (Level 2). Financial Instruments Carrying Amount Fair Value Millions Long-Term Debt, Including Current Portion December 31, 2015 $1,605.0 $1,676.0 December 31, 2014 $1,373.5 $1,484.5 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. Non-financial assets such as equity method investments, goodwill, intangible assets, and property, plant and equipment are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment is recognized. Equity Method Investment. Our wholly-owned subsidiary, ALLETE Transmission Holdings, owns approximately 8 percent of ATC, a Wisconsin-based utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. (See Note 6. Investment in ATC.) The aggregate carrying amount of the investment was 124.5 million as of December 31, 2015 ( 121.1 million as of December 31, 2014 ). The Company assesses our investment in ATC for impairment whenever events or changes in circumstances indicate that the carrying amount of our investment in ATC may not be recoverable. For the years ended December 31, 2015 and 2014 , there were no indicators of impairment. Goodwill. To align with the annual budgeting and forecasting process, the Company assesses the impairment of goodwill annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Substantially all of the Company’s goodwill is a result of the U.S. Water Services acquisition on February 10, 2015. The aggregate carrying amount of goodwill was $130.6 million as of December 31, 2015 and $2.9 million as of December 31, 2014 . Impairment testing for goodwill is done at the reporting unit level. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. The test for impairment requires us to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. As of December 31, 2015 , there have been no events or changes in circumstance which would indicate impairment of our goodwill. Intangible Assets. The Company assesses indefinite-lived intangible assets for impairment annually in the fourth quarter. The Company also assesses indefinite-lived and definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. Substantially all of the Company’s intangible assets are a result of the U.S. Water Services acquisition on February 10, 2015. The aggregate carrying amount of intangible assets was $84.6 million as of December 31, 2015 ( $1.9 million as of December 31, 2014 ). When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying amount over its undiscounted future cash flows. If the carrying amount is not recoverable, an impairment loss is recorded based on the amount by which the carrying amount exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. As of December 31, 2015 , there have been no events or changes in circumstance which would indicate impairment of our intangible assets. NOTE 10. FAIR VALUE (Continued) Property, Plant and Equipment. The Company assesses the impairment of property, plant, and equipment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment assets may not be recoverable. For the years ended December 31, 2015 and 2014 , there were no indicators of impairment. We believe that long-standing ratemaking practices approved by applicable state and federal regulatory commissions allow for the recovery of the remaining book value of retired plant assets. Minnesota Power retired Taconite Harbor Unit 3 and converted Laskin to natural gas in 2015, which were actions included in Minnesota Power’s 2013 IRP approved by the MPUC in a November 2013 order. On September 1, 2015, Minnesota Power filed its 2015 IRP with the MPUC. The 2015 IRP contains the next steps for Minnesota Power’s EnergyForward plan including the economic idling of Taconite Harbor Units 1 and 2 in the fall of 2016 and the ceasing of coal-fired operations at Taconite Harbor in 2020. We do not expect to record any impairment charge as a result of the retirement of Taconite Harbor Unit 3, the ceasing of coal-fired operations at Taconite Harbor Units 1 and 2, or the conversion of Laskin. In addition, we expect to be able to continue depreciating these assets over their established remaining useful lives; however, we are unable to predict the impact of unanticipated regulatory outcomes resulting in changes to their established remaining useful lives. The remaining net book value for Taconite Harbor as of December 31, 2015 was approximately $100 million . We would seek recovery in a general rate case of additional depreciation expense as a result of material changes in useful lives. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt [Text Block] | SHORT-TERM AND LONG-TERM DEBT Short-Term Debt. As of December 31, 2015 , total short-term debt outstanding was $37.9 million ( $104.4 million as of December 31, 2014 ) and consisted of long-term debt due within one year and notes payable. As of December 31, 2015 , we had bank lines of credit aggregating $408.4 million ( $408.4 million as of December 31, 2014 ), the majority of which expire in November 2018. We had $12.4 million outstanding in standby letters of credit and $1.6 million outstanding in draws under our lines of credit as of December 31, 2015 ( $47.5 million in standby letters of credit and $3.7 million in draws outstanding as of December 31, 2014 ). Long-Term Debt. As of December 31, 2015 , total long-term debt outstanding was $1,568.7 million ( $1,272.8 million as of December 31, 2014 ). The aggregate amount of long-term debt maturing in 2016 is $36.3 million ( $193.6 million in 2017 ; $64.1 million in 2018 ; $56.5 million in 2019 ; $103.0 million in 2020 ; and $1,151.5 million thereafter). Substantially all of our regulated electric plant is subject to the lien of the mortgage collateralizing outstanding first mortgage bonds. The mortgages contain non-financial covenants customary in utility mortgages, including restrictions on our ability to incur liens, dispose of assets, and merge with other entities. On July 1, 2015, ALLETE Clean Energy assumed $60.9 million of long-term debt at fair value, including $5.9 million due within one year, in conjunction with ALLETE Clean Energy’s acquisition of Armenia Mountain. (See Note 7. Acquisitions.) On November 5, 2015, the assumed debt was refinanced when Armenia Mountain Wind, LLC (Armenia Mountain) entered into a Note Purchase and Guarantee Agreement (NPA) with AMW I Holding, LLC (Guarantor) and the purchasers named therein. Both Armenia Mountain and the Guarantor are wholly owned subsidiaries of ALLETE Clean Energy. Under the NPA, Armenia Mountain issued and sold $84.5 million of its 3.26 percent Senior Secured Notes (Notes) due December 31, 2024, to certain institutional accredited investors in the private placement market. The Notes were issued and sold in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, to institutional accredited investors. Interest on the Notes is payable semi-annually on June 30 and December 31 of each year, commencing on December 31, 2015. Armenia Mountain has the option to prepay all or a portion of the Notes at its discretion, subject to a make-whole provision; however, the Notes are redeemable at par, including accrued and unpaid interest, three months prior to the maturity date. The Notes are subject to additional terms and conditions which are customary for these types of transactions. Armenia Mountain used a portion of the proceeds to refinance the debt assumed in the Armenia Mountain acquisition and plans to use the remaining proceeds for general corporate purposes. Armenia Mountain’s obligations under the Notes are secured by its assets and a pledge by the Guarantor of its equity interests in Armenia Mountain. There is no recourse to ALLETE or any other subsidiary of ALLETE with respect to the Armenia Mountain’s obligations under the Notes other than to itself and its direct owner, the Guarantor, which guarantees payment under the Notes. NOTE 11. SHORT-TERM AND LONG-TERM DEBT (Continued) On August 25, 2015, the Company entered into a $125.0 million Term Loan Agreement with JPMorgan Chase Bank, N.A., as a lender and administrative agent, and Bank of America, N.A., as a lender (Term Loan). The Term Loan is an unsecured, single-draw loan that is due on August 25, 2017. The interest rate on the Term Loan is equal to LIBOR plus 0.625 percent . Proceeds from the Term Loan will be used for general corporate purposes, including the refinancing of the $75.0 million Term Loan Agreement due August 25, 2015. The Term Loan contains customary conditions of borrowing, events of default and affirmative and negative covenants. The Term Loan includes a financial covenant to maintain a ratio of total indebtedness to total capitalization (as defined therein) equal to or less than 65 percent . Indebtedness under the Term Loan may be accelerated upon the occurrence of an event of default, including cross-default to other indebtedness in excess of $35.0 million . On September 24, 2015, we issued $100.0 million of ALLETE first mortgage bonds (Bonds) in the private placement market as shown below: Maturity Date Principal Amount Interest Rate September 15, 2020 $40 Million 2.80% September 16, 2030 $60 Million 3.86% Interest on the Bonds is payable semi-annually on March 15 and September 15 of each year, commencing on March 15, 2016. The Company has the option to prepay all or a portion of the Bonds at its discretion, subject to a make-whole provision; however, the September 16, 2030, series of bonds is redeemable at par, including accrued and unpaid interest, six months prior to the maturity date. The Bonds are subject to additional terms and conditions which are customary for these types of transactions. The Company intends to use the proceeds from the sale of the Bonds to fund utility capital expenditures and/or for general corporate purposes. The Bonds were sold in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, to institutional accredited investors. NOTE 11. SHORT-TERM AND LONG-TERM DEBT (Continued) Long-Term Debt As of December 31 2015 2014 Millions First Mortgage Bonds 7.70% Series Due 2016 $20.0 $20.0 1.83% Series Due 2018 50.0 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 — 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 — 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 Unsecured Term Loan Variable Rate Due 2015 — 75.0 Unsecured Term Loan Variable Rate Due 2017 125.0 — Senior Unsecured Notes 5.99% Due 2017 50.0 50.0 Variable Demand Revenue Refunding Bonds Series 1997 A Due 2015 – 2020 13.5 24.6 Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 2025 27.8 27.8 Armenia Mountain Senior Secured Notes 3.26% Due 2024 83.3 — SWL&P First Mortgage Bonds 4.15% Series Due 2028 15.0 15.0 Other Long-Term Debt, 0.08% – 7.45% Due 2016 – 2037 68.4 59.1 Total Long-Term Debt 1,605.0 1,373.5 Less: Due Within One Year 36.3 100.7 Net Long-Term Debt $1,568.7 $1,272.8 NOTE 11. SHORT-TERM AND LONG-TERM DEBT (Continued) Financial Covenants. Our long-term debt arrangements contain customary covenants. In addition, our lines of credit and letters of credit supporting certain long-term debt arrangements contain financial covenants. Our compliance with financial covenants is not dependent on debt ratings. The most restrictive covenant requires ALLETE to maintain a ratio of indebtedness to total capitalization (as the amounts are calculated in accordance with the respective long-term debt arrangements) of less than or equal to 0.65 to 1.00 , measured quarterly. As of December 31, 2015 , our ratio was approximately 0.47 to 1.00 . Failure to meet this covenant would give rise to an event of default if not cured after notice from the lender, in which event ALLETE may need to pursue alternative sources of funding. Some of ALLETE’s debt arrangements contain “cross-default” provisions that would result in an event of default if there is a failure under other financing arrangements to meet payment terms or to observe other covenants that would result in an acceleration of payments due. As of December 31, 2015 , ALLETE was in compliance with its financial covenants. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments, Guarantees and Contingencies [Abstract] | |
Commitments, Guarantees and Contingencies [Text Block] | COMMITMENTS, GUARANTEES AND CONTINGENCIES Power Purchase Agreements. Our long-term PPAs have been evaluated under the accounting guidance for variable interest entities. We have determined that either we have no variable interest in the PPAs, or where we do have variable interests, we are not the primary beneficiary; therefore, consolidation is not required. These conclusions are based on the fact that we do not have both control over activities that are most significant to the entity and an obligation to absorb losses or receive benefits from the entity’s performance. Our financial exposure relating to these PPAs is limited to our capacity and energy payments. Square Butte PPA. Minnesota Power has a PPA with Square Butte that extends through 2026 (Agreement). It provides a long-term supply of energy to customers in Minnesota Power’s electric service territory and enables Minnesota Power to meet reserve requirements. Square Butte, a North Dakota cooperative corporation, owns a 455 MW coal-fired generating unit (Unit) near Center, North Dakota. The Unit is adjacent to a generating unit owned by Minnkota Power, a North Dakota cooperative corporation whose Class A members are also members of Square Butte. Minnkota Power serves as the operator of the Unit and also purchases power from Square Butte. Minnesota Power is obligated to pay its pro rata share of Square Butte’s costs based on its entitlement to Unit output. Minnesota Power’s output entitlement under the Agreement is 50 percent for the remainder of the Agreement, subject to the provisions of the Minnkota Power sales agreement described below. Minnesota Power’s payment obligation will be suspended if Square Butte fails to deliver any power, whether produced or purchased, for a period of one year. Square Butte’s costs consist primarily of debt service, operating and maintenance, depreciation and fuel expenses. As of December 31, 2015 , Square Butte had total debt outstanding of $376.4 million . Annual debt service for Square Butte is expected to be approximately $45 million in each of the next five years, 2016 through 2020 , of which Minnesota Power’s obligation is 50 percent . Fuel expenses are recoverable through Minnesota Power’s fuel adjustment clause and include the cost of coal purchased from BNI Energy under a long-term contract. Minnesota Power’s cost of power purchased from Square Butte during 2015 was $77.8 million ( $70.1 million in 2014 ; $71.1 million in 2013 ). This reflects Minnesota Power’s pro rata share of total Square Butte costs based on the 50 percent output entitlement. Included in this amount was Minnesota Power’s pro rata share of interest expense of $10.1 million in 2015 ( $10.5 million in 2014 ; $10.5 million in 2013 ). Minnesota Power’s payments to Square Butte are approved as a purchased power expense for ratemaking purposes by both the MPUC and the FERC. Minnkota Power Sales Agreement. Minnesota Power has a power sales agreement with Minnkota Power, which commenced June 1, 2014. Under the power sales agreement, Minnesota Power is selling a portion of its entitlement from Square Butte to Minnkota Power, resulting in Minnkota Power’s net entitlement increasing and Minnesota Power’s net entitlement decreasing until Minnesota Power’s share is eliminated at the end of 2025 . Of Minnesota Power’s 50 percent output entitlement, it sold to Minnkota Power approximately 28 percent in 2015 ( 23 percent in 2014). Minnkota Power PPA. In December 2012, Minnesota Power entered into a long-term PPA with Minnkota Power. Under this agreement, Minnesota Power will purchase 50 MW of capacity and the energy associated with that capacity from June 2016 through May 2020. The agreement includes a fixed capacity charge and energy pricing that escalates at a fixed rate annually over the term. Oliver Wind I and II PPAs. Minnesota Power entered into two long-term wind PPAs with an affiliate of NextEra Energy, Inc. to purchase the output from Oliver Wind I ( 50 MW) and Oliver Wind II ( 48 MW) wind energy facilities located near Center, North Dakota, that expire in 2031 and 2032, respectively. Each agreement provides for the purchase of all output from the facilities at fixed energy prices. There are no fixed capacity charges, and Minnesota Power only pays for energy as it is delivered. NOTE 12. COMMITMENTS, GUARANTEES AND CONTINGENCIES (Continued) Power Purchase Agreements (Continued) Manitoba Hydro PPAs. Minnesota Power has five long-term PPAs with Manitoba Hydro. The first PPA expires in May 2020 . Under this agreement, Minnesota Power is purchasing 50 MW of capacity and the energy associated with that capacity. Both the capacity price and the energy price are adjusted annually by the change in a governmental inflationary index. Under the second PPA, Minnesota Power is purchasing surplus energy through April 2022 . This energy-only agreement primarily consists of surplus hydro energy on Manitoba Hydro’s system that is delivered to Minnesota Power on a non-firm basis. The pricing is based on forward market prices. Under this agreement, Minnesota Power will purchase at least one million MWh of energy over the contract term. In May 2011, Minnesota Power and Manitoba Hydro signed a third PPA. This PPA provides for Minnesota Power to purchase 250 MW of capacity and energy from Manitoba Hydro for 15 years beginning in 2020. The agreement is subject to construction of additional transmission capacity between Manitoba and the U.S., along with construction of new hydroelectric generating capacity in Manitoba. In September 2015, Manitoba Hydro submitted the final preferred route and EIS for the additional transmission capacity in Canada to the Manitoba Conservation and Water Stewardship for regulatory approval. Construction of Manitoba Hydro’s hydroelectric generation facility commenced in 2014. The capacity price is adjusted annually until 2020 by the change in a governmental inflationary index. The energy price is based on a formula that includes an annual fixed price component adjusted for the change in a governmental inflationary index and a natural gas index, as well as market prices. In July 2014, Minnesota Power and Manitoba Hydro signed a fourth PPA that provides for Minnesota Power to purchase up to 133 MW of energy from Manitoba Hydro for 20 years beginning in 2020. The pricing under this PPA is based on forward market prices. The PPA was approved by the MPUC in an order dated January 30, 2015, and is subject to the construction of the GNTL. (See Great Northern Transmission Line. ) In October 2015, Minnesota Power and Manitoba Hydro signed a fifth PPA that provides for Minnesota Power to purchase 50 MW of capacity at fixed prices. The PPA begins in June 2017 and expires in May 2020. Great River Energy PPAs. In August 2014, January 2015 and October 2015, Minnesota Power and Great River Energy signed long-term PPAs that provide for Minnesota Power to purchase 50 MW of capacity and energy under the first PPA, 50 MW of capacity only under the second PPA, and 50 MW of capacity only under the third PPA. The first and second PPAs begin in June 2016 and expire in May 2020, and the third PPA begins in June 2017 and expires in May 2020. All of these contracts have fixed capacity pricing. The energy price in the first PPA is based on a formula that includes an annual fixed price component adjusted for changes in a natural gas index as well as market prices. TransAlta PPAs. In September 2015, Minnesota Power and TransAlta signed PPAs that provide for Minnesota Power to purchase 50 MW of energy during off-peak hours and 100 MW of energy during on-peak hours beginning in January 2017 and ending in December 2019. The energy prices are fixed throughout the terms of the PPAs. Basin Power Sales Agreements. Minnesota Power has an agreement to sell 100 MW of capacity and energy to Basin for a ten -year period which expires in April 2020. The capacity charge is based on a fixed monthly schedule with a minimum annual escalation provision. The energy charge is based on a fixed monthly schedule and provides for annual escalation based on the cost of fuel. The agreement allows Minnesota Power to recover a pro rata share of increased costs related to emissions that occur during the last five years of the contract. On July 9, 2015, Minnesota Power entered into an additional agreement to sell 100 MW of capacity only to Basin at fixed rates for a two -year period beginning in June 2016. Coal, Rail and Shipping Contracts. Minnesota Power has coal supply agreements providing for the purchase of a significant portion of its coal requirements through December 2016 and a portion of its coal requirements through December 2019. Minnesota Power also has coal transportation agreements in place for the delivery of a significant portion of its coal requirements through December 2018. The minimum annual payment obligation under these supply and transportation agreements is $40.7 million in 2016 , $27.6 million in 2017 , $28.3 million in 2018 and $1.8 million in 2019 . The delivered costs of fuel for Minnesota Power’s generation are recoverable from Minnesota Power’s utility customers through the fuel adjustment clause. On January 11, 2016, Arch Coal, Inc. (Arch Coal) elected to file for reorganization under Chapter 11 of the Bankruptcy Code and announced that it reached an agreement with the majority of its senior lenders on the terms of a financial restructuring. The United States Bankruptcy Court for the Eastern District of Missouri authorized Arch Coal to enter into and perform under coal contracts in the ordinary course of business. Leasing Agreements. BNI Energy is obligated to make lease payments for a dragline totaling $2.8 million annually for the lease term, which expires in 2027. BNI Energy has the option at the end of the lease term to renew the lease at fair market value, to purchase the dragline at fair market value, or to surrender the dragline and pay a $3.0 million termination fee. We also lease other properties and equipment under operating lease agreements with terms expiring through 2022. The aggregate amount of minimum lease payments for all operating leases is $14.0 million in 2016 , $12.6 million in 2017 , $11.1 million in 2018 , $9.9 million in 2019 , $6.9 million in 2020 and $23.2 million thereafter. Total lease expense was $17.3 million in 2015 ( $14.8 million in 2014 ; $13.8 million in 2013 ). Transmission . We continue to make investments in transmission opportunities that strengthen or enhance the transmission grid or take advantage of our geographical location between sources of renewable energy and end users. These include the GNTL and the CapX2020 initiative, as well as investments to enhance our own transmission facilities, investments in other transmission assets (individually or in combination with others), and our investment in ATC. Transmission Investments. Minnesota Power has an approved cost recovery rider in place for certain transmission investments and expenditures. In an order dated February 3, 2016, the MPUC approved Minnesota Power’s updated billing factor which allows Minnesota Power to charge retail customers on a current basis for the costs of constructing certain transmission facilities plus a return on the capital invested. As a result of the MPUC approval of the certificate of need for the GNTL on June 30, 2015, the project is eligible for cost recovery under the existing transmission cost recovery rider. Minnesota Power anticipates including its portion of the investments and expenditures for the GNTL in future transmission factor filings to include updated billing rates on customer bills. CapX2020. Minnesota Power is a participant in the CapX2020 initiative which represents an effort to ensure electric transmission and distribution reliability in Minnesota and the surrounding region for the future. CapX2020, which consists of electric cooperatives and municipal and investor-owned utilities, including Minnesota’s largest transmission owners, has assessed the transmission system and projected growth in customer demand for electricity through 2020. On April 2, 2015, the CapX2020 transmission line project from Fargo, North Dakota, to St. Cloud, Minnesota, was completed and placed in service. Minnesota Power previously participated in two additional CapX2020 projects which were completed and placed in service in 2011 and 2012. Minnesota Power invested approximately $100 million to complete the three transmission line projects. As future CapX2020 projects are identified, Minnesota Power may participate on a project-by-project basis. Great Northern Transmission Line (GNTL). As a condition of the long-term PPA signed in May 2011 with Manitoba Hydro, construction of additional transmission capacity is required. As a result, Minnesota Power and Manitoba Hydro proposed construction of the GNTL, an approximately 220 -mile 500 kV transmission line between Manitoba and Minnesota’s Iron Range in order to strengthen the electric grid, enhance regional reliability and promote a greater exchange of sustainable energy. The GNTL is subject to various federal and state regulatory approvals. In October 2013, a certificate of need application was filed with the MPUC which was approved in an order dated June 30, 2015. Based on this order, Minnesota Power’s portion of the investments and expenditures for the project are eligible for cost recovery under its existing transmission cost recovery rider and are anticipated to be included in future transmission factor filings. In an order dated December 17, 2015, the FERC approved our request to recover on construction work in progress related to the GNTL from Minnesota Power’s wholesale customers. In April 2014, Minnesota Power filed a route permit application with the MPUC and a request for a presidential permit to cross the U.S.-Canadian border with the U.S. Department of Energy. In a July 2014 order, the MPUC determined the route permit application to be complete. On October 30, 2015, the Minnesota Department of Commerce and the U.S. Department of Energy released the final EIS for the GNTL. On January 4, 2016, an administrative law judge recommended approval of the route permit for the GNTL. A final decision on the route permit by the MPUC is expected in the first quarter of 2016. Manitoba Hydro must also obtain regulatory and governmental approvals related to a new transmission line in Canada. In September 2015, Manitoba Hydro submitted the final preferred route and EIS for the transmission line in Canada to the Manitoba Conservation and Water Stewardship for regulatory approval. Construction of Manitoba Hydro’s hydroelectric generation facility commenced in 2014. Upon receipt of all applicable permits and approvals, construction of the GNTL is expected to begin by 2017 and to be completed in 2020. Total project cost in the U.S., including substation work, is estimated to be between $560 million and $710 million , depending on the final route of the line. Minnesota Power is expected to have majority ownership of the transmission line. Environmental Matters Our businesses are subject to regulation of environmental matters by various federal, state and local authorities. Currently, a number of regulatory changes to the Clean Air Act, the Clean Water Act and various waste management requirements are under consideration or have already been promulgated by both the EPA and state authorities. Minnesota Power’s facilities are subject to additional regulation under many of these proposals. In preparation and response to these regulations, Minnesota Power is reshaping its generation portfolio over time to reduce its reliance on coal, has installed cost-effective emission control technology, and advocates for sound science and policy during rulemaking implementation. We consider our businesses to be in substantial compliance with currently applicable environmental regulations and believe all necessary permits to conduct such operations have been obtained. We anticipate that although many of the state and federal environmental regulations have been finalized, or will be finalized in the near future, potential expenditures for future environmental matters may be material and may require significant capital investments. Minnesota Power has evaluated various environmental compliance scenarios using possible ranges of future environmental regulations to project power supply trends and impacts on customers. We review environmental matters on a quarterly basis. Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. Accruals are adjusted as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the Consolidated Balance Sheet at undiscounted amounts and exclude claims for recoveries from insurance or other third parties. Costs related to environmental contamination treatment and cleanup are charged to expense unless recoverable in rates from customers. Air. The electric utility industry is regulated both at the federal and state level to address air emissions. Minnesota Power’s generating facilities mainly burn low-sulfur western sub-bituminous coal. All of Minnesota Power’s coal-fired generating facilities are equipped with pollution control equipment such as scrubbers, baghouses and low NO X technologies. Under currently applicable environmental regulations, these facilities are substantially compliant with applicable emission requirements. New Source Review (NSR). In August 2008, Minnesota Power received a Notice of Violation (NOV) from the EPA asserting violations of the NSR requirements of the Clean Air Act at Boswell and Laskin Unit 2 between the years of 1981 and 2001. Minnesota Power received an additional NOV in April 2011 alleging that two projects undertaken at Rapids Energy Center in 2004 and 2005 should have been reviewed under the NSR requirements and that the Rapids Energy Center’s Title V permit was violated. Minnesota Power reached a settlement with the EPA regarding these NOVs and entered into a Consent Decree which was approved by the U.S. District Court for the District of Minnesota (Court) in September 2014. The Consent Decree provided for, among other requirements, more stringent emissions limits at all affected units, the option of refueling, retrofits or retirements at certain small coal units, and the addition of 200 MW of wind energy. Provisions of the Consent Decree require that, by no later than December 31, 2018, Boswell Units 1 and 2 must be retired, refueled, repowered, or emissions rerouted through existing emission control technology at Boswell. Minnesota Power estimates that if the units are not retired, capital expenditures could range between $20 million and $40 million . Minnesota Power’s 2015 IRP filed with the MPUC on September 1, 2015, outlined Minnesota Power’s preferred option to reroute emissions from Units 1 and 2 through existing emission control technology at Boswell Unit 3. We are required to notify the EPA no later than December 31, 2016, whether we will retire, refuel, repower or reroute Boswell Units 1 and 2. We believe that future capital expenditures or costs to retire would likely be eligible for recovery in rates over time subject to regulatory approval in a rate proceeding. Cross-State Air Pollution Rule (CSAPR). In April 2014, the U.S. Supreme Court issued an opinion reversing an August 2012 U.S. Court of Appeals for the D.C. Circuit decision that had vacated the CSAPR. The EPA filed a motion with the U.S. Court of Appeals for the D.C. Circuit in June 2014, to have the stay of CSAPR lifted and the CSAPR compliance deadlines tolled by three years. In October 2014, the U.S. Court of Appeals for the D.C. Circuit granted the EPA's motion, allowing the first compliance period, Phase I, to begin on January 1, 2015, with Phase II beginning in 2017. CSAPR requires a total of 28 states in the eastern half of the United States, including Minnesota, to reduce power plant emissions that contribute to ozone or fine particulate pollution in other states. CSAPR does not require installation of controls; rather it requires that facilities have sufficient allowances to cover their emissions on an annual basis. These allowances are allocated to facilities from each state’s annual budget and can be bought and sold. NOTE 12. COMMITMENTS, GUARANTEES AND CONTINGENCIES (Continued) Environmental Matters (Continued) In December 2014, the EPA distributed the CSAPR allowances to CSAPR-subject units for the Phase I years (2015 and 2016). Phase II allowances (2017-2020) have not been distributed. Based on our initial accounting of the NO x and SO 2 Phase I allowances already issued, and our review of the projected CSAPR Phase II allowances not yet issued, we currently expect projected generation levels and emission rates will result in compliance in both Phase I and Phase II. Mercury and Air Toxics Standards (MATS) Rule (formerly known as the Electric Generating Unit Maximum Achievable Control Technology (MACT) Rule). Under Section 112 of the Clean Air Act, the EPA is required to set emission standards for hazardous air pollutants (HAPs) for certain source categories. The EPA published the final MATS rule in the Federal Register in February 2012, addressing such emissions from coal-fired utility units greater than 25 MW. There are currently 187 listed HAPs that the EPA is required to evaluate for establishment of MACT standards. In the final MATS rule, the EPA established categories of HAPs, including mercury, trace metals other than mercury, acid gases, dioxin/furans, and organics other than dioxin/furans. The EPA also established emission limits for the first three categories of HAPs, and work practice standards for the remaining categories. Affected sources were required to be in compliance with the rule by April 2015. States had the authority to grant sources a one-year extension. The MPCA approved Minnesota Power’s request for an extension of the date of compliance for the Boswell Unit 4 environmental upgrade to April 1, 2016. Construction on the project to implement the Boswell Unit 4 mercury emissions reduction plan was completed with project costs totaling approximately $220 million through December 31, 2015 . Boswell Unit 3 is also subject to the MATS rule; however, investments and compliance work completed at Boswell Unit 3, including the emission reduction investments completed in 2009, meet the requirements of the MATS rule. The conversion of Laskin Units 1 and 2 to natural gas in June 2015 positioned those units for MATS compliance. In January 2014, the MPCA approved Minnesota Power’s application to extend the deadline for Taconite Harbor Unit 3 to comply with MATS to June 1, 2015, in order to align the retirement at Unit 3 with MISO’s resource planning year. Taconite Harbor Unit 3 was retired in May 2015. On June 29, 2015, the U.S. Supreme Court reversed and remanded an earlier U.S. Court of Appeals for the D.C. Circuit decision on the MATS rule. The U.S. Supreme Court ruled that it was unreasonable for the EPA to deem cost of compliance irrelevant in determining that regulation of emissions of hazardous air pollutants from power plants was “appropriate and necessary” under Section 112 of the Clean Air Act. The MATS rule remains in effect until the U.S. Court of Appeals for the D.C. Circuit acts on the remand. On December 15, 2015, the U.S. Court of Appeals for the D.C. Circuit rejected a motion by utilities and states to vacate the MATS rule, ordering the rule stayed while the EPA completes its review. The U.S. Supreme Court decision is not expected to have a material impact on Minnesota Power generation due to ongoing emission reduction obligations under the Minnesota Mercury Emissions Reduction Act and the Consent Decree. (See New Source Review. ) Minnesota Mercury Emissions Reduction Act/Rule. In order to comply with the 2006 Minnesota Mercury Emissions Reduction Act, which was incorporated into rules promulgated by the MPCA in September 2014, Minnesota Power was required to implement a mercury emissions reduction project for Boswell Unit 4 by December 31, 2018. The Boswell Unit 4 environmental upgrade discussed above (see Mercury and Air Toxics Standards (MATS) Rule ) fulfills the requirements of the Minnesota Mercury Emissions Reduction Act. EPA National Emission Standards for Hazardous Air Pollutants for Major Sources: Industrial, Commercial and Institutional Boilers and Process Heaters. A final rule issued by the EPA for Industrial Boiler MACT became effective in December 2012. Major existing sources had until January 31, 2016, to achieve compliance with the final rule. Minnesota Power’s Hibbard Renewable Energy Center and Rapids Energy Center are subject to this rule. We expect compliance to consist largely of adjustments to our operating practices; therefore the costs for complying with the final rule are not expected to be material. National Ambient Air Quality Standards (NAAQS). The EPA is required to review the NAAQS every five years. If the EPA determines that a state’s air quality is not in compliance with the NAAQS, the state is required to adopt plans describing how it will reduce emissions to attain the NAAQS. These state plans often include more stringent air emission limitations on sources of air pollutants than the NAAQS. Four NAAQS have either recently been revised or are currently proposed for revision, as described below. Ozone NAAQS. The EPA has proposed to more stringently control emissions that result in ground level ozone. In January 2010, the EPA proposed to revise the 2008 eight-hour ozone standard of 75 parts per billion (ppb) and to adopt a secondary standard for the protection of sensitive vegetation from ozone-related damage. On October 26, 2015, the EPA published the final rule in the Federal Register revising the eight-hour ozone standard to 70 ppb with a secondary standard also set at 70 ppb. All areas of Minnesota currently meet the new standard based on the most recent available ambient monitoring data. However, some areas in the metropolitan Twin Cities and southwest portion of the state are close to exceeding the standard, so voluntary efforts to reduce ozone continue in the state. No additional costs for compliance are anticipated at this time. NOTE 12. COMMITMENTS, GUARANTEES AND CONTINGENCIES (Continued) Environmental Matters (Continued) Particulate Matter NAAQS. The EPA finalized the Particulate Matter NAAQS in September 2006. Since then, the EPA has established more stringent 24-hour and annual average fine particulate matter (PM 2.5 ) standards; the 24-hour coarse particulate matter standard has remained unchanged. In December 2012, the EPA issued a final rule implementing a more stringent annual PM 2.5 standard, while retaining the current 24-hour PM 2.5 standard. To implement the new annual PM 2.5 standard, the EPA is also revising aspects of relevant monitoring, designation and permitting requirements. New projects and permits must comply with the new standard, which is generally demonstrated by modeling at the facility level. Under the final rule, states will be responsible for additional PM 2.5 monitoring, which will likely be accomplished by relocating or repurposing existing monitors. The EPA asked states to submit attainment designations by December 2013, based on already available monitoring data, and issued designations of the 2012 revised primary annual fine particulate attainment status in December 2014. The EPA designated the entire state of Minnesota as unclassifiable/attainment; however, Minnesota sources may ultimately be required to reduce their emissions to assist with attainment in neighboring states. Accordingly, the costs for complying with the final Particulate Matter NAAQS cannot be estimated at this time. SO 2 and NO 2 NAAQS. During 2010, the EPA finalized one-hour NAAQS for SO 2 and NO 2 . Ambient monitoring data indicates that Minnesota is likely in compliance with these standards; however, the one-hour SO 2 NAAQS also requires the EPA to evaluate additional modeling and monitoring considerations to determine attainment. In April 2012, the MPCA notified Minnesota Power that modeling had been suspended as a result of the EPA’s announcement that the SIP submittals would not require modeling demonstrations for states, such as Minnesota, where ambient monitors indicate compliance with the standard. The EPA notified states that their infrastructure SIPs for maintaining attainment of the standard were required to be submitted to the EPA for approval by June 2013. However, the State of Minnesota delayed completing the documents pending EPA guidance to states for preparing the SIP submittal. In September 2013 the EPA provided guidance to states regarding implementation of the one-hour NO 2 NAAQS and in June 2014, as clarified on February 3, 2015, the MPCA submitted a SIP revision to the EPA addressing the infrastructure requirements of Sections 110(a)(1) and 110(a)(2) of the Clean Air Act in regards to the one-hour NO 2 and SO 2 NAAQS, among other standards. The SIP stated that since the EPA determined in January 2012 that no area in the country is in violation of the one-hour NO 2 NAAQS, there are no nonattainment areas in the country for this pollutant, and therefore Minnesota’s NO 2 emissions cannot be significantly contributing to nonattainment in any other state. On October 20, 2015, the EPA published in the Federal Register an approval and partial disapproval of the June 2014 SIP revision. According to the MPCA, the partial disapproval is regarding state delegation of a program unrelated to the one-hour NAAQS for SO 2 and NO 2, and is not expected to require further action. As such, additional compliance costs for the one-hour NO 2 NAAQS are not expected at this time. On August 10, 2015, the EPA finalized the SO 2 data requirements rule (DRR) for the 2010 one-hour NAAQS to assist the states in implementing the standard. The rule sets emissions thresholds and exemptions for facilities that trigger modeling requirements. Boswell and Taconite Harbor are the only Minnesota Power generating facilities subject to the DRR. The MPCA has informed Minnesota Power that compliant SO 2 modeling recently completed at these facilities should satisfy the DRR obligations, and no further modeling should be required. The MPCA is in discussion with the EPA to confirm its conclusion. The MPCA is required to inform the EPA which sources are subject to the rule by January 15, 2016, and how each source will evaluate air quality by July 1, 2016. As such, additional compliance costs for the one-hour SO 2 NAAQS are not expected at this time. Class I Air Quality Petitions and Requests. In July 2014, the Fond du Lac Band of Lake Superior Chippewa (Fond du Lac Band) announced its intent to petition the EPA to redesignate its reservation air shed from Class II to Class I air quality pursuant to Section 164(c) of the Clean Air Act. The Fond du Lac Band does not currently possess authority to directly regulate air quality. Class I air shed status, if granted, would allow the Fond du Lac Band to impose more stringent Clean Air Act protections within the boundaries of the Fond du Lac reservation, including the reservation air shed, near Cloquet, Minnesota. Five other reservations across the U.S. have applied for and received Class I status. A public hearing was held by the Fond du Lac Band in October 2014, and the extended public comment period on the petition expired in November 2014. After the Fond du Lac Band prepares responses to the comments, it is anticipated to make a formal submittal request to the EPA. The Company has requested additional clarification from the Fond du Lac Band and the MPCA on the final regulatory structure that may arise from a Class I redesignation. NOTE 12. COMMITMENTS, GUARANTEES AND CONTINGENCIES (Continued) Environmental Matters (Continued) In May 2013, the Bad River Band of Lake Superior Chippewa (Bad River Band) announced its intent to petition the EPA to redesignate its reservation air shed, which is located approximately 100 miles east of Duluth, Minnesota, from Class II to Class I air quality pursuant to Section 164(c) of the Clean Air Act. The Class I analysis report was issued by the Bad River Band in January 2015 which was followed by public hearings in March 2015 and a public comment period ending in May 2015. After the Bad River Band prepares responses to the comments, it is also a |
Common Stock and Earnings Per S
Common Stock and Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock and Earnings Per Share [Abstract] | |
Common Stock and Earnings Per Share [Text Block] | COMMON STOCK AND EARNINGS PER SHARE Summary of Common Stock Shares Equity Thousands Millions Balance as of December 31, 2012 39,377 $784.7 Employee Stock Purchase Program 16 0.7 Invest Direct 395 18.5 Options and Stock Awards 301 17.9 Equity Issuance Program 1,312 63.4 Balance as of December 31, 2013 41,401 885.2 Employee Stock Purchase Program 18 0.8 Invest Direct 378 18.9 Options and Stock Awards 78 8.0 Equity Issuance Program 1,851 90.0 Forward Sale Agreement and Issuance 1,807 85.2 Contribution to Pension 396 19.5 Balance as of December 31, 2014 45,929 1,107.6 Employee Stock Purchase Program 18 0.9 Invest Direct 383 19.0 Options and Stock Awards 43 8.6 Equity Issuance Program 1,289 69.9 Forward Sale Agreement 1,413 65.4 Balance as of December 31, 2015 49,075 $1,271.4 NOTE 13. COMMON STOCK AND EARNINGS PER SHARE (Continued) Equity Issuance Program. We entered into a distribution agreement with Lampert Capital Markets, Inc., in 2008, as amended most recently in February 2015 , with respect to the issuance and sale of up to an aggregate of 13.6 million shares of our common stock, without par value, of which 4.0 million shares remain available for issuance. For the year ended December 31, 2015 , 1.3 million shares of common stock were issued under this agreement resulting in net proceeds of $69.9 million ( 1.9 million shares for net proceeds of $90.0 million for the year ended December 31, 2014 ; 1.3 million shares for net proceeds of $63.4 million for the year ended December 31, 2013). The shares sold January 1, 2013 through August 1, 2013, were offered and sold pursuant to Registration Statement No. 333-170289. On August 2, 2013, we filed Registration Statement No. 333-190335, pursuant to which the remaining shares will continue to be offered for sale from time to time. Earnings Per Share. We compute basic earnings per share using the weighted average number of shares of common stock outstanding during each period. The difference between basic and diluted earnings per share, if any, arises from outstanding stock options, non-vested restricted stock units, performance share awards granted under our Executive Long-Term Incentive Compensation Plan and common shares under the forward sale agreement (described below). In accordance with accounting standards for earnings per share, no options to purchase shares of common stock were excluded from the computation of diluted earnings per share in 2015 , 2014 and 2013 . Forward Sale Agreement and Issuance of Common Stock . In February 2014, ALLETE entered into a confirmation of forward sale agreement (Agreement) with a forward counterparty in connection with a public offering of 2.8 million shares of ALLETE common stock. Pursuant to the Agreement, the forward counterparty (or its affiliate) borrowed 2.8 million shares of ALLETE common stock from third parties and sold them to the underwriters. The forward sale price was $48.01 per share, subject to adjustment as provided in the Agreement. In September 2014, ALLETE physically settled a portion of its obligations under the Agreement by delivering approximately 1.4 million shares of common stock in exchange for cash proceeds of $65.0 million and on February 4, 2015, ALLETE physically settled the remaining portion of its obligation under the Agreement by delivering approximately 1.4 million shares of common stock for cash proceeds of $65.4 million . In connection with the public offering of the 2.8 million shares, ALLETE granted the underwriters an option to purchase up to an additional 0.4 million shares of ALLETE common stock (the option shares). The underwriters exercised the option in full and in March 2014, the Company issued and sold the option shares to the underwriters at a price to ALLETE equal to the initial forward sale price for proceeds of $20.2 million . Contributions to Pension. No contributions were made to the pension plan for the year ended December 31, 2015. In 2014, we contributed approximately 0.4 million shares of ALLETE common stock to our pension plan, which had an aggregate value of $19.5 million when contributed; no contributions were made in 2013. These shares of ALLETE common stock were contributed in reliance upon an exemption available pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. Reconciliation of Basic and Diluted Earnings Per Share Dilutive Year Ended December 31 Basic Securities Diluted Millions Except Per Share Amounts 2015 Net Income Attributable to ALLETE $141.1 $141.1 Average Common Shares 48.3 0.1 48.4 Earnings Per Share $2.92 $2.92 2014 Net Income Attributable to ALLETE $124.8 $124.8 Average Common Shares 42.9 0.2 43.1 Earnings Per Share $2.91 $2.90 2013 Net Income Attributable to ALLETE $104.7 $104.7 Average Common Shares 39.7 0.1 39.8 Earnings Per Share $2.64 $2.63 |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income [Text Block] | OTHER INCOME Year Ended December 31 2015 2014 2013 Millions AFUDC–Equity $3.3 $7.8 $4.6 Gain on Sale of Available-for-sale Securities 0.1 0.2 2.2 Investments and Other Income 1.3 0.6 2.5 Total Other Income $4.7 $8.6 $9.3 |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense [Text Block] | INCOME TAX EXPENSE Income Tax Expense Year Ended December 31 2015 2014 2013 Millions Current Tax Expense Federal (a) — $1.1 — State (a) $0.2 2.9 $0.1 Total Current Tax Expense 0.2 4.0 0.1 Deferred Tax Expense Federal 19.4 25.3 22.9 State 6.5 8.2 6.5 Investment Tax Credit Amortization (0.8 ) (0.8 ) (0.8 ) Total Deferred Tax Expense 25.1 32.7 28.6 Total Income Tax Expense $25.3 $36.7 $28.7 (a) For the years ended December 31, 2015, 2014, and 2013, the federal and state current tax expense was minimal due to NOLs which resulted from the bonus depreciation provisions of the Protecting Americans from Tax Hikes Act of 2015, the Tax Increase Prevention Act of 2014 and the American Taxpayer Relief Act of 2012. The federal and state NOLs will be carried forward to offset future taxable income. The year ended December 31, 2014 includes the resolution of an Internal Revenue Service examination for tax years 2005 through 2009 and the impacts of initiatives implemented on the 2013 federal and state tax returns to utilize tax carryforwards that may have expired. Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense Year Ended December 31 2015 2014 2013 Millions Income Before Non-Controlling Interest and Income Taxes $166.8 $162.2 $133.4 Statutory Federal Income Tax Rate 35 % 35 % 35 % Income Taxes Computed at 35 percent Statutory Federal Rate $58.4 $56.8 $46.7 Increase (Decrease) in Tax Due to: State Income Taxes – Net of Federal Income Tax Benefit 4.4 7.2 4.3 Regulatory Differences for Utility Plant (0.6 ) (3.5 ) (2.2 ) Production Tax Credits (37.0 ) (23.7 ) (19.2 ) Other 0.1 (0.1 ) (0.9 ) Total Income Tax Expense $25.3 $36.7 $28.7 The effective tax rate on income was 15.2 percent for 2015 ( 22.6 percent for 2014 ; 21.5 percent for 2013 ). The 2015, 2014, and 2013 effective rates were primarily impacted by production tax credits and by the deduction for AFUDC–Equity (included in Regulatory Differences for Utility Plant in the preceding table). NOTE 15. INCOME TAX EXPENSE (Continued) Deferred Tax Assets and Liabilities As of December 31 2015 2014 Millions Deferred Tax Assets Employee Benefits and Compensation $105.4 $102.2 Property Related 126.6 102.7 NOL Carryforwards 186.4 156.5 Tax Credit Carryforwards 164.8 95.7 Power Purchase Agreements 73.0 51.8 Other 21.8 17.0 Gross Deferred Tax Assets 678.0 525.9 Deferred Tax Asset Valuation Allowance (31.6 ) (22.1 ) Total Deferred Tax Assets $646.4 $503.8 Deferred Tax Liabilities Property Related $1,053.0 $848.8 Regulatory Asset for Benefit Obligations 89.4 89.9 Unamortized Investment Tax Credits 26.0 10.3 Partnership Basis Differences 47.8 41.9 Other 10.0 16.1 Total Deferred Tax Liabilities $1,226.2 $1,007.0 Net Deferred Income Taxes $579.8 $503.2 Recorded as: Net Current Deferred Tax Assets (a) — $7.5 Net Long-Term Deferred Tax Liabilities $579.8 510.7 Net Deferred Income Taxes $579.8 $503.2 (a) For discussion of classification of deferred income taxes see Note 1. Operations and Significant Accounting Policies - New Accounting Standards - Balance Sheet Classification of Deferred Taxes. NOL and Tax Credit Carryforwards As of December 31 2015 2014 Millions Federal NOL Carryforwards (a) $493.0 $413.7 Federal Tax Credit Carryforwards $113.6 $59.3 State NOL Carryforwards (a) $228.6 $184.7 State Tax Credit Carryforwards (b) $20.0 $14.7 (a) Pretax amounts. (b) Net of a $31.2 million valuation allowance as of December 31, 2015 ( $21.7 million as of December 31, 2014 ). The federal NOL and tax credit carryforward periods expire between 2030 and 2035. We expect to fully utilize the federal NOL and federal tax credit carryforwards; therefore no federal valuation allowance has been recognized as of December 31, 2015. The state NOL and tax credit carryforward periods expire between 2025 and 2045. We have established a valuation allowance against certain state NOL and tax credits that we do not expect to utilize before their expiration. NOTE 15. INCOME TAX EXPENSE (Continued) Gross Unrecognized Income Tax Benefits 2015 2014 2013 Millions Balance at January 1 $2.0 $1.2 $2.7 Additions for Tax Positions Related to the Current Year 0.5 — 0.1 Additions for Tax Positions Related to Prior Years 0.7 1.0 1.3 Reductions for Tax Positions Related to Prior Years (0.7 ) — — Reductions for Settlements — — (2.9 ) Lapse of Statute (0.1 ) (0.2 ) — Balance as of December 31 $2.4 $2.0 $1.2 Unrecognized tax benefits are the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the “more-likely-than-not” criteria. The unrecognized tax benefit balance includes permanent tax positions which, if recognized would affect the annual effective income tax rate. In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. The gross unrecognized tax benefits as of December 31, 2015 , included $0.5 million of net unrecognized tax benefits which, if recognized, would affect the annual effective income tax rate. The decrease in the unrecognized tax benefit balance of $ 2.9 million in 2013 was due to the removal of our uncertain tax positions for positions effectively settled with the Internal Revenue Service for tax years 2005 through 2009. As of December 31, 2015 , we had no accrued interest ( none as of December 31, 2014 ; $0.5 million as of December 31, 2013 ) related to unrecognized tax benefits included on our Consolidated Balance Sheet due to our NOL carryforwards. We classify interest related to unrecognized tax benefits as interest expense and tax-related penalties in operating expenses on our Consolidated Statement of Income. Interest expense related to unrecognized tax benefits on our Consolidated Statement of Income was immaterial in 2015 ( immaterial in 2014 , and in 2013 ). There were no penalties recognized in 2015 , 2014 or 2013 . The unrecognized tax benefit amounts have been presented as reductions to the tax benefits associated with NOL and tax credit carryforwards on our Consolidated Balance Sheet. No material changes to unrecognized tax benefits are expected during the next 12 months. ALLETE and its subsidiaries file a consolidated federal income tax return as well as combined and separate state income tax returns in various jurisdictions. ALLETE has no open federal or state audits, and is no longer subject to federal examination for years before 2012 or state examination for years before 2011. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Text Block] | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in Accumulated Other Comprehensive Loss. Comprehensive income (loss) is the change in common shareholders’ equity during a period from transactions and events from non-owner sources, including net income. The amounts recorded to accumulated other comprehensive loss include unrealized gains and losses on available-for-sale securities, defined benefit pension and other postretirement items, consisting of deferred actuarial gains or losses and prior service costs or credits, and gains and losses on derivatives accounted for as cash flow hedges. NOTE 16. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)(Continued) Changes in accumulated other comprehensive loss, net of tax, for the years ended December 31, 2015 , 2014 and 2013 , were as follows: Unrealized Gain (Loss) on Available-for-sale Securities Defined Benefit Pension, Other Postretirement Items (a) Gain (Loss) on Cash Flow Hedge Total Millions Balance as of December 31, 2012 $(0.1) $(21.5) $(0.4) $(22.0) Other Comprehensive Income Before Reclassifications 1.3 3.2 0.1 4.6 Amounts Reclassified From Accumulated Other Comprehensive Loss (1.3 ) 1.6 — 0.3 Net Other Comprehensive Income — 4.8 0.1 4.9 Balance as of December 31, 2013 (0.1 ) (16.7 ) (0.3 ) (17.1 ) Other Comprehensive Income (Loss) Before Reclassifications (0.3 ) (5.2 ) 0.2 (5.3 ) Amounts Reclassified From Accumulated Other Comprehensive Loss 0.1 1.2 — 1.3 Net Other Comprehensive Income (Loss) (0.2 ) (4.0 ) 0.2 (4.0 ) Balance as of December 31, 2014 (0.3 ) (20.7 ) (0.1 ) (21.1 ) Other Comprehensive Income (Loss) Before Reclassifications (0.4 ) (4.3 ) 0.1 (4.6 ) Amounts Reclassified From Accumulated Other Comprehensive Loss (0.1 ) 1.3 — 1.2 Net Other Comprehensive Income (Loss) (0.5 ) (3.0 ) 0.1 (3.4 ) Balance as of December 31, 2015 $(0.8) $(23.7) — $(24.5) (a) Defined benefit pension and other postretirement items excluded from our Regulated Operations are recognized in accumulated other comprehensive loss and are subsequently reclassified out of accumulated other comprehensive loss as components of net periodic pension and other postretirement benefit expense. (See Note 17. Pension and Other Postretirement Benefit Plans.) |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans [Text Block] | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS We have noncontributory union and non-union defined benefit pension plans covering eligible employees. The plans provide defined benefits based on years of service and final average pay. We made no contributions to the plans in 2015 ( $19.5 million in 2014 ; none in 2013 ). We also have a defined contribution RSOP covering substantially all employees. The 2015 plan year employer contributions, which are made through the employee stock ownership plan portion of the RSOP, totaled $9.0 million ( $9.1 million for the 2014 plan year; $8.4 million for the 2013 plan year). (See Note 13. Common Stock and Earnings Per Share and Note 18. Employee Stock and Incentive Plans.) In 2006, the non-union defined benefit pension plan was amended to suspend further crediting of service to the plan and to close the plan to new participants. In conjunction with those amendments, contributions were increased to the RSOP. In 2010, the Minnesota Power union defined benefit pension plan was amended to close the plan to new participants beginning February 1, 2011. We have postretirement health care and life insurance plans covering eligible employees. In 2010, our postretirement health plan was amended to close the plan to employees hired after January 31, 2011. The full eligibility requirement was also amended in 2010, to require employees to be at least age 55 with 10 years of participation in the plan. In 2014, our postretirement life plan was amended to close the plan to non-union employees retiring after December 31, 2015. The postretirement health and life plans are contributory with participant contributions adjusted annually. Postretirement health and life benefits are funded through a combination of Voluntary Employee Benefit Association trusts (VEBAs), established under section 501(c)(9) of the Internal Revenue Code, and irrevocable grantor trusts. In 2015 , no contributions were made to the VEBAs ( none in 2014 ; $10.8 million in 2013 ) and no contributions were made to the grantor trusts ( none in 2014 ; $2.0 million in 2013 ). NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) Management considers various factors when making funding decisions such as regulatory requirements, actuarially determined minimum contribution requirements, and contributions required to avoid benefit restrictions for the pension plans. Contributions are based on estimates and assumptions which are subject to change. We expect to contribute $2.0 million to the defined benefit pension plan and expect no contributions to the defined benefit postretirement health and life plan in 2016 . Accounting for defined benefit pension and postretirement benefit plans requires that employers recognize on a prospective basis the funded status of their defined benefit pension and other postretirement plans on their balance sheet and recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost. The defined benefit pension and postretirement health and life benefit expense (credit) recognized annually by our regulated utilities are expected to be recovered (refunded) through rates filed with our regulatory jurisdictions. As a result, these amounts that are required to otherwise be recognized in accumulated other comprehensive income have been recognized as a long-term regulatory asset (regulatory liability) on our Consolidated Balance Sheet, in accordance with the accounting standards for the effect of certain types of regulation applicable to our Regulated Operations. The defined benefit pension and postretirement health and life benefit expense (credits) associated with our other operations are recognized in accumulated other comprehensive income. Pension Obligation and Funded Status At December 31 2015 2014 Millions Accumulated Benefit Obligation $665.0 $661.4 Change in Benefit Obligation Obligation, Beginning of Year $714.5 $622.8 Service Cost 10.1 8.3 Interest Cost 29.9 29.8 Actuarial (Gain) Loss (31.2 ) 72.6 Benefits Paid (40.2 ) (36.9 ) Participant Contributions 26.7 17.9 Obligation, End of Year $709.8 $714.5 Change in Plan Assets Fair Value, Beginning of Year $544.2 $501.6 Actual Return on Plan Assets (10.8 ) 41.0 Employer Contribution (a) 28.1 38.5 Benefits Paid (40.2 ) (36.9 ) Fair Value, End of Year $521.3 $544.2 Funded Status, End of Year $(188.5) $(170.3) Net Pension Amounts Recognized in Consolidated Balance Sheet Consist of: Current Liabilities $(1.3) $(1.2) Non-Current Liabilities $(187.2) $(169.1) (a) Includes Participant Contributions noted above. NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) The pension costs that are reported as a component within our Consolidated Balance Sheet, reflected in long-term regulatory assets or liabilities and accumulated other comprehensive income, consist of the following: Unrecognized Pension Costs As of December 31 2015 2014 Millions Net Loss $252.7 $250.4 Prior Service Cost — 0.2 Total Unrecognized Pension Costs $252.7 $250.6 Components of Net Periodic Pension Expense Year Ended December 31 2015 2014 2013 Millions Service Cost $10.1 $8.3 $9.9 Interest Cost 29.9 29.8 26.0 Expected Return on Plan Assets (40.7 ) (38.2 ) (35.2 ) Amortization of Loss 17.9 14.2 21.5 Amortization of Prior Service Cost 0.2 0.3 0.3 Net Pension Expense $17.4 $14.4 $22.5 Other Changes in Pension Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities Year Ended December 31 2015 2014 Millions Net Loss $20.2 $69.8 Amortization of Prior Service Cost (0.2 ) (0.3 ) Amortization of Loss (17.9 ) (14.2 ) Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities $2.1 $55.3 Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets As of December 31 2015 2014 Millions Projected Benefit Obligation $709.8 $714.5 Accumulated Benefit Obligation $665.0 $661.4 Fair Value of Plan Assets $521.3 $544.2 NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) Postretirement Health and Life Obligation and Funded Status At December 31 2015 2014 Millions Change in Benefit Obligation Obligation, Beginning of Year $170.9 $151.9 Service Cost 4.3 3.4 Interest Cost 7.2 7.3 Actuarial (Gain) Loss (14.4 ) 18.1 Benefits Paid (10.7 ) (8.9 ) Participant Contributions 2.9 2.6 Plan Amendments — (2.9 ) Plan Curtailments — (0.6 ) Obligation, End of Year $160.2 $170.9 Change in Plan Assets Fair Value, Beginning of Year $163.2 $157.0 Actual Return on Plan Assets (3.5 ) 11.6 Employer Contribution 1.5 1.1 Participant Contributions 2.9 2.6 Benefits Paid (10.7 ) (9.1 ) Fair Value, End of Year $153.4 $163.2 Funded Status, End of Year $(6.8) $(7.7) Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet Consist of: Non-Current Assets $6.4 $6.6 Current Liabilities $(1.0) $(0.9) Non-Current Liabilities $(12.2) $(13.4) According to the accounting standards for retirement benefits, only assets in the VEBAs are treated as plan assets in the above table for the purpose of determining funded status. In addition to the postretirement health and life assets reported in the previous table, we had $17.4 million in irrevocable grantor trusts included in Other Investments on our Consolidated Balance Sheet at December 31, 2015 ( $17.9 million at December 31, 2014 ). The postretirement health and life costs that are reported as a component within our Consolidated Balance Sheet, reflected in regulatory long-term assets or liabilities and accumulated other comprehensive income, consist of the following: Unrecognized Postretirement Health and Life Costs As of December 31 2015 2014 Millions Net Loss $6.5 $6.9 Prior Service Credit (7.6 ) (10.6 ) Total Unrecognized Postretirement Health and Life Credit $(1.1) $(3.7) NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) Components of Net Periodic Postretirement Health and Life Expense Year Ended December 31 2015 2014 2013 Millions Service Cost $4.3 $3.4 $3.9 Interest Cost 7.2 7.3 6.8 Expected Return on Plan Assets (10.9 ) (10.3 ) (9.7 ) Amortization of Loss 0.4 0.5 1.6 Amortization of Prior Service Credit (3.0 ) (2.5 ) (2.5 ) Effect of Plan Settlement (a) — — (1.6 ) Net Postretirement Health and Life Credit $(2.0) $(1.6) $(1.5) (a) Result of the termination of a legacy benefit plan. Other Changes in Postretirement Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities Year Ended December 31 2015 2014 Millions Net Loss — $16.4 Prior Service Credit Arising During the Period — (3.0 ) Amortization of Prior Service Credit $3.0 2.5 Amortization of Loss (0.4 ) (0.5 ) Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities $2.6 $15.4 Estimated Future Benefit Payments Pension Postretirement Health and Life Millions 2016 $39.8 $8.3 2017 $40.6 $8.6 2018 $41.1 $8.8 2019 $41.7 $9.1 2020 $41.8 $9.3 Years 2021 – 2025 $216.2 $48.0 The pension and postretirement health and life costs recorded in regulatory long-term assets or liabilities and accumulated other comprehensive income expected to be recognized as a component of net pension and postretirement benefit costs for the year ending December 31, 2016 , are as follows: Pension Postretirement Health and Life Millions Net (Gain) Loss $(8.4) $0.2 Prior Service Credit — (2.9) Total Pension and Postretirement Health and Life Credit $(8.4) $(2.7) NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) Assumptions Used to Determine Benefit Obligation As of December 31 2015 2014 Discount Rate Pension 4.72% 4.30% Postretirement Health and Life 4.73% 4.33% Rate of Compensation Increase 3.70 - 4.30% 3.70 - 4.30% Health Care Trend Rates Trend Rate 6.50% 6.75% Ultimate Trend Rate 5.00% 5.00% Year Ultimate Trend Rate Effective 2022 2022 Assumptions Used to Determine Net Periodic Benefit Costs Year Ended December 31 2015 2014 2013 Discount Rate 4.30 - 4.33% 4.93 - 4.96% 4.10 - 4.13% Expected Long-Term Return on Plan Assets Pension 8.00% 8.00% 8.25% Postretirement Health and Life 6.40 - 8.00% 6.40 - 8.00% 6.60 - 8.25% Rate of Compensation Increase 3.70 - 4.30% 3.70 - 4.30% 4.30 - 4.60% In establishing the expected long-term rate of return on plan assets, we determine the long-term historical performance of each asset class, adjust these for current economic conditions, and utilizing the target allocation of our plan assets, forecast the expected long-term rate of return. The discount rate is computed using a yield curve adjusted for ALLETE’s projected cash flows to match our plan characteristics. The yield curve is determined using high-quality long-term corporate bond rates at the valuation date. We believe the adjusted discount curve used in this comparison does not materially differ in duration and cash flows from our pension obligation. The Company utilizes actuarial assumptions about mortality to calculate the pension and postretirement health and life benefit obligations. In 2014, revised mortality tables were released, and the Company adopted updated mortality tables as of December 31, 2014. Sensitivity of a One-Percentage-Point 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 $1.9 $(1.5) Effect on Postretirement Health and Life Obligation $19.3 $(15.9) Actual Plan Asset Allocations Pension Postretirement Health and Life (a) 2015 2014 2015 2014 Equity Securities 47 % 48 % 57 % 58 % Debt Securities 39 % 39 % 35 % 34 % Private Equity 8 % 8 % 8 % 8 % Real Estate 6 % 5 % — — 100 % 100 % 100 % 100 % (a) Includes VEBAs and irrevocable grantor trusts. There were no shares of ALLETE common stock included in pension plan equity securities as of December 31, 2015 ( no shares as of December 31, 2014 ). NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) In 2013, the defined benefit pension plan adopted a dynamic asset allocation strategy (glide path) that increases the invested allocation to fixed income assets as the funding level of the plan increases to better match the sensitivity of the plan’s assets and liabilities to changes in interest rates. This is expected to reduce the volatility of reported pension plan expenses. The postretirement health and life plans’ assets continue to be diversified to achieve strong returns within managed risk. Equity securities are diversified among domestic companies with large, mid and small market capitalizations, as well as investments in international companies. The majority of debt securities are made up of investment grade bonds. Below are the current targeted allocations as of December 31, 2015 . Plan Asset Target Allocations Pension Postretirement Health and Life (a) Equity Securities 56 % 60 % Debt Securities 35 % 37 % Real Estate 9 % 3 % 100 % 100 % (a) Includes VEBAs and irrevocable grantor trusts. Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs, which are used to measure fair value, are prioritized through the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes various U.S. equity securities, public mutual funds, and futures. These instruments are valued using the closing price from the applicable exchange or whose value is quoted and readily traded daily. Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs. This category includes various bonds and non-public funds whose underlying investments may be Level 1 or Level 2 securities. Level 3 — Significant inputs that are generally less observable from objective sources. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value. This category includes private equity funds and real estate valued through external appraisal processes. Valuation methodologies incorporate pricing models, discounted cash flow models, and similar techniques which utilize capitalization rates, discount rates, cash flows and other factors. NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) Pension Fair Value Fair Value as of December 31, 2015 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $33.9 $42.1 — $76.0 U.S. Mid-cap Growth (a) 14.2 17.7 — 31.9 U.S. Small-cap (a) 14.5 17.9 — 32.4 Mutual Funds 8.4 — — 8.4 International 44.7 42.0 — 86.7 Debt Securities: Mutual Funds 0.1 — — 0.1 Fixed Income 2.7 185.3 — 188.0 Cash and Cash Equivalents 25.6 — — 25.6 Other Types of Investments: Private Equity Funds — — $43.3 43.3 Real Estate — — 28.9 28.9 Total Fair Value of Assets $144.1 $305.0 $72.2 $521.3 (a) The underlying investments classified under U.S. Equity Securities consist of money market funds (Level 1) and actively-managed funds (Level 2), which are combined with futures, and settle daily, to achieve the returns of the U.S. Equity Securities Large-cap, Mid-cap Growth, and Small-cap funds. Our exposure with respect to these investments includes both the futures and the underlying investments. Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Real Estate Millions Balance as of December 31, 2014 $43.3 $28.9 Actual Return on Plan Assets 2.6 2.9 Purchases, Sales, and Settlements – Net (2.6 ) (2.9 ) Balance as of December 31, 2015 $43.3 $28.9 NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) Fair Value (Continued) Fair Value as of December 31, 2014 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $32.1 $56.4 — $88.5 U.S. Mid-cap Growth (a) 13.6 23.9 — 37.5 U.S. Small-cap (a) 13.9 24.4 — 38.3 International 46.1 45.9 — 92.0 Debt Securities: Mutual Funds 0.1 — — 0.1 Fixed Income 2.7 201.0 — 203.7 Cash and Cash Equivalents 11.9 — — 11.9 Other Types of Investments: Private Equity Funds — — $43.3 43.3 Real Estate — — 28.9 28.9 Total Fair Value of Assets $120.4 $351.6 $72.2 $544.2 (a) The underlying investments classified under U.S. Equity Securities consist of money market funds (Level 1) and actively-managed funds (Level 2), which are combined with futures, and settle daily, to achieve the returns of the U.S. Equity Securities Large-cap, Mid-cap Growth, and Small-cap funds. Our exposure with respect to these investments includes both the futures and the underlying investments. Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Real Estate Millions Balance as of December 31, 2013 $46.8 $26.5 Actual Return on Plan Assets 1.2 2.8 Purchases, Sales, and Settlements – Net (4.7 ) (0.4 ) Balance as of December 31, 2014 $43.3 $28.9 Postretirement Health and Life Fair Value Fair Value as of December 31, 2015 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $28.2 — — $28.2 U.S. Mid-cap Growth (a) 19.1 — — 19.1 U.S. Small-cap (a) 12.1 — — 12.1 International 26.8 — — 26.8 Debt Securities: Mutual Funds 45.2 — — 45.2 Fixed Income — $8.4 — 8.4 Cash and Cash Equivalents 1.6 — — 1.6 Other Types of Investments: Private Equity Funds — — $12.0 12.0 Total Fair Value of Assets $133.0 $8.4 $12.0 $153.4 (a) The underlying investments classified under U.S. Equity Securities consist of mutual funds (Level 1). NOTE 17. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Continued) Fair Value (Continued) Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Millions Balance as of December 31, 2014 $12.9 Actual Return on Plan Assets 1.2 Purchases, Sales, and Settlements – Net (2.1 ) Balance as of December 31, 2015 $12.0 Fair Value as of December 31, 2014 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $29.3 — — $29.3 U.S. Mid-cap Growth (a) 20.0 — — 20.0 U.S. Small-cap (a) 12.6 — — 12.6 International 30.6 — — 30.6 Debt Securities: Mutual Funds 44.5 — — 44.5 Fixed Income — $9.9 — 9.9 Cash and Cash Equivalents 3.4 — — 3.4 Other Types of Investments: Private Equity Funds — — $12.9 12.9 Total Fair Value of Assets $140.4 $9.9 $12.9 $163.2 (a) The underlying investments classified under U.S. Equity Securities consist of mutual funds (Level 1). Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Millions Balance as of December 31, 2013 $13.1 Actual Return on Plan Assets 1.4 Purchases, Sales, and Settlements – Net (1.6 ) Balance as of December 31, 2014 $12.9 Accounting and disclosure requirements for the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Act) provide guidance for employers that sponsor postretirement health care plans that provide prescription drug benefits. We provide a fully insured postretirement health benefit, including a prescription drug benefit, which qualifies us for a federal subsidy under the Act. The federal subsidy is reflected in the premiums charged to us by the insurance company. |
Employee Stock and Incentive Pl
Employee Stock and Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock and Incentive Plans [Text Block] | EMPLOYEE STOCK AND INCENTIVE PLANS Employee Stock Ownership Plan. We sponsor an ESOP within the RSOP. Eligible employees may contribute to the RSOP plan as of their date of hire. In 1990, the ESOP issued a $75.0 million note (term not to exceed 25 years at 10.25 percent) to use as consideration for 2.8 million shares (1.9 million shares adjusted for stock splits) of our newly issued common stock. The note was refinanced in 2006 at 6 percent and subsequently matured in December 2015. The ESOP shares were initially pledged as collateral for the debt. As the debt was repaid, shares were released from collateral and allocated to participants based on the proportion of debt service paid in the year. As shares were released from collateral, we reported compensation expense equal to the current market price of the shares less dividends on allocated shares. The dividends received by the ESOP are distributed to participants. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. With the maturity of the note, ESOP employer allocations will be funded with contributions paid in either cash or the issuance of ALLETE common stock at the Company’s discretion. ESOP compensation expense was $9.0 million in 2015 ( $9.1 million in 2014 ; $8.4 million in 2013 ). According to the accounting standards for stock compensation, unallocated shares of ALLETE common stock held and purchased by the ESOP were treated as unearned ESOP shares and not considered outstanding for earnings per share computations. ESOP shares are included in earnings per share computations after they are allocated to participants. As of December 31 2015 2014 2013 Millions ESOP Shares Allocated 1.8 1.9 2.0 Unallocated — 0.3 0.5 Total 1.8 2.2 2.5 Fair Value of Unallocated Shares — $13.2 $24.1 Stock-Based Compensation. Stock Incentive Plan. Under our Executive Long-Term Incentive Compensation Plan (Executive Plan), share-based awards may be issued to key employees through a broad range of methods, including non-qualified and incentive stock options, performance shares, performance units, restricted stock, restricted stock units, stock appreciation rights and other awards. There are 1.1 million shares of common stock reserved for issuance under the Executive Plan, with 0.9 million of these shares available for issuance as of December 31, 2015 . We currently have the following types of share-based awards outstanding: Non-Qualified Stock Options . These options allow for the purchase of shares of common stock at a price equal to the market value of our common stock at the date of grant. Options become exercisable beginning one year after the grant date, with one-third vesting each year over three years. Options may be exercised up to ten years following the date of grant. In the case of qualified retirement, death or disability, options vest immediately and the period over which the options can be exercised is three years. Employees have up to three months to exercise vested options upon voluntary termination or involuntary termination without cause. All options are canceled upon termination for cause. All options vest immediately upon retirement, death, disability or a change of control, as defined in the award agreement. We determine the fair value of options using the Black-Scholes option-pricing model. The estimated fair value of options, including the effect of estimated forfeitures, is recognized as expense on the straight-line basis over the options’ vesting periods, or the accelerated vesting period if the employee is eligible for retirement. Stock options have not been granted since 2008. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the grant date. Expected volatility is estimated based on the historic volatility of our stock and the stock of our peer group companies. We utilize historical option exercise and employee pre-vesting termination data to estimate the option life. The dividend growth rate is based upon historical growth rates in our dividends. NOTE 18. EMPLOYEE STOCK AND INCENTIVE PLANS (Continued) Performance Shares. Under the performance share awards plan, the number of shares earned is contingent upon attaining specific market goals over a three -year performance period. Market goals are measured by total shareholder return relative to a group of peer companies. In the case of qualified retirement, death, or disability during a performance period, a pro rata portion of the award will be earned at the conclusion of the performance period based on the market goals achieved. In the case of termination of employment for any reason other than qualified retirement, death, or disability, no award will be earned. If there is a change in control, a pro rata portion of the award will be paid based on the greater of actual performance up to the date of the change in control or target performance. The fair value of these awards is determined by the probability of meeting the total shareholder return goals. Compensation cost is recognized over the three -year performance period based on our estimate of the number of shares which will be earned by the award recipients. Restricted Stock Units. Under the restricted stock units plan, shares for participants eligible for retirement vest monthly over a three -year period. For participants not eligible for retirement, shares vest at the end of the three -year period. In the case of qualified retirement, death or disability, a pro rata portion of the award will be earned. In the case of termination of employment for any reason other than qualified retirement, death or disability, no award will be earned. If there is a change in control, a pro rata portion of the award will be earned. The fair value of these awards is equal to the grant date fair value. Compensation cost is recognized over the three -year vesting period based on our estimate of the number of shares which will be earned by the award recipients. Employee Stock Purchase Plan (ESPP). Under our ESPP, eligible employees may purchase ALLETE common stock at a 5 percent discount from the market price. Because the discount is not greater than 5 percent , we are not required to apply fair value accounting to these awards. RSOP . The RSOP is a contributory defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and qualifies as an employee stock ownership plan and profit sharing plan. The RSOP provides eligible employees an opportunity to save for retirement. The following share-based compensation expense amounts were recognized in our Consolidated Statement of Income for the periods presented. Share-Based Compensation Expense Year Ended December 31 2015 2014 2013 Millions Performance Shares $1.8 $1.6 $1.7 Restricted Stock Units 0.8 0.7 0.7 Total Share-Based Compensation Expense $2.6 $2.3 $2.4 Income Tax Benefit $1.1 $1.0 $1.0 There were no capitalized share-based compensation costs during the years ended December 31, 2015 , 2014 or 2013 . As of December 31, 2015 , the total unrecognized compensation cost for the performance share awards and restricted stock units not yet recognized in our Consolidated Statements of Income was $1.9 million and $1.1 million , respectively. These amounts are expected to be recognized over a weighted-average period of 1.7 years for performance share awards and 1.9 years for restricted stock units. NOTE 18. EMPLOYEE STOCK AND INCENTIVE PLANS (Continued) Non-Qualified Stock Options. The following table presents information regarding our outstanding stock options. 2015 2014 2013 Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Outstanding as of January 1 66,279 $44.39 108,299 $44.10 395,678 $42.28 Granted (a) — — — — — — Exercised (24,456 ) $44.52 (42,020 ) $43.65 (287,379 ) $41.60 Forfeited (2,169 ) $42.93 — — — — Outstanding as of December 31 39,654 $44.39 66,279 $44.39 108,299 $44.10 Exercisable as of December 31 39,654 $44.39 66,279 $44.39 108,299 $43.17 (a) Stock options have not been granted since 2008. The weighted-average grant-date intrinsic value of options granted in 2008 was $6.18 . Cash received from non-qualified stock options exercised was approximately $1.1 million in 2015 . The intrinsic value of a stock award is the amount by which the fair value of the underlying stock exceeds the exercise price of the award. The total intrinsic value of options exercised was $0.2 million during 2015 ( $0.4 million in 2014 ; $2.2 million in 2013 ). Exercise Price As of December 31, 2015 $39.10 $44.15 $48.65 Options Outstanding and Exercisable: Number Outstanding and Exercisable 16,620 2,306 20,728 Weighted Average Remaining Contractual Life (Years) 2.1 0.1 1.1 Weighted Average Exercise Price $39.10 $44.15 $48.65 Aggregate Intrinsic Value (Millions) $0.2 — $0.1 Performance Shares. The following table presents information regarding our non-vested performance shares. 2015 2014 2013 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 1 119,635 $48.26 114,765 $47.02 107,899 $40.73 Granted (a) 43,583 $58.95 47,992 $46.47 45,830 $52.15 Awarded — — (36,515 ) $42.01 (18,605 ) $35.10 Unearned Grant Award (36,670 ) $45.41 — — (18,606 ) $35.10 Forfeited (7,008 ) $53.49 (6,607 ) $48.29 (1,753 ) $47.26 Non-vested as of December 31 119,540 $52.72 119,635 $48.26 114,765 $47.02 (a) Shares granted include accrued dividends. There were 51,586 performance shares granted in January 2016 for the three -year performance period ending in 2018 . The ultimate issuance is contingent upon the attainment of certain goals of ALLETE during the performance periods. The grant date fair value of the performance shares granted was $2.7 million . There were no performance shares awarded in February 2016 for the three -year performance period ending in 2015 . NOTE 18. EMPLOYEE STOCK AND INCENTIVE PLANS (Continued) Restricted Stock Units. The following table presents information regarding our available restricted stock units. 2015 2014 2013 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 53,888 $44.47 55,982 $40.85 56,415 $36.61 Granted (a) 26,702 $54.81 19,645 $48.44 21,440 $43.41 Awarded (19,464 ) $41.44 (18,860 ) $37.64 (20,939 ) $32.03 Forfeited (3,432 ) $51.52 (2,879 ) $45.92 (934 ) $41.02 Available as of December 31 57,694 $49.86 53,888 $44.47 55,982 $40.85 (a) Shares granted include accrued dividends. There were 17,396 restricted stock units granted in January 2016 for the vesting period ending in 2018 . The grant date fair value of the restricted stock units granted was $0.9 million . There were 17,608 restricted stock units awarded in February 2016 . The grant date fair value of the shares awarded was $0.8 million . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) [Text Block] | QUARTERLY FINANCIAL DATA (UNAUDITED) Information for any one quarterly period is not necessarily indicative of the results which may be expected for the year. Quarter Ended Mar. 31 Jun. 30 Sept. 30 Dec. 31 Millions Except Earnings Per Share 2015 Operating Revenue $320.0 $323.3 $462.5 $380.6 Operating Income $56.4 $39.5 $85.2 $29.6 Net Income Attributable to ALLETE $39.9 $22.5 $60.4 $18.3 Earnings Per Share of Common Stock Basic $0.85 $0.46 $1.24 $0.37 Diluted $0.85 $0.46 $1.23 $0.37 2014 Operating Revenue $296.5 $260.7 $288.9 $290.7 Operating Income $48.3 $28.2 $60.8 $51.5 Net Income Attributable to ALLETE $33.5 $16.8 $41.6 $32.9 Earnings Per Share of Common Stock Basic $0.81 $0.40 $0.97 $0.73 Diluted $0.80 $0.40 $0.97 $0.73 |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II [Text Block] | Schedule II ALLETE Valuation and Qualifying Accounts and Reserves 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 2013 Trade Accounts Receivable $1.0 $1.3 — $1.2 $1.1 Finance Receivables – Long-Term $0.6 — — — $0.6 2014 Trade Accounts Receivable $1.1 $1.8 — $1.8 $1.1 Finance Receivables – Long-Term $0.6 — — — $0.6 2015 Trade Accounts Receivable $1.1 $1.6 — $1.7 $1.0 Finance Receivables – Long-Term $0.6 — — — $0.6 Deferred Asset Valuation Allowance 2013 Deferred Tax Assets $2.4 $5.6 — — $8.0 2014 Deferred Tax Assets $8.0 $14.1 — — $22.1 2015 Deferred Tax Assets $22.1 $9.5 — — $31.6 (a) Includes uncollectible accounts written off. |
Operations and Significant Ac29
Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Preparation [Policy Text Block] | References in this report to “we,” “us,” and “our” are to ALLETE and its subsidiaries, collectively. We prepare our financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make informed judgments, best estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. |
Subsequent Events [Policy Text Block] | The Company performed an evaluation of subsequent events for potential recognition and disclosure through the time of the financial statements issuance. |
Principles of Consolidation [Policy Text Block] | Our Consolidated Financial Statements include the accounts of ALLETE and all of our majority-owned subsidiary companies. All material intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications [Policy Text Block] | As a result of recent acquisitions, certain financial statement captions have been added and we have reclassified certain prior-period amounts on our Consolidated Balance Sheet and Consolidated Statement of Income to conform to the presentation for the current period. |
Business Segments [Policy Text Block] | During the year ended December 31, 2015, management updated our reportable segment presentation to reflect the manner in which we operate, assess, and allocate resources after our recent acquisitions. We now present three reportable segments, Regulated Operations, ALLETE Clean Energy, and U.S. Water Services. Our segments were determined in accordance with the guidance on segment reporting. We measure performance of our operations through budgeting and monitoring of contributions to consolidated net income by each business segment. |
Cash and Cash Equivalents [Policy Text Block] | We consider all investments purchased with original maturities of three months or less to be cash equivalents. |
Accounts Receivable [Policy Text Block] | Accounts receivable are reported on the Consolidated Balance Sheet net of an allowance for doubtful accounts. The allowance is based on our evaluation of the receivable portfolio under current conditions, overall portfolio quality, review of specific problems and such other factors that, in our judgment, deserve recognition in estimating losses. |
Long-Term Finance Receivables [Policy Text Block] | Long-term finance receivables relating to our real estate operations are collateralized by property sold, accrue interest at market-based rates and are net of an allowance for doubtful accounts. We assess delinquent finance receivables by comparing the balance of such receivables to the estimated fair value of the collateralized property. If the fair value of the property is less than the finance receivable, we record a reserve for the difference. We estimate fair value based on recent property tax assessed values or current appraisals. |
Available-for-Sale Securities [Policy Text Block] | Available-for-sale securities are recorded at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss), net of tax. Unrealized losses that are other than temporary are recognized in earnings. We use the specific identification method as the basis for determining the cost of securities sold. Our policy is to review available-for-sale securities for other than temporary impairment on a quarterly basis by assessing such factors as the share price trends and the impact of overall market conditions. (See Note 9. Investments.) We account for our available-for-sale portfolio in accordance with the guidance for certain investments in debt and equity securities. |
Inventories [Policy Text Block] | Inventories are stated at the lower of cost or market. Amounts removed from inventories in our Regulated Operations and ALLETE Clean Energy segments are recorded on an average cost basis. Amounts removed from inventories in our U.S. Water Services and Corporate and Other segments are recorded on an average cost, first-in, first-out or specific identification basis. |
Property, Plant and Equipment [Policy Text Block] | Property, plant and equipment are recorded at original cost and are reported on the balance sheet net of accumulated depreciation. Expenditures for additions, significant replacements, improvements and major plant overhauls are capitalized; maintenance and repair costs are expensed as incurred. Gains or losses on non-rate base property, plant and equipment are recognized when they are retired or otherwise disposed. When regulated utility property, plant and equipment are retired or otherwise disposed, no gain or loss is recognized in accordance with the accounting standards for the effects of certain types of regulation. Our Regulated Operations capitalize AFUDC, which includes both an interest and equity component. AFUDC represents the cost of both debt and equity funds used to finance utility plant additions during construction periods. AFUDC amounts capitalized are included in rate base and are recovered from customers as the related property is depreciated. Upon MPUC approval of cost recovery, the recognition of AFUDC ceases. (See Note 3. Property, Plant and Equipment. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of assets. |
Impairment of Long-Lived Assets [Policy Text Block] | Land inventory is accounted for as held for use and is recorded at cost or estimated fair value. We review our long-lived assets, which include the legacy real estate assets of ALLETE Properties, for indicators of impairment in accordance with the accounting standards for property, plant and equipment on a quarterly basis. In accordance with the accounting standards for property, plant and equipment, if indicators of impairment exist, we test our real estate assets for recoverability by comparing the carrying amount of the asset to the undiscounted future net cash flows expected to be generated by the asset. Cash flows are assessed at the lowest level of identifiable cash flows, which may include a bulk sale of its entire portfolio, the sale of each individual land parcel, combining various parcels, or other combinations thereof. Our consideration of possible impairment for our real estate assets requires us to make estimates of future net cash flows on an undiscounted basis. The undiscounted future net cash flows are impacted by trends and factors known to us at the time they are calculated and our expectations related to: management’s best estimate of future sales prices; holding period and timing of sales; method of disposition; and future expenditures necessary to maintain the operations, including community development district assessments, property taxes and normal operation and maintenance costs. These estimates and expectations are specific to each land parcel, may vary among each land parcel, and may change in the future. If the excess of undiscounted future net cash flows over the carrying amount of a property is small, there is a greater risk of future impairment in the event of such future changes and any resulting impairment charges could be material. |
Derivatives [Policy Text Block] | ALLETE is exposed to certain risks relating to its business operations that can be managed through the use of derivative instruments. ALLETE may enter into derivative instruments to manage those risks including interest rate risk related to certain variable-rate borrowings. |
Stock-Based Compensation [Policy Text Block] | We apply the fair value recognition guidance for share-based payments. Under this guidance, we recognize stock-based compensation expense for all share-based payments granted, net of an estimated forfeiture rate. (See Note 18. Employee Stock and Incentive Plans.) Non-Qualified Stock Options . These options allow for the purchase of shares of common stock at a price equal to the market value of our common stock at the date of grant. Options become exercisable beginning one year after the grant date, with one-third vesting each year over three years. Options may be exercised up to ten years following the date of grant. In the case of qualified retirement, death or disability, options vest immediately and the period over which the options can be exercised is three years. Employees have up to three months to exercise vested options upon voluntary termination or involuntary termination without cause. All options are canceled upon termination for cause. All options vest immediately upon retirement, death, disability or a change of control, as defined in the award agreement. We determine the fair value of options using the Black-Scholes option-pricing model. The estimated fair value of options, including the effect of estimated forfeitures, is recognized as expense on the straight-line basis over the options’ vesting periods, or the accelerated vesting period if the employee is eligible for retirement. Stock options have not been granted since 2008. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the grant date. Expected volatility is estimated based on the historic volatility of our stock and the stock of our peer group companies. We utilize historical option exercise and employee pre-vesting termination data to estimate the option life. The dividend growth rate is based upon historical growth rates in our dividends. NOTE 18. EMPLOYEE STOCK AND INCENTIVE PLANS (Continued) Performance Shares. Under the performance share awards plan, the number of shares earned is contingent upon attaining specific market goals over a three -year performance period. Market goals are measured by total shareholder return relative to a group of peer companies. In the case of qualified retirement, death, or disability during a performance period, a pro rata portion of the award will be earned at the conclusion of the performance period based on the market goals achieved. In the case of termination of employment for any reason other than qualified retirement, death, or disability, no award will be earned. If there is a change in control, a pro rata portion of the award will be paid based on the greater of actual performance up to the date of the change in control or target performance. The fair value of these awards is determined by the probability of meeting the total shareholder return goals. Compensation cost is recognized over the three -year performance period based on our estimate of the number of shares which will be earned by the award recipients. Restricted Stock Units. Under the restricted stock units plan, shares for participants eligible for retirement vest monthly over a three -year period. For participants not eligible for retirement, shares vest at the end of the three -year period. In the case of qualified retirement, death or disability, a pro rata portion of the award will be earned. In the case of termination of employment for any reason other than qualified retirement, death or disability, no award will be earned. If there is a change in control, a pro rata portion of the award will be earned. The fair value of these awards is equal to the grant date fair value. Compensation cost is recognized over the three -year vesting period based on our estimate of the number of shares which will be earned by the award recipients. Employee Stock Purchase Plan (ESPP). Under our ESPP, eligible employees may purchase ALLETE common stock at a 5 percent discount from the market price. Because the discount is not greater than 5 percent , we are not required to apply fair value accounting to these awards. RSOP . The RSOP is a contributory defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and qualifies as an employee stock ownership plan and profit sharing plan. The RSOP provides eligible employees an opportunity to save for retirement. |
Goodwill [Policy Text Block] | Goodwill is the excess of the purchase price (consideration transferred) over the estimated fair value of net assets of acquired businesses. In accordance with GAAP, goodwill is not amortized. To align with the annual budgeting and forecasting process, goodwill is assessed annually in the fourth quarter for impairment and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. The estimated fair value is generally determined using a discounted cash flow analysis. To align with the annual budgeting and forecasting process, the Company assesses the impairment of goodwill annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. The test for impairment requires us to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. |
Intangible Assets [Policy Text Block] | Intangible assets include customer relationships, patents, non-compete agreements and trademarks and trade names. Intangible assets with definite lives consist of customer relationships, which are amortized using an attrition model, and patents and non-compete agreements, which are amortized on a straight-line basis with estimated useful lives ranging from approximately 3 years to approximately 22 years. We review definite-lived intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets consist of trademarks and trade names, which are tested for impairment annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Impairment is calculated as the excess of the asset’s carrying amount over its fair value. Fair value is generally determined using a discounted cash flow analysis. The Company assesses indefinite-lived intangible assets for impairment annually in the fourth quarter. The Company also assesses indefinite-lived and definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying amount over its undiscounted future cash flows. If the carrying amount is not recoverable, an impairment loss is recorded based on the amount by which the carrying amount exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. |
Environmental Liabilities [Policy Text Block] | We review environmental matters on a quarterly basis. Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Accruals are adjusted as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the Consolidated Balance Sheet at undiscounted amounts and exclude claims for recoveries from insurance or other third parties. Costs related to environmental contamination treatment and cleanup are expensed unless recoverable in rates from customers. (See Note 12. Commitments, Guarantees and Contingencies.) We review environmental matters on a quarterly basis. Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. Accruals are adjusted as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the Consolidated Balance Sheet at undiscounted amounts and exclude claims for recoveries from insurance or other third parties. Costs related to environmental contamination treatment and cleanup are charged to expense unless recoverable in rates from customers. |
Revenue Recognition [Policy Text Block] | Regulated Operations utility rates are under the jurisdiction of Minnesota, Wisconsin and federal regulatory authorities. Customers are billed on a cycle basis. Revenue is accrued for service provided but not yet billed. Regulated utility electric rates include adjustment clauses that: (1) bill or credit customers for fuel and purchased energy costs above or below the base levels in rate schedules; (2) bill retail customers for the recovery of conservation improvement program expenditures not collected in base rates; and (3) bill customers for the recovery of certain transmission, renewable energy and environmental expenditures. Fuel and purchased power expense is deferred to match the period in which the revenue for fuel and purchased power expense is collected from customers pursuant to the fuel adjustment clause. Revenue from our cost recovery riders (renewable resources, transmission and environmental improvement) is accounted for in accordance with the accounting standards for alternative revenue programs. These standards allow for recognizing revenue under an alternative revenue program if the program is established by an order from the utility’s regulatory commission, the order allows automatic adjustment of future rates, the amount of the revenue recognized is objectively determinable and probable of recovery, and the revenue will be collected within 24 months following the end of the annual period in which it is recognized. Revenue recognized using the alternative revenue program guidance is included in Operating Revenue on our Consolidated Statement of Income and Regulatory Assets on our Consolidated Balance Sheet until it is subsequently collected from customers. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition (Continued) Minnesota Power participates in MISO. MISO transactions are accounted for on a net hourly basis in each of the day-ahead and real-time markets. Minnesota Power records net sales in Operating Revenue and net purchases in Fuel and Purchased Power Expense on our Consolidated Statement of Income. The revenue and charges from MISO related to serving retail and municipal electric customers are recorded on a net basis as Fuel and Purchased Power Expense. ALLETE Clean Energy recognizes revenue from the sale of energy under long-term PPAs. Revenue is recognized when delivered to an agreed upon point or production is curtailed at the request of its customers at specified prices. As part of the wind energy facilities acquisitions in 2014 and 2015, ALLETE Clean Energy assumed various PPAs that were above or below estimated market prices at the time of acquisition and amortizes the resulting differences between contract prices and estimated market prices to Operating Revenue. U.S. Water Services recognizes revenue from the sale of products when the earnings process is complete. This generally occurs when products are shipped to the customer in accordance with the contract or purchase order, ownership and risk of loss have passed to the customer, collectibility is reasonably assured, and pricing is fixed and determinable. Revenue from services is recognized as the services are performed. Corporate and Other BNI Energy recognizes coal sales when delivered at the cost of production plus a specified profit per ton of coal delivered. ALLETE Properties records full profit recognition on sales of real estate upon closing, provided that cash collections are at least 20 percent of the contract price and the other requirements under the guidance for sales of real estate are met. From time to time, certain contracts with customers allow us to receive participation revenue from land sales to third parties if various formula-based criteria are achieved. |
Unamortized Discount and Premium on Debt [Policy Text Block] | Discount and premium on debt are deferred and amortized over the terms of the related debt instruments using a method which approximates the effective interest method. |
Income Taxes [Policy Text Block] | ALLETE and its subsidiaries file a consolidated federal income tax return as well as combined and separate state income tax returns. We account for income taxes using the liability method in accordance with the accounting standards for income taxes. Under the liability method, deferred income tax assets and liabilities are established for all temporary differences in the book and tax basis of assets and liabilities, based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. Due to the effects of regulation on Minnesota Power and SWL&P, certain adjustments made to deferred income taxes are, in turn, recorded as regulatory assets or liabilities. Federal investment tax credits have been recorded as deferred credits and are being amortized to income tax expense over the service lives of the related property. In accordance with the accounting standards for uncertainty in income taxes, we are required to recognize in our financial statements the largest tax benefit of a tax position that is “more-likely-than-not” to be sustained on audit, based solely on the technical merits of the position as of the reporting date. The term “more-likely-than-not” means more than 50 percent likely. (See Note 15. Income Tax Expense.) Unrecognized tax benefits are the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the “more-likely-than-not” criteria. The unrecognized tax benefit balance includes permanent tax positions which, if recognized would affect the annual effective income tax rate. In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. We classify interest related to unrecognized tax benefits as interest expense and tax-related penalties in operating expenses on our Consolidated Statement of Income. |
Excise Taxes [Policy Text Block] | We collect excise taxes from our customers levied by government entities. These taxes are stated separately on the billing to the customer and recorded as a liability to be remitted to the government entity. We account for the collection and payment of these taxes on a net basis. |
Purchase Accounting [Policy Text Block] | In accordance with the authoritative accounting guidance, the purchase price of an acquired business is generally allocated to the assets acquired and liabilities assumed at their estimated fair values on the date of acquisition. Any unallocated purchase price amount is recognized as goodwill on the Consolidated Balance Sheet if it exceeds the estimated fair value and as a bargain purchase gain on the Consolidated Income Statement if it is below the estimated fair value. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment, and the utilization of independent valuation experts as well as involves the use of significant estimates and assumptions with respect to the timing and amounts of future cash inflows and outflows, discount rates, market prices and asset lives, among other items. The judgments made in the determination of the estimated fair value assigned to the assets acquired and liabilities assumed, as well as the estimated useful life of each asset and the duration of each liability, can materially impact the financial statements in periods after acquisition, such as through depreciation and amortization expense. (See Note 7. Acquisitions.) The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. Fair value measurements were valued primarily using the replacement cost method and determined that the assets acquired amounted to cash of $3.6 million and construction in process of $23.4 million . The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. Fair value measurements were valued primarily using the discounted cash flow method. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. The acquisition was accounted for as a business combination and the purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition. The purchase price accounting, which was finalized in 2015, is reflected in the following table. Fair value measurements were valued primarily using the discounted cash flow method. |
New Accounting Standards [Policy Text Block] | Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . In April 2014, the FASB issued an accounting standard update modifying the criteria for determining which disposals should be presented as discontinued operations and modifying the related disclosure requirements. Additionally, the new guidance requires that a business which qualifies as held for sale upon acquisition should be reported as discontinued operations. The new guidance was effective beginning in the first quarter of 2015, and will be applied prospectively to disposals and classifications of disposal groups as held for sale. The impact of this guidance on our consolidated financial position, results of operations or cash flows will be evaluated when future transactions arise. Revenue from Contracts with Customers. In May 2014, the FASB issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required regarding customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance was to have been effective for the Company beginning in the first quarter of 2017 using one of two prescribed retrospective methods. On July 9, 2015, the FASB decided to defer the effective date of the standard by one year which will make the guidance effective for the Company beginning in the first quarter of 2018. Early adoption is permitted beginning in the first quarter of 2017 for public companies. The Company is evaluating the impact of the amended revenue recognition guidance on the Company’s Consolidated Financial Statements. Presentation of Debt Issuance Costs. In April 2015, the FASB issued revised guidance addressing the presentation requirements for debt issuance costs. Under the revised guidance, all costs incurred to issue debt are to be presented on the Consolidated Balance Sheet as a direct deduction from the carrying amount of that debt liability. The revised guidance is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of this update is not expected to have a material impact on our Consolidated Financial Statements. Simplifying the Measurement of Inventory. In July 2015, the FASB issued an accounting standard which requires entities that measure inventory using the first-in, first-out or average cost methods to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This accounting guidance is effective for the Company beginning in the first quarter of 2017; early adoption is permitted. The adoption of this update is not expected to have a material impact on our Consolidated Financial Statements. Balance Sheet Classification of Deferred Taxes. In November 2015, the FASB issued an accounting standard to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent instead of separating deferred taxes into current and noncurrent amounts. This accounting guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. During the fourth quarter of 2015, we elected to prospectively adopt the new standard, reclassifying $39.4 million of current deferred income tax assets to noncurrent deferred income tax liabilities on our Consolidated Balance Sheet for 2015. Previously reported periods have not been adjusted. The adoption of this guidance had no impact on our Consolidated Statement of Income, Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows. |
Asset Retirement Obligations [Policy Text Block] | We recognize, at fair value, obligations associated with the retirement of certain tangible, long-lived assets that result from the acquisition, construction, development or normal operation of the asset. Asset retirement obligations (ARO) relate primarily to the decommissioning of our coal-fired and wind energy facilities and land reclamation at BNI Energy, and are included in Other Non-Current Liabilities on our Consolidated Balance Sheet. The associated retirement costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the asset. Long-standing ratemaking practices approved by applicable state and federal regulatory commissions have allowed provisions for future plant removal costs in depreciation rates. These plant removal cost recoveries are classified either as AROs or as a regulatory liability for non-AROs. To the extent annual accruals for plant removal costs differ from accruals under approved depreciation rates, a regulatory asset has been established in accordance with the guidance for AROs. |
Regulatory Assets and Liabilities [Policy Text Block] | Our regulated utility operations are subject to accounting guidance for the effect of certain types of regulation. Regulatory assets represent incurred costs that have been deferred as they are probable for recovery in customer rates. Regulatory liabilities represent obligations to make refunds to customers and amounts collected in rates for which the related costs have not yet been incurred. The Company assesses quarterly whether regulatory assets and liabilities meet the criteria for probability of future recovery or deferral. No regulatory assets or liabilities are currently earning a return. The recovery, refund or credit to rates for these regulatory assets and liabilities will occur over the periods either specified by the applicable regulatory authority or over the corresponding period related to the asset or liability. |
Equity Method Investments, Policy [Policy Text Block] | We account for our investment in ATC under the equity method of accounting. |
Land Inventory [Policy Text Block] | Land inventory is accounted for as held for use and is recorded at cost, unless the carrying value is determined not to be recoverable in accordance with the accounting standards for property, plant and equipment, in which case the land inventory is written down to estimated fair value. Land values are reviewed for indicators of impairment on a quarterly basis and a $36.3 million non-cash impairment was recorded for the year ended December 31, 2015 ( none for the years ended December 31, 2014 and 2013 ). |
Fair Value Measurement [Policy Text Block] | The acquisition contingent consideration was recorded at the acquisition date at its estimated fair value. The acquisition date fair value is measured based on the consideration expected to be transferred, discounted to present value. The discount rate is determined at the time of measurement in accordance with generally accepted valuation methods. The fair value of the acquisition contingent consideration is remeasured to arrive at estimated fair value each reporting period with the change in fair value recognized as income or expense in our Consolidated Statement of Income. Changes to the fair value of the acquisition contingent consideration can result from changes in discount rates, or in the timing and amount of earnings estimates. Using different valuation assumptions, including earnings projections or discount rates, may result in different fair value measurements and expense (or income) in future periods. Non-financial assets such as equity method investments, goodwill, intangible assets, and property, plant and equipment are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment is recognized. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs, which are used to measure fair value, are prioritized through the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Each asset and liability is classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of these assets and liabilities and their placement within the fair value hierarchy levels. The estimated fair value of Cash and Cash Equivalents listed on the Consolidated Balance Sheet approximates the carrying amount and therefore is excluded from the recurring fair value measures in the following tables. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs, which are used to measure fair value, are prioritized through the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). |
Fair Value Transfers [Policy Text Block] | The Company’s policy is to recognize transfers in and transfers out as of the actual date of the event or change in circumstances that caused the transfer. |
Property, Plant and Equipment Impairment [Policy Text Block] | The Company assesses the impairment of property, plant, and equipment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment assets may not be recoverable. |
Power Purchase Agreements [Policy Text Block] | Our long-term PPAs have been evaluated under the accounting guidance for variable interest entities. We have determined that either we have no variable interest in the PPAs, or where we do have variable interests, we are not the primary beneficiary; therefore, consolidation is not required. These conclusions are based on the fact that we do not have both control over activities that are most significant to the entity and an obligation to absorb losses or receive benefits from the entity’s performance. |
Earnings Per Share [Policy Text Block] | We compute basic earnings per share using the weighted average number of shares of common stock outstanding during each period. The difference between basic and diluted earnings per share, if any, arises from outstanding stock options, non-vested restricted stock units, performance share awards granted under our Executive Long-Term Incentive Compensation Plan and common shares under the forward sale agreement (described below). In accordance with accounting standards for earnings per share, no options to purchase shares of common stock were excluded from the computation of diluted earnings per share in 2015 , 2014 and 2013 . |
Pension and Other Postretirement Benefit Plans [Policy Text Block] | Accounting for defined benefit pension and postretirement benefit plans requires that employers recognize on a prospective basis the funded status of their defined benefit pension and other postretirement plans on their balance sheet and recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost. The defined benefit pension and postretirement health and life benefit expense (credit) recognized annually by our regulated utilities are expected to be recovered (refunded) through rates filed with our regulatory jurisdictions. As a result, these amounts that are required to otherwise be recognized in accumulated other comprehensive income have been recognized as a long-term regulatory asset (regulatory liability) on our Consolidated Balance Sheet, in accordance with the accounting standards for the effect of certain types of regulation applicable to our Regulated Operations. The defined benefit pension and postretirement health and life benefit expense (credits) associated with our other operations are recognized in accumulated other comprehensive income. According to the accounting standards for retirement benefits, only assets in the VEBAs are treated as plan assets in the above table for the purpose of determining funded status. In establishing the expected long-term rate of return on plan assets, we determine the long-term historical performance of each asset class, adjust these for current economic conditions, and utilizing the target allocation of our plan assets, forecast the expected long-term rate of return. The discount rate is computed using a yield curve adjusted for ALLETE’s projected cash flows to match our plan characteristics. The yield curve is determined using high-quality long-term corporate bond rates at the valuation date. We believe the adjusted discount curve used in this comparison does not materially differ in duration and cash flows from our pension obligation. The Company utilizes actuarial assumptions about mortality to calculate the pension and postretirement health and life benefit obligations. |
Employee Stock Ownership Plan [Policy Text Block] | According to the accounting standards for stock compensation, unallocated shares of ALLETE common stock held and purchased by the ESOP were treated as unearned ESOP shares and not considered outstanding for earnings per share computations. ESOP shares are included in earnings per share computations after they are allocated to participants. The ESOP shares were initially pledged as collateral for the debt. As the debt was repaid, shares were released from collateral and allocated to participants based on the proportion of debt service paid in the year. As shares were released from collateral, we reported compensation expense equal to the current market price of the shares less dividends on allocated shares. The dividends received by the ESOP are distributed to participants. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. |
Operations and Significant Ac30
Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Statement of Cash Flow Information [Table Text Block] | Supplemental Statement of Cash Flow Information Consolidated Statement of Cash Flows Year Ended December 31 2015 2014 2013 Millions Cash Paid During the Period for Interest – Net of Amounts Capitalized $59.0 $51.3 $47.5 Cash Paid During the Period for Income Taxes $0.4 $5.1 $0.5 Noncash Investing and Financing Activities Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment $(40.6) $21.7 $8.3 Capitalized Asset Retirement Costs $12.4 $22.4 $(0.7) AFUDC–Equity $3.3 $7.8 $4.6 ALLETE Common Stock Contributed to the Defined Benefit Pension Plan — $19.5 — Contingent Consideration $35.7 — — |
Accounts Receivable [Table Text Block] | Accounts Receivable As of December 31 2015 2014 Millions Trade Accounts Receivable Billed $105.3 $85.5 Unbilled 16.9 18.6 Less: Allowance for Doubtful Accounts 1.0 1.1 Total Accounts Receivable $121.2 $103.0 |
Inventories [Table Text Block] | Inventories As of December 31 2015 2014 Millions Fuel (a) $58.1 $29.0 Materials and Supplies 49.1 51.5 Raw Materials 2.7 — Finished Goods 7.5 — Reserve for Obsolescence (0.3 ) — Total Inventories $117.1 $80.5 (a) Fuel consists primarily of coal inventory at Minnesota Power. During 2015, Minnesota Power increased its coal inventory to take advantage of favorable pricing. |
Prepayments and Other Current Assets [Table Text Block] | Prepayments and Other Current Assets As of December 31 2015 2014 Millions Deferred Fuel Adjustment Clause $10.6 $16.3 Construction Costs for Development Project (a) — 48.2 Restricted Cash (b) 5.6 2.7 Other 19.5 14.8 Total Prepayments and Other Current Assets $35.7 $82.0 (a) Construction Costs for Development Project related to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) (b) Restricted Cash includes collateral deposits required under ALLETE Clean Energy’s loan agreements and collateral deposits required for U.S. Water Services’ standby letters of credit. |
Other Current and Non-Current Liabilities [Table Text Block] | Other Current Liabilities As of December 31 2015 2014 Millions Customer Deposits $15.1 $19.7 Power Purchase Agreements (a) 23.3 19.4 Construction Deposits Received for Development Project (b) — 54.3 Other (c) 47.7 27.4 Total Other Current Liabilities $86.1 $120.8 (a) Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) (b) Construction Deposits Received for Development Project relate to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) (c) Increase in 2015 includes customer refund liabilities of approximately $7 million , pending regulatory approval. Other Non-Current Liabilities As of December 31 2015 2014 Millions Asset Retirement Obligation $131.4 $109.2 Power Purchase Agreements (a) 138.1 110.7 Contingent Consideration (b) 36.6 — Other 42.9 45.1 Total Other Non-Current Liabilities $349.0 $265.0 (a) Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) (b) Contingent Consideration relates to the estimated fair value of the earnings-based payment resulting from the U.S. Water Services acquisition. (See Note 7. Acquisitions and Note 10. Fair Value.) |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segments [Table Text Block] | As of December 31 2015 2014 Millions Assets Regulated Operations $3,862.6 $3,709.6 Energy Infrastructure and Related Services ALLETE Clean Energy 504.6 291.9 U.S. Water Services 258.3 — Corporate and Other 281.6 359.3 Total Assets $4,907.1 $4,360.8 Capital Expenditures Regulated Operations $224.4 $583.5 Energy Infrastructure and Related Services ALLETE Clean Energy 8.6 4.2 U.S. Water Services 2.9 — Corporate and Other 15.9 16.6 Total Capital Expenditures $251.8 $604.3 Year Ended December 31 2015 2014 2013 Millions Operating Revenue Regulated Operations $991.2 $1,003.5 $925.5 Energy Infrastructure and Related Services ALLETE Clean Energy 262.1 33.2 — U.S. Water Services 119.8 — — Corporate and Other 113.3 100.1 92.9 Total Operating Revenue $1,486.4 $1,136.8 $1,018.4 Net Income (Loss) Attributable to ALLETE Regulated Operations (a) $131.6 $123.0 $103.6 Energy Infrastructure and Related Services ALLETE Clean Energy 29.9 3.3 (3.4 ) U.S. Water Services 0.9 — — Corporate and Other (a) (21.3 ) (1.5 ) 4.5 Total Net Income Attributable to ALLETE $141.1 $124.8 $104.7 Depreciation and Amortization Regulated Operations $135.1 $118.0 $110.2 Energy Infrastructure and Related Services ALLETE Clean Energy 18.7 10.1 — U.S. Water Services 7.3 — — Corporate and Other 8.9 7.6 6.4 Total Depreciation and Amortization $170.0 $135.7 $116.6 Impairment of Real Estate Corporate and Other $36.3 — — Interest Expense Regulated Operations (a) $53.9 $49.2 $44.4 Energy Infrastructure and Related Services ALLETE Clean Energy 3.3 0.8 — U.S. Water Services 1.4 — — Corporate and Other (a) 8.6 7.1 8.2 Eliminations (a) (2.3 ) (2.3 ) (2.3 ) Total Interest Expense $64.9 $54.8 $50.3 Equity Earnings in ATC Regulated Operations $16.3 $19.6 $20.3 Income Tax Expense (Benefit) Regulated Operations $24.4 $39.0 $35.1 Energy Infrastructure and Related Services ALLETE Clean Energy 21.0 2.3 (2.3 ) U.S. Water Services 0.9 — — Corporate and Other (21.0 ) (4.6 ) (4.1 ) Total Income Tax Expense $25.3 $36.7 $28.7 (a) During 2015, an intercompany loan agreement was entered into and interest expense was allocated to certain subsidiaries. The amounts are eliminated in consolidation. Prior period segment results have been revised to conform to the current presentation as if the intercompany loan existed as of January 1, 2013. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment and Estimated Useful Lives of Property, Plant and Equipment [Table Text Block] | Estimated Useful Lives of Property, Plant and Equipment Regulated Operations ALLETE Clean Energy 5 to 44 years Generation 10 to 50 years U.S. Water Services 3 to 39 years Transmission 44 to 67 years Corporate and Other 3 to 39 years Distribution 18 to 65 years Property, Plant and Equipment As of December 31 2015 2014 Millions Regulated Operations $4,336.7 $3,903.3 Construction Work in Progress 101.2 355.4 Accumulated Depreciation (1,323.8 ) (1,260.2 ) Regulated Operations – Net 3,114.1 2,998.5 ALLETE Clean Energy 467.3 203.7 Construction Work in Progress 4.0 1.3 Accumulated Depreciation (24.0 ) (8.4 ) ALLETE Clean Energy – Net 447.3 196.6 U.S. Water Services 15.6 — Accumulated Depreciation (3.4 ) — U.S. Water Services – Net 12.2 — Corporate and Other (a) 165.6 152.5 Construction Work in Progress 4.5 4.6 Accumulated Depreciation (74.6 ) (67.4 ) Corporate and Other – Net 95.5 89.7 Property, Plant and Equipment – Net $3,669.1 $3,284.8 (a) Primarily includes BNI Energy and a small amount of non-rate base generation. |
Asset Retirement Obligations [Table Text Block] | Asset Retirement Obligations Millions Obligation as of December 31, 2013 $81.8 Accretion 5.5 Liabilities Recognized (a) 23.0 Liabilities Settled (0.5 ) Revisions in Estimated Cash Flows (0.6 ) Obligation as of December 31, 2014 109.2 Accretion 7.3 Liabilities Recognized (b) 5.1 Liabilities Settled (2.6 ) Revisions in Estimated Cash Flows 12.4 Obligation as of December 31, 2015 $131.4 (a) The increase in 2014 is related to BNI Energy for coal mining expansion and ALLETE Clean Energy due to wind energy facilities acquisitions.(See Note 7. Acquisitions.) (b) The increase in 2015 is related to the ALLETE Clean Energy wind energy facilities acquisitions in 2015. (See Note 7. Acquisitions.) |
Jointly-Owned Facilities and 33
Jointly-Owned Facilities and Projects (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Jointly-Owned Facilities and Projects [Abstract] | |
Jointly-Owned Facilities and Projects [Table Text Block] | Minnesota Power’s investments in jointly-owned facilities and projects and the related ownership percentages are as follows: Regulated Utility Plant As of December 31 Plant in Service Accumulated Depreciation Construction Work in Progress % Ownership Millions 2015 Boswell Unit 4 $668.2 $195.0 $6.9 80 CapX2020 Projects 101.1 3.4 — 9.3 - 14.7 Total $769.3 $198.4 $6.9 2014 Boswell Unit 4 $419.1 $209.1 $168.1 80 CapX2020 Projects 55.5 1.7 44.0 9.3 - 14.7 Total $474.6 $210.8 $212.1 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities [Table Text Block] | NOTE 5. REGULATORY MATTERS (Continued) Regulatory Assets and Liabilities As of December 31 2015 2014 Millions Current Regulatory Assets (a) Deferred Fuel Adjustment Clause $10.6 $16.3 Total Current Regulatory Assets 10.6 16.3 Non-Current Regulatory Assets Defined Benefit Pension and Other Postretirement Benefit Plans (b) 219.3 223.9 Income Taxes (c) 64.2 46.6 Cost Recovery Riders (d) 58.0 59.7 Asset Retirement Obligations (e) 21.6 17.8 PPACA Income Tax Deferral 5.0 5.0 Other 3.9 4.3 Total Non-Current Regulatory Assets 372.0 357.3 Total Regulatory Assets $382.6 $373.6 Non-Current Regulatory Liabilities Wholesale and Retail Contra AFUDC (f) $58.0 $42.9 Plant Removal Obligations 22.1 22.8 Income Taxes (c) 6.1 13.4 Defined Benefit Pension and Other Postretirement Benefit Plans (b) 0.9 3.5 Other 17.9 11.6 Total Non-Current Regulatory Liabilities $105.0 $94.2 (a) Current regulatory assets are included in Prepayments and Other on the Consolidated Balance Sheet. (b) Defined benefit pension and other postretirement items included in our Regulated Operations, which are otherwise required to be recognized in accumulated other comprehensive income as actuarial gains and losses as well as prior service costs and credits, are recognized as regulatory assets or regulatory liabilities on the Consolidated Balance Sheet. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. (See Note 17. Pension and Other Postretirement Benefit Plans.) (c) These costs represent the difference between deferred income taxes recognized for financial reporting purposes and amounts previously billed to our customers. This balance will decrease over the remaining life of the related temporary differences and flow through current income taxes. (d) The cost recovery rider regulatory assets are revenues not yet collected from our customers primarily due to capital expenditures related to the Bison Wind Energy Center, investment in CapX2020 projects, and the Boswell Unit 4 environmental upgrade and are recognized in accordance with the accounting standards for alternative revenue programs. The cost recovery rider regulatory assets as of December 31, 2015 will be recovered over the next two years. (e) Asset retirement obligations will accrete and be amortized over the lives of the related property with asset retirement obligations. (f) Wholesale and Retail Contra AFUDC represents amortization to offset AFUDC Equity and Debt recorded during the construction period of our cost recovery rider projects prior to placing the projects in service. The regulatory liability will decrease over the remaining depreciable life of the related asset. |
Investment in ATC (Tables)
Investment in ATC (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
ALLETE's Investment in ATC [Table Text Block] | ALLETE’s Investment in ATC Year Ended December 31 2015 2014 Millions Equity Investment Beginning Balance $121.1 $114.6 Cash Investments 1.6 3.9 Equity in ATC Earnings 16.3 19.6 Distributed ATC Earnings (14.5 ) (17.0 ) Equity Investment Ending Balance $124.5 $121.1 ATC Summarized Financial Data Balance Sheet Data As of December 31 2015 2014 Millions Current Assets $80.5 $66.4 Non-Current Assets 3,957.6 3,728.7 Total Assets $4,038.1 $3,795.1 Current Liabilities $330.3 $313.1 Long-Term Debt 1,800.0 1,701.0 Other Non-Current Liabilities 245.0 163.8 Members’ Equity 1,662.8 1,617.2 Total Liabilities and Members’ Equity $4,038.1 $3,795.1 Income Statement Data Year Ended December 31 2015 2014 2013 Millions Revenue $615.8 $635.0 $626.3 Operating Expense 319.3 307.4 295.1 Other Expense 96.1 88.9 83.6 Net Income $200.4 $238.7 $247.6 ALLETE’s Equity in Net Income $16.3 $19.6 $20.3 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions [Table Text Block] | Millions Assets Acquired Cash and Cash Equivalents $0.9 Accounts Receivable 16.8 Inventories (a) 13.4 Other Current Assets (b) 5.3 Property, Plant and Equipment 10.6 Intangible Assets (c) 83.0 Goodwill (d) 122.9 Other Non-Current Assets 0.2 Total Assets Acquired $253.1 Liabilities Assumed Current Liabilities $19.2 Non-Current Liabilities 31.6 Total Liabilities Assumed $50.8 Net Identifiable Assets Acquired $202.3 (a) Included in Inventories was $2.7 million of fair value adjustments relating to work in progress and finished goods inventories which will be recognized as Cost of Sales within one year from the acquisition date. (b) Included in Other Current Assets was $1.6 million relating to the fair value of sales backlog. Sales backlog will be recognized as Cost of Sales within one year from the acquisition date. Also included in Other Current Assets was restricted cash of $2.1 million relating to cash pledged as collateral for standby letters of credit. (c) Intangible Assets include customer relationships, patents, non-compete agreements, and trademarks and trade names. (See Note 8. Goodwill and Intangible Assets.) (d) For tax purposes, the purchase price allocation resulted in $2.9 million of deductible goodwill. Millions Assets Acquired Cash and Cash Equivalents $0.4 Other Current Assets 4.7 Property, Plant and Equipment 47.3 Other Non-Current Assets (a) 11.4 Total Assets Acquired $63.8 Liabilities Assumed Current Liabilities (b) $8.2 Power Purchase Agreements 23.5 Non-Current Liabilities 17.0 Total Liabilities Assumed $48.7 Net Identifiable Assets Acquired $15.1 (a) Included in Other Non-Current Assets was $0.4 million of restricted cash and an immaterial amount of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. (b) Current Liabilities included $7.5 million related to the current portion of Power Purchase Agreements. Millions Assets Acquired Current Assets $4.8 Property, Plant and Equipment 103.0 Other Non-Current Assets (a) 1.0 Total Assets Acquired $108.8 Liabilities Assumed Current Liabilities (b) $6.7 Power Purchase Agreements 49.0 Non-Current Liabilities 5.1 Total Liabilities Assumed $60.8 Net Identifiable Assets Acquired $48.0 (a) Included in Other Non-Current Assets was $0.3 million of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. (b) Current Liabilities included $5.9 million related to the current portion of Power Purchase Agreements. Millions Assets Acquired Cash and Cash Equivalents $3.8 Other Current Assets 14.3 Property, Plant and Equipment 156.9 Other Non-Current Assets (a) 7.5 Total Assets Acquired $182.5 Liabilities Assumed Current Liabilities (b) $15.2 Long-Term Debt Due Within One Year 2.2 Long-Term Debt 21.1 Power Purchase Agreements 99.4 Other Non-Current Liabilities 10.6 Non-Controlling Interest (c) 7.1 Total Liabilities and Non-Controlling Interest Assumed $155.6 Net Identifiable Assets Acquired $26.9 (a) Included in Other Non-Current Assets was $0.3 million for the option to purchase Armenia Mountain, and goodwill of $2.9 million. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. (b) Current Liabilities included $12.4 million related to the current portion of Power Purchase Agreements. (c) The purchase price accounting valued the non-controlling interest related to Lake Benton, Storm Lake II and Condon at fair value using the discounted cash flow method. Millions Assets Acquired Current Assets $1.0 Property, Plant and Equipment 0.1 Intangible Assets (a) 3.9 Goodwill (b) 4.3 Total Assets Acquired $9.3 Liabilities Assumed Current Liabilities $0.1 Total Liabilities Assumed $0.1 Net Identifiable Assets Acquired $9.2 (a) Intangible Assets include customer relationships and non-compete agreements. (See Note 8. Goodwill and Intangible Assets.) (b) For tax purposes, the purchase price allocation resulted in $4.3 million of deductible goodwill. Millions Assets Acquired Current Assets (a) $9.0 Property, Plant and Equipment 156.2 Other Non-Current Assets (b) 14.4 Total Assets Acquired $179.6 Liabilities Assumed Current Liabilities $2.9 Long-Term Debt Due Within One Year 5.9 Long-Term Debt 55.0 Other Non-Current Liabilities 4.7 Total Liabilities Assumed $68.5 Net Identifiable Assets Acquired $111.1 (a) Included in Current Assets was $1.0 million related to the current portion of Power Purchase Agreements and $6.0 million of restricted cash related to collateral deposits required under its loan agreement. (b) Included in Other Non-Current Assets was $8.2 million related to the non-current portion of Power Purchase Agreements, $6.1 million of restricted cash related to collateral deposits required under its loan agreements, and an immaterial amount of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table summarizes changes to goodwill by reportable segment for the year ended December 31, 2015 : ALLETE Clean Energy U.S. Water Services Total Millions Balance as of December 31, 2014 $2.9 — $2.9 Acquired Goodwill 0.4 $127.3 127.7 Balance as of December 31, 2015 $3.3 $127.3 $130.6 |
Schedule of Intangible Assets [Table Text Block] | Balances of intangible assets, net, excluding goodwill as of December 31, 2015 , are as follows: December 31, Additions (a) Amortization Other (b) December 31, Millions Intangible Assets Definite-Lived Intangible Assets Customer Relationships — $64.0 $(3.2) — $60.8 Developed Technology and Other (c) $1.9 6.4 (0.8) $(0.3) 7.2 Total Definite-Lived Intangible Assets 1.9 70.4 (4.0) (0.3) 68.0 Indefinite-Lived Intangible Assets Trademarks and Trade Names — 16.6 n/a — 16.6 Total Intangible Assets $1.9 $87.0 $(4.0) $(0.3) $84.6 (a) Additions are primarily the result of the U.S. Water Services acquisition. (See Note 7. Acquisitions.) (b) Armenia Mountain was acquired on July 1, 2015, at which time the purchase option intangible asset was reclassified as a component of the acquisition consideration. (c) Developed Technology and Other includes patents, non-compete agreements, and land easements. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Other Investments [Table Text Block] | Other Investments As of December 31 2015 2014 Millions ALLETE Properties (a) $50.1 $88.2 Available-for-sale Securities (b) 18.5 18.9 Cash Equivalents 2.0 2.9 Other 4.0 4.4 Total Other Investments $74.6 $114.4 (a) In 2015, ALLETE Properties recorded a $36.3 million non-cash impairment charge related to its real estate assets. (See Note 1. Operations and Significant Accounting Policies.) (b) As of December 31, 2015 , the aggregate amount of available-for-sale corporate debt securities maturing in one year or less was none , in one year to less than three years was $1.0 million , in three years to less than five years was $3.2 million , and in five or more years was $6.7 million . |
Available-for-sale Securities [Table Text Block] | Available-For-Sale Securities Millions Gross Unrealized As of December 31 Cost Gain Loss Fair Value 2015 $20.0 — $1.5 $18.5 2014 $19.6 $0.2 $0.9 $18.9 2013 $18.3 — $0.6 $17.7 Net Gross Realized Year Ended December 31 Proceeds Gain Loss 2015 $1.7 $0.1 — 2014 $3.6 $0.2 — 2013 $16.1 $2.2 — |
Available-for-sale Securities [Table Text Block] | Available-For-Sale Securities Millions Gross Unrealized As of December 31 Cost Gain Loss Fair Value 2015 $20.0 — $1.5 $18.5 2014 $19.6 $0.2 $0.9 $18.9 2013 $18.3 — $0.6 $17.7 Net Gross Realized Year Ended December 31 Proceeds Gain Loss 2015 $1.7 $0.1 — 2014 $3.6 $0.2 — 2013 $16.1 $2.2 — |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measures [Table Text Block] | Fair Value as of December 31, 2015 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Investments (a) Available-for-sale – Equity Securities $7.6 — — $7.6 Available-for-sale – Corporate Debt Securities — $10.9 — 10.9 Cash Equivalents 2.0 — — 2.0 Total Fair Value of Assets $9.6 $10.9 — $20.5 Liabilities: (b) Deferred Compensation — $16.1 — $16.1 U.S. Water Services Contingent Consideration — — $36.6 36.6 Total Fair Value of Liabilities — $16.1 $36.6 $52.7 Total Net Fair Value of Assets (Liabilities) $9.6 $(5.2) $(36.6) $(32.2) (a) Included in Other Investments on the Consolidated Balance Sheet. (b) Included in Other Non-Current Liabilities on the Consolidated Balance Sheet. Fair Value as of December 31, 2014 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Investments (a) Available-for-sale – Equity Securities $8.1 — — $8.1 Available-for-sale – Corporate Debt Securities — $10.8 — 10.8 Cash Equivalents 2.9 — — 2.9 Total Fair Value of Assets $11.0 $10.8 — $21.8 Liabilities: Deferred Compensation (b) — $16.2 — $16.2 Derivatives – Interest Rate Swap (c) — 0.3 — 0.3 Total Fair Value of Liabilities — $16.5 — $16.5 Total Net Fair Value of Assets (Liabilities) $11.0 $(5.7) — $5.3 (a) Included in Other Investments on the Consolidated Balance Sheet. (b) Included in Other Non-Current Liabilities on the Consolidated Balance Sheet. (c) Included in Current Liabilities - Other on the Consolidated Balance Sheet. |
Recurring Fair Value Activity in Level 3 [Table Text Block] | Recurring Fair Value Measures Activity in Level 3 Millions Balance as of December 31, 2014 — Recognition of U.S. Water Services Contingent Consideration $35.7 Accretion Expense (a) 2.4 Changes in Cash Flow Projections (1.5 ) Balance as of December 31, 2015 $36.6 (a) Included in Interest Expense on the Consolidated Statement of Income. |
Financial Instruments [Table Text Block] | Financial Instruments Carrying Amount Fair Value Millions Long-Term Debt, Including Current Portion December 31, 2015 $1,605.0 $1,676.0 December 31, 2014 $1,373.5 $1,484.5 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Table Text Block] | Long-Term Debt As of December 31 2015 2014 Millions First Mortgage Bonds 7.70% Series Due 2016 $20.0 $20.0 1.83% Series Due 2018 50.0 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 — 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 — 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 Unsecured Term Loan Variable Rate Due 2015 — 75.0 Unsecured Term Loan Variable Rate Due 2017 125.0 — Senior Unsecured Notes 5.99% Due 2017 50.0 50.0 Variable Demand Revenue Refunding Bonds Series 1997 A Due 2015 – 2020 13.5 24.6 Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 2025 27.8 27.8 Armenia Mountain Senior Secured Notes 3.26% Due 2024 83.3 — SWL&P First Mortgage Bonds 4.15% Series Due 2028 15.0 15.0 Other Long-Term Debt, 0.08% – 7.45% Due 2016 – 2037 68.4 59.1 Total Long-Term Debt 1,605.0 1,373.5 Less: Due Within One Year 36.3 100.7 Net Long-Term Debt $1,568.7 $1,272.8 On September 24, 2015, we issued $100.0 million of ALLETE first mortgage bonds (Bonds) in the private placement market as shown below: Maturity Date Principal Amount Interest Rate September 15, 2020 $40 Million 2.80% September 16, 2030 $60 Million 3.86% |
Common Stock and Earnings Per41
Common Stock and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock and Earnings Per Share [Abstract] | |
Summary of Common Stock [Table Text Block] | Summary of Common Stock Shares Equity Thousands Millions Balance as of December 31, 2012 39,377 $784.7 Employee Stock Purchase Program 16 0.7 Invest Direct 395 18.5 Options and Stock Awards 301 17.9 Equity Issuance Program 1,312 63.4 Balance as of December 31, 2013 41,401 885.2 Employee Stock Purchase Program 18 0.8 Invest Direct 378 18.9 Options and Stock Awards 78 8.0 Equity Issuance Program 1,851 90.0 Forward Sale Agreement and Issuance 1,807 85.2 Contribution to Pension 396 19.5 Balance as of December 31, 2014 45,929 1,107.6 Employee Stock Purchase Program 18 0.9 Invest Direct 383 19.0 Options and Stock Awards 43 8.6 Equity Issuance Program 1,289 69.9 Forward Sale Agreement 1,413 65.4 Balance as of December 31, 2015 49,075 $1,271.4 |
Reconciliation of Basic and Diluted Earnings Per Share [Table Text Block] | Reconciliation of Basic and Diluted Earnings Per Share Dilutive Year Ended December 31 Basic Securities Diluted Millions Except Per Share Amounts 2015 Net Income Attributable to ALLETE $141.1 $141.1 Average Common Shares 48.3 0.1 48.4 Earnings Per Share $2.92 $2.92 2014 Net Income Attributable to ALLETE $124.8 $124.8 Average Common Shares 42.9 0.2 43.1 Earnings Per Share $2.91 $2.90 2013 Net Income Attributable to ALLETE $104.7 $104.7 Average Common Shares 39.7 0.1 39.8 Earnings Per Share $2.64 $2.63 |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income [Table Text Block] | Year Ended December 31 2015 2014 2013 Millions AFUDC–Equity $3.3 $7.8 $4.6 Gain on Sale of Available-for-sale Securities 0.1 0.2 2.2 Investments and Other Income 1.3 0.6 2.5 Total Other Income $4.7 $8.6 $9.3 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense [Table Text Block] | Income Tax Expense Year Ended December 31 2015 2014 2013 Millions Current Tax Expense Federal (a) — $1.1 — State (a) $0.2 2.9 $0.1 Total Current Tax Expense 0.2 4.0 0.1 Deferred Tax Expense Federal 19.4 25.3 22.9 State 6.5 8.2 6.5 Investment Tax Credit Amortization (0.8 ) (0.8 ) (0.8 ) Total Deferred Tax Expense 25.1 32.7 28.6 Total Income Tax Expense $25.3 $36.7 $28.7 (a) For the years ended December 31, 2015, 2014, and 2013, the federal and state current tax expense was minimal due to NOLs which resulted from the bonus depreciation provisions of the Protecting Americans from Tax Hikes Act of 2015, the Tax Increase Prevention Act of 2014 and the American Taxpayer Relief Act of 2012. The federal and state NOLs will be carried forward to offset future taxable income. The year ended December 31, 2014 includes the resolution of an Internal Revenue Service examination for tax years 2005 through 2009 and the impacts of initiatives implemented on the 2013 federal and state tax returns to utilize tax carryforwards that may have expired. |
Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense [Table Text Block] | Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense Year Ended December 31 2015 2014 2013 Millions Income Before Non-Controlling Interest and Income Taxes $166.8 $162.2 $133.4 Statutory Federal Income Tax Rate 35 % 35 % 35 % Income Taxes Computed at 35 percent Statutory Federal Rate $58.4 $56.8 $46.7 Increase (Decrease) in Tax Due to: State Income Taxes – Net of Federal Income Tax Benefit 4.4 7.2 4.3 Regulatory Differences for Utility Plant (0.6 ) (3.5 ) (2.2 ) Production Tax Credits (37.0 ) (23.7 ) (19.2 ) Other 0.1 (0.1 ) (0.9 ) Total Income Tax Expense $25.3 $36.7 $28.7 |
Deferred Tax Assets and Liabilities [Table Text Block] | Deferred Tax Assets and Liabilities As of December 31 2015 2014 Millions Deferred Tax Assets Employee Benefits and Compensation $105.4 $102.2 Property Related 126.6 102.7 NOL Carryforwards 186.4 156.5 Tax Credit Carryforwards 164.8 95.7 Power Purchase Agreements 73.0 51.8 Other 21.8 17.0 Gross Deferred Tax Assets 678.0 525.9 Deferred Tax Asset Valuation Allowance (31.6 ) (22.1 ) Total Deferred Tax Assets $646.4 $503.8 Deferred Tax Liabilities Property Related $1,053.0 $848.8 Regulatory Asset for Benefit Obligations 89.4 89.9 Unamortized Investment Tax Credits 26.0 10.3 Partnership Basis Differences 47.8 41.9 Other 10.0 16.1 Total Deferred Tax Liabilities $1,226.2 $1,007.0 Net Deferred Income Taxes $579.8 $503.2 Recorded as: Net Current Deferred Tax Assets (a) — $7.5 Net Long-Term Deferred Tax Liabilities $579.8 510.7 Net Deferred Income Taxes $579.8 $503.2 (a) For discussion of classification of deferred income taxes see Note 1. Operations and Significant Accounting Policies - New Accounting Standards - Balance Sheet Classification of Deferred Taxes. NOL and Tax Credit Carryforwards As of December 31 2015 2014 Millions Federal NOL Carryforwards (a) $493.0 $413.7 Federal Tax Credit Carryforwards $113.6 $59.3 State NOL Carryforwards (a) $228.6 $184.7 State Tax Credit Carryforwards (b) $20.0 $14.7 |
NOL and Tax Credit Carryforwards [Table Text Block] | NOL and Tax Credit Carryforwards As of December 31 2015 2014 Millions Federal NOL Carryforwards (a) $493.0 $413.7 Federal Tax Credit Carryforwards $113.6 $59.3 State NOL Carryforwards (a) $228.6 $184.7 State Tax Credit Carryforwards (b) $20.0 $14.7 (a) Pretax amounts. (b) Net of a $31.2 million valuation allowance as of December 31, 2015 ( $21.7 million as of December 31, 2014 ). |
Gross Unrecognized Income Tax Benefits [Table Text Block] | Gross Unrecognized Income Tax Benefits 2015 2014 2013 Millions Balance at January 1 $2.0 $1.2 $2.7 Additions for Tax Positions Related to the Current Year 0.5 — 0.1 Additions for Tax Positions Related to Prior Years 0.7 1.0 1.3 Reductions for Tax Positions Related to Prior Years (0.7 ) — — Reductions for Settlements — — (2.9 ) Lapse of Statute (0.1 ) (0.2 ) — Balance as of December 31 $2.4 $2.0 $1.2 |
Reclassifications Out of Accu44
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive loss, net of tax, for the years ended December 31, 2015 , 2014 and 2013 , were as follows: Unrealized Gain (Loss) on Available-for-sale Securities Defined Benefit Pension, Other Postretirement Items (a) Gain (Loss) on Cash Flow Hedge Total Millions Balance as of December 31, 2012 $(0.1) $(21.5) $(0.4) $(22.0) Other Comprehensive Income Before Reclassifications 1.3 3.2 0.1 4.6 Amounts Reclassified From Accumulated Other Comprehensive Loss (1.3 ) 1.6 — 0.3 Net Other Comprehensive Income — 4.8 0.1 4.9 Balance as of December 31, 2013 (0.1 ) (16.7 ) (0.3 ) (17.1 ) Other Comprehensive Income (Loss) Before Reclassifications (0.3 ) (5.2 ) 0.2 (5.3 ) Amounts Reclassified From Accumulated Other Comprehensive Loss 0.1 1.2 — 1.3 Net Other Comprehensive Income (Loss) (0.2 ) (4.0 ) 0.2 (4.0 ) Balance as of December 31, 2014 (0.3 ) (20.7 ) (0.1 ) (21.1 ) Other Comprehensive Income (Loss) Before Reclassifications (0.4 ) (4.3 ) 0.1 (4.6 ) Amounts Reclassified From Accumulated Other Comprehensive Loss (0.1 ) 1.3 — 1.2 Net Other Comprehensive Income (Loss) (0.5 ) (3.0 ) 0.1 (3.4 ) Balance as of December 31, 2015 $(0.8) $(23.7) — $(24.5) (a) Defined benefit pension and other postretirement items excluded from our Regulated Operations are recognized in accumulated other comprehensive loss and are subsequently reclassified out of accumulated other comprehensive loss as components of net periodic pension and other postretirement benefit expense. (See Note 17. Pension and Other Postretirement Benefit Plans.) |
Pension and Other Postretirem45
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated Future Benefit Payments [Table Text Block] | Estimated Future Benefit Payments Pension Postretirement Health and Life Millions 2016 $39.8 $8.3 2017 $40.6 $8.6 2018 $41.1 $8.8 2019 $41.7 $9.1 2020 $41.8 $9.3 Years 2021 – 2025 $216.2 $48.0 |
Defined Benefit Costs Recorded in Regulatory Long-Term Assets or Liabilities and Accumulated Other Comprehensive Income Expected to be Recognized over Next Fiscal Year [Table Text Block] | The pension and postretirement health and life costs recorded in regulatory long-term assets or liabilities and accumulated other comprehensive income expected to be recognized as a component of net pension and postretirement benefit costs for the year ending December 31, 2016 , are as follows: Pension Postretirement Health and Life Millions Net (Gain) Loss $(8.4) $0.2 Prior Service Credit — (2.9) Total Pension and Postretirement Health and Life Credit $(8.4) $(2.7) |
Assumptions Used to Determine Benefit Obligation and Net Periodic Benefit Costs [Table Text Block] | Assumptions Used to Determine Benefit Obligation As of December 31 2015 2014 Discount Rate Pension 4.72% 4.30% Postretirement Health and Life 4.73% 4.33% Rate of Compensation Increase 3.70 - 4.30% 3.70 - 4.30% Health Care Trend Rates Trend Rate 6.50% 6.75% Ultimate Trend Rate 5.00% 5.00% Year Ultimate Trend Rate Effective 2022 2022 Assumptions Used to Determine Net Periodic Benefit Costs Year Ended December 31 2015 2014 2013 Discount Rate 4.30 - 4.33% 4.93 - 4.96% 4.10 - 4.13% Expected Long-Term Return on Plan Assets Pension 8.00% 8.00% 8.25% Postretirement Health and Life 6.40 - 8.00% 6.40 - 8.00% 6.60 - 8.25% Rate of Compensation Increase 3.70 - 4.30% 3.70 - 4.30% 4.30 - 4.60% |
Plan Asset Allocations, Actual and Target [Table Text Block] | Plan Asset Target Allocations Pension Postretirement Health and Life (a) Equity Securities 56 % 60 % Debt Securities 35 % 37 % Real Estate 9 % 3 % 100 % 100 % (a) Includes VEBAs and irrevocable grantor trusts. Actual Plan Asset Allocations Pension Postretirement Health and Life (a) 2015 2014 2015 2014 Equity Securities 47 % 48 % 57 % 58 % Debt Securities 39 % 39 % 35 % 34 % Private Equity 8 % 8 % 8 % 8 % Real Estate 6 % 5 % — — 100 % 100 % 100 % 100 % (a) Includes VEBAs and irrevocable grantor trusts. |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Obligation and Funded Status [Table Text Block] | Pension Obligation and Funded Status At December 31 2015 2014 Millions Accumulated Benefit Obligation $665.0 $661.4 Change in Benefit Obligation Obligation, Beginning of Year $714.5 $622.8 Service Cost 10.1 8.3 Interest Cost 29.9 29.8 Actuarial (Gain) Loss (31.2 ) 72.6 Benefits Paid (40.2 ) (36.9 ) Participant Contributions 26.7 17.9 Obligation, End of Year $709.8 $714.5 Change in Plan Assets Fair Value, Beginning of Year $544.2 $501.6 Actual Return on Plan Assets (10.8 ) 41.0 Employer Contribution (a) 28.1 38.5 Benefits Paid (40.2 ) (36.9 ) Fair Value, End of Year $521.3 $544.2 Funded Status, End of Year $(188.5) $(170.3) Net Pension Amounts Recognized in Consolidated Balance Sheet Consist of: Current Liabilities $(1.3) $(1.2) Non-Current Liabilities $(187.2) $(169.1) (a) Includes Participant Contributions noted above. |
Unrecognized Costs [Table Text Block] | The pension costs that are reported as a component within our Consolidated Balance Sheet, reflected in long-term regulatory assets or liabilities and accumulated other comprehensive income, consist of the following: Unrecognized Pension Costs As of December 31 2015 2014 Millions Net Loss $252.7 $250.4 Prior Service Cost — 0.2 Total Unrecognized Pension Costs $252.7 $250.6 |
Components of Net Periodic Expense [Table Text Block] | Components of Net Periodic Pension Expense Year Ended December 31 2015 2014 2013 Millions Service Cost $10.1 $8.3 $9.9 Interest Cost 29.9 29.8 26.0 Expected Return on Plan Assets (40.7 ) (38.2 ) (35.2 ) Amortization of Loss 17.9 14.2 21.5 Amortization of Prior Service Cost 0.2 0.3 0.3 Net Pension Expense $17.4 $14.4 $22.5 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities [Table Text Block] | Other Changes in Pension Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities Year Ended December 31 2015 2014 Millions Net Loss $20.2 $69.8 Amortization of Prior Service Cost (0.2 ) (0.3 ) Amortization of Loss (17.9 ) (14.2 ) Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities $2.1 $55.3 |
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets As of December 31 2015 2014 Millions Projected Benefit Obligation $709.8 $714.5 Accumulated Benefit Obligation $665.0 $661.4 Fair Value of Plan Assets $521.3 $544.2 |
Recurring Fair Value Measures [Table Text Block] | Fair Value as of December 31, 2014 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $32.1 $56.4 — $88.5 U.S. Mid-cap Growth (a) 13.6 23.9 — 37.5 U.S. Small-cap (a) 13.9 24.4 — 38.3 International 46.1 45.9 — 92.0 Debt Securities: Mutual Funds 0.1 — — 0.1 Fixed Income 2.7 201.0 — 203.7 Cash and Cash Equivalents 11.9 — — 11.9 Other Types of Investments: Private Equity Funds — — $43.3 43.3 Real Estate — — 28.9 28.9 Total Fair Value of Assets $120.4 $351.6 $72.2 $544.2 (a) The underlying investments classified under U.S. Equity Securities consist of money market funds (Level 1) and actively-managed funds (Level 2), which are combined with futures, and settle daily, to achieve the returns of the U.S. Equity Securities Large-cap, Mid-cap Growth, and Small-cap funds. Our exposure with respect to these investments includes both the futures and the underlying investments. Fair Value as of December 31, 2015 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $33.9 $42.1 — $76.0 U.S. Mid-cap Growth (a) 14.2 17.7 — 31.9 U.S. Small-cap (a) 14.5 17.9 — 32.4 Mutual Funds 8.4 — — 8.4 International 44.7 42.0 — 86.7 Debt Securities: Mutual Funds 0.1 — — 0.1 Fixed Income 2.7 185.3 — 188.0 Cash and Cash Equivalents 25.6 — — 25.6 Other Types of Investments: Private Equity Funds — — $43.3 43.3 Real Estate — — 28.9 28.9 Total Fair Value of Assets $144.1 $305.0 $72.2 $521.3 (a) The underlying investments classified under U.S. Equity Securities consist of money market funds (Level 1) and actively-managed funds (Level 2), which are combined with futures, and settle daily, to achieve the returns of the U.S. Equity Securities Large-cap, Mid-cap Growth, and Small-cap funds. Our exposure with respect to these investments includes both the futures and the underlying investments. |
Recurring Fair Value Measures - Activity in Level 3 [Table Text Block] | Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Real Estate Millions Balance as of December 31, 2013 $46.8 $26.5 Actual Return on Plan Assets 1.2 2.8 Purchases, Sales, and Settlements – Net (4.7 ) (0.4 ) Balance as of December 31, 2014 $43.3 $28.9 Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Real Estate Millions Balance as of December 31, 2014 $43.3 $28.9 Actual Return on Plan Assets 2.6 2.9 Purchases, Sales, and Settlements – Net (2.6 ) (2.9 ) Balance as of December 31, 2015 $43.3 $28.9 |
Postretirement Health and Life [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Obligation and Funded Status [Table Text Block] | Postretirement Health and Life Obligation and Funded Status At December 31 2015 2014 Millions Change in Benefit Obligation Obligation, Beginning of Year $170.9 $151.9 Service Cost 4.3 3.4 Interest Cost 7.2 7.3 Actuarial (Gain) Loss (14.4 ) 18.1 Benefits Paid (10.7 ) (8.9 ) Participant Contributions 2.9 2.6 Plan Amendments — (2.9 ) Plan Curtailments — (0.6 ) Obligation, End of Year $160.2 $170.9 Change in Plan Assets Fair Value, Beginning of Year $163.2 $157.0 Actual Return on Plan Assets (3.5 ) 11.6 Employer Contribution 1.5 1.1 Participant Contributions 2.9 2.6 Benefits Paid (10.7 ) (9.1 ) Fair Value, End of Year $153.4 $163.2 Funded Status, End of Year $(6.8) $(7.7) Net Postretirement Health and Life Amounts Recognized in Consolidated Balance Sheet Consist of: Non-Current Assets $6.4 $6.6 Current Liabilities $(1.0) $(0.9) Non-Current Liabilities $(12.2) $(13.4) |
Unrecognized Costs [Table Text Block] | The postretirement health and life costs that are reported as a component within our Consolidated Balance Sheet, reflected in regulatory long-term assets or liabilities and accumulated other comprehensive income, consist of the following: Unrecognized Postretirement Health and Life Costs As of December 31 2015 2014 Millions Net Loss $6.5 $6.9 Prior Service Credit (7.6 ) (10.6 ) Total Unrecognized Postretirement Health and Life Credit $(1.1) $(3.7) |
Components of Net Periodic Expense [Table Text Block] | Components of Net Periodic Postretirement Health and Life Expense Year Ended December 31 2015 2014 2013 Millions Service Cost $4.3 $3.4 $3.9 Interest Cost 7.2 7.3 6.8 Expected Return on Plan Assets (10.9 ) (10.3 ) (9.7 ) Amortization of Loss 0.4 0.5 1.6 Amortization of Prior Service Credit (3.0 ) (2.5 ) (2.5 ) Effect of Plan Settlement (a) — — (1.6 ) Net Postretirement Health and Life Credit $(2.0) $(1.6) $(1.5) (a) Result of the termination of a legacy benefit plan. |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities [Table Text Block] | Other Changes in Postretirement Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities Year Ended December 31 2015 2014 Millions Net Loss — $16.4 Prior Service Credit Arising During the Period — (3.0 ) Amortization of Prior Service Credit $3.0 2.5 Amortization of Loss (0.4 ) (0.5 ) Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities $2.6 $15.4 |
Sensitivity of a One-Percentage-Point Change in Health Care Trend Rates [Table Text Block] | Sensitivity of a One-Percentage-Point 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 $1.9 $(1.5) Effect on Postretirement Health and Life Obligation $19.3 $(15.9) |
Recurring Fair Value Measures [Table Text Block] | Fair Value as of December 31, 2015 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $28.2 — — $28.2 U.S. Mid-cap Growth (a) 19.1 — — 19.1 U.S. Small-cap (a) 12.1 — — 12.1 International 26.8 — — 26.8 Debt Securities: Mutual Funds 45.2 — — 45.2 Fixed Income — $8.4 — 8.4 Cash and Cash Equivalents 1.6 — — 1.6 Other Types of Investments: Private Equity Funds — — $12.0 12.0 Total Fair Value of Assets $133.0 $8.4 $12.0 $153.4 (a) The underlying investments classified under U.S. Equity Securities consist of mutual funds (Level 1). Fair Value as of December 31, 2014 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Millions Assets: Equity Securities: U.S. Large-cap (a) $29.3 — — $29.3 U.S. Mid-cap Growth (a) 20.0 — — 20.0 U.S. Small-cap (a) 12.6 — — 12.6 International 30.6 — — 30.6 Debt Securities: Mutual Funds 44.5 — — 44.5 Fixed Income — $9.9 — 9.9 Cash and Cash Equivalents 3.4 — — 3.4 Other Types of Investments: Private Equity Funds — — $12.9 12.9 Total Fair Value of Assets $140.4 $9.9 $12.9 $163.2 (a) The underlying investments classified under U.S. Equity Securities consist of mutual funds (Level 1). |
Recurring Fair Value Measures - Activity in Level 3 [Table Text Block] | Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Millions Balance as of December 31, 2013 $13.1 Actual Return on Plan Assets 1.4 Purchases, Sales, and Settlements – Net (1.6 ) Balance as of December 31, 2014 $12.9 Recurring Fair Value Measures Activity in Level 3 Private Equity Funds Millions Balance as of December 31, 2014 $12.9 Actual Return on Plan Assets 1.2 Purchases, Sales, and Settlements – Net (2.1 ) Balance as of December 31, 2015 $12.0 |
Employee Stock and Incentive 46
Employee Stock and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Ownership Plan [Table Text Block] | As of December 31 2015 2014 2013 Millions ESOP Shares Allocated 1.8 1.9 2.0 Unallocated — 0.3 0.5 Total 1.8 2.2 2.5 Fair Value of Unallocated Shares — $13.2 $24.1 |
Share-Based Compensation Expense [Table Text Block] | The following share-based compensation expense amounts were recognized in our Consolidated Statement of Income for the periods presented. Share-Based Compensation Expense Year Ended December 31 2015 2014 2013 Millions Performance Shares $1.8 $1.6 $1.7 Restricted Stock Units 0.8 0.7 0.7 Total Share-Based Compensation Expense $2.6 $2.3 $2.4 Income Tax Benefit $1.1 $1.0 $1.0 |
Non-Qualified Stock Options [Table Text Block] | Non-Qualified Stock Options. The following table presents information regarding our outstanding stock options. 2015 2014 2013 Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Outstanding as of January 1 66,279 $44.39 108,299 $44.10 395,678 $42.28 Granted (a) — — — — — — Exercised (24,456 ) $44.52 (42,020 ) $43.65 (287,379 ) $41.60 Forfeited (2,169 ) $42.93 — — — — Outstanding as of December 31 39,654 $44.39 66,279 $44.39 108,299 $44.10 Exercisable as of December 31 39,654 $44.39 66,279 $44.39 108,299 $43.17 (a) Stock options have not been granted since 2008. The weighted-average grant-date intrinsic value of options granted in 2008 was $6.18 . |
Stock Options by Exercise Price Range [Table Text Block] | Exercise Price As of December 31, 2015 $39.10 $44.15 $48.65 Options Outstanding and Exercisable: Number Outstanding and Exercisable 16,620 2,306 20,728 Weighted Average Remaining Contractual Life (Years) 2.1 0.1 1.1 Weighted Average Exercise Price $39.10 $44.15 $48.65 Aggregate Intrinsic Value (Millions) $0.2 — $0.1 |
Performance Shares [Table Text Block] | Performance Shares. The following table presents information regarding our non-vested performance shares. 2015 2014 2013 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 1 119,635 $48.26 114,765 $47.02 107,899 $40.73 Granted (a) 43,583 $58.95 47,992 $46.47 45,830 $52.15 Awarded — — (36,515 ) $42.01 (18,605 ) $35.10 Unearned Grant Award (36,670 ) $45.41 — — (18,606 ) $35.10 Forfeited (7,008 ) $53.49 (6,607 ) $48.29 (1,753 ) $47.26 Non-vested as of December 31 119,540 $52.72 119,635 $48.26 114,765 $47.02 (a) Shares granted include accrued dividends. |
Restricted Stock Units [Table Text Block] | Restricted Stock Units. The following table presents information regarding our available restricted stock units. 2015 2014 2013 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 53,888 $44.47 55,982 $40.85 56,415 $36.61 Granted (a) 26,702 $54.81 19,645 $48.44 21,440 $43.41 Awarded (19,464 ) $41.44 (18,860 ) $37.64 (20,939 ) $32.03 Forfeited (3,432 ) $51.52 (2,879 ) $45.92 (934 ) $41.02 Available as of December 31 57,694 $49.86 53,888 $44.47 55,982 $40.85 (a) Shares granted include accrued dividends. |
Quarterly Financial Data (Una47
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) [Table Text Block] | Quarter Ended Mar. 31 Jun. 30 Sept. 30 Dec. 31 Millions Except Earnings Per Share 2015 Operating Revenue $320.0 $323.3 $462.5 $380.6 Operating Income $56.4 $39.5 $85.2 $29.6 Net Income Attributable to ALLETE $39.9 $22.5 $60.4 $18.3 Earnings Per Share of Common Stock Basic $0.85 $0.46 $1.24 $0.37 Diluted $0.85 $0.46 $1.23 $0.37 2014 Operating Revenue $296.5 $260.7 $288.9 $290.7 Operating Income $48.3 $28.2 $60.8 $51.5 Net Income Attributable to ALLETE $33.5 $16.8 $41.6 $32.9 Earnings Per Share of Common Stock Basic $0.81 $0.40 $0.97 $0.73 Diluted $0.80 $0.40 $0.97 $0.73 |
Operations and Significant Ac48
Operations and Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating and Maintenance Expense to Cost of Sales [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | $ 77.9 | $ 71.2 |
Operating and Maintenance Expense to Transmission Services [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | 45.6 | 32.3 |
Operating and Maintenance Expense to Taxes Other than Income Taxes [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | 45.6 | 41.7 |
Operating Income [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | 0 | 0 |
Net Income [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | 0 | 0 |
Net Income Attributable to ALLETE [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | 0 | $ 0 |
Property, Plant and Equipment - Net to Goodwill and Intangible Assets - Net [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | 1.6 | |
Other Non-Current Assets to Goodwill and Intangible Assets - Net [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | 3.2 | |
Total Assets [Member] | ||
Schedule of Prior Period Reclassifications [Line Items] | ||
Prior Period Reclassification | $ 0 |
Operations and Significant Ac49
Operations and Significant Accounting Policies - Business Segments (Details) | 12 Months Ended |
Dec. 31, 2015aCustomersMW | |
Business Segments [Line Items] | |
Number of Reportable Segments | 3 |
Square Butte [Member] | Square Butte PPA [Member] | |
Business Segments [Line Items] | |
Output Purchased (Percent) | 50.00% |
Output Purchased (MW) | MW | 227.5 |
Regulated Operations [Member] | Minnesota Power [Member] | Retail Customers [Member] | Electric [Member] | |
Business Segments [Line Items] | |
Number of Customers | 145,000 |
Regulated Operations [Member] | Minnesota Power [Member] | Municipal Customers [Member] | |
Business Segments [Line Items] | |
Number of Customers | 16 |
Regulated Operations [Member] | SWL&P [Member] | Retail Customers [Member] | Electric [Member] | |
Business Segments [Line Items] | |
Number of Customers | 15,000 |
Regulated Operations [Member] | SWL&P [Member] | Retail Customers [Member] | Natural Gas [Member] | |
Business Segments [Line Items] | |
Number of Customers | 13,000 |
Regulated Operations [Member] | SWL&P [Member] | Retail Customers [Member] | Water [Member] | |
Business Segments [Line Items] | |
Number of Customers | 10,000 |
ALLETE Clean Energy [Member] | |
Business Segments [Line Items] | |
Generating Capacity (MW) | MW | 535 |
Generating Capacity Constructed and Sold (MW) | MW | 107 |
Corporate and Other [Member] | |
Business Segments [Line Items] | |
Land in Minnesota (Acres) | a | 5,000 |
Corporate and Other [Member] | BNI Energy [Domain] | |
Business Segments [Line Items] | |
Number of Customers | 2 |
Corporate and Other [Member] | BNI Energy [Domain] | Square Butte [Member] | |
Business Segments [Line Items] | |
Number of Customers | 1 |
Operations and Significant Ac50
Operations and Significant Accounting Policies - Balance Sheet and Income Statement Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Trade Accounts Receivable [Abstract] | |||||
Billed | $ 105.3 | $ 85.5 | |||
Unbilled | 16.9 | 18.6 | |||
Less: Allowance for Doubtful Accounts | 1 | 1.1 | |||
Total Accounts Receivable | 121.2 | 103 | |||
Inventories [Abstract] | |||||
Fuel | [1] | 58.1 | 29 | ||
Materials and Supplies | 49.1 | 51.5 | |||
Raw Materials | 2.7 | 0 | |||
Finished Goods | 7.5 | 0 | |||
Reserve for Obsolescence | (0.3) | 0 | |||
Total Inventories | 117.1 | 80.5 | |||
Prepayments and Other Current Assets [Abstract] | |||||
Deferred Fuel Adjustment Clause | 10.6 | 16.3 | |||
Construction Costs for Development Project | [2] | 0 | 48.2 | ||
Restricted Cash | [3] | 5.6 | 2.7 | ||
Other Assets | 19.5 | 14.8 | |||
Total Prepayments and Other Current Assets | 35.7 | 82 | |||
Property, Plant and Equipment [Line Items] | |||||
Remaining Net Book Value | 3,669.1 | 3,284.8 | |||
Impairment of Long-Lived Assets [Abstract] | |||||
Total Carrying Value of Real Estate Assets Before Impairment Charge | 83.3 | ||||
Impairment of Real Estate | 36.3 | 0 | $ 0 | ||
Other Non-Current Assets [Abstract] | |||||
Restricted Cash | 8.1 | 5.3 | |||
Other Current Liabilities [Abstract] | |||||
Customer Deposits | 15.1 | 19.7 | |||
Power Purchase Agreements | [4] | 23.3 | 19.4 | ||
Construction Deposits Received for Development Project | [5] | 0 | 54.3 | ||
Other | 47.7 | [6] | 27.4 | ||
Total Other Current Liabilities | 86.1 | 120.8 | |||
Customer Refund Liabilities | 7 | ||||
Other Non-Current Liabilities [Abstract] | |||||
Asset Retirement Obligation | 131.4 | 109.2 | |||
Power Purchase Agreements | [7] | 138.1 | 110.7 | ||
Contingent Consideration | [8] | 36.6 | 0 | ||
Other | 42.9 | 45.1 | |||
Total Other Non-Current Liabilities | 349 | 265 | |||
Business Segments [Line Items] | |||||
Amortization of Power Purchase Agreements | $ 23.2 | 12.7 | 0 | ||
Income Taxes [Abstract] | |||||
More-Likely-Than-Not Percentage | 50.00% | ||||
Current Deferred Income Tax Assets Reclassified to Non-Current Deferred Income Tax Liabilities | $ 39.4 | ||||
Regulated Operations [Member] | |||||
Prepayments and Other Current Assets [Abstract] | |||||
Construction Costs for Development Project | 101.2 | 355.4 | |||
Property, Plant and Equipment [Line Items] | |||||
Remaining Net Book Value | $ 3,114.1 | 2,998.5 | |||
Business Segments [Line Items] | |||||
Alternative Revenue Program, Required Collection Period | 24 months | ||||
ALLETE Clean Energy [Member] | |||||
Prepayments and Other Current Assets [Abstract] | |||||
Construction Costs for Development Project | $ 4 | 1.3 | |||
Property, Plant and Equipment [Line Items] | |||||
Remaining Net Book Value | 447.3 | 196.6 | |||
Business Segments [Line Items] | |||||
Amortization of Power Purchase Agreements | 23.2 | 12.7 | |||
Corporate and Other [Member] | |||||
Prepayments and Other Current Assets [Abstract] | |||||
Construction Costs for Development Project | 4.5 | 4.6 | |||
Property, Plant and Equipment [Line Items] | |||||
Remaining Net Book Value | 95.5 | 89.7 | |||
Impairment of Long-Lived Assets [Abstract] | |||||
Impairment of Real Estate | $ 36.3 | $ 0 | $ 0 | ||
Business Segments [Line Items] | |||||
Minimum Cash Collections Requirement for Real Estate Sales (Percent) | 20.00% | ||||
Minimum [Member] | |||||
Definite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 3 years | ||||
Maximum [Member] | |||||
Definite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 22 years | ||||
Taconite Harbor [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Remaining Net Book Value | $ 100 | ||||
[1] | Fuel consists primarily of coal inventory at Minnesota Power. During 2015, Minnesota Power increased its coal inventory to take advantage of favorable pricing. | ||||
[2] | Construction Costs for Development Project related to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) | ||||
[3] | Restricted Cash includes collateral deposits required under ALLETE Clean Energy’s loan agreements and collateral deposits required for U.S. Water Services’ standby letters of credit. | ||||
[4] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | ||||
[5] | Construction Deposits Received for Development Project relate to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) | ||||
[6] | Increase in 2015 includes customer refund liabilities of approximately $7 million, pending regulatory approval. | ||||
[7] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | ||||
[8] | Contingent Consideration relates to the estimated fair value of the earnings-based payment resulting from the U.S. Water Services acquisition. (See Note 7. Acquisitions and Note 10. Fair Value.) |
Operations and Significant Ac51
Operations and Significant Accounting Policies - Supplemental Statement of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash Paid During the Period for Interest – Net of Amounts Capitalized | $ 59 | $ 51.3 | $ 47.5 |
Cash Paid During the Period for Income Taxes | 0.4 | 5.1 | 0.5 |
Noncash Investing and Financing Activities [Abstract] | |||
Decrease in Accounts Payable for Capital Additions to Property, Plant and Equipment | (40.6) | ||
Increase in Accounts Payable for Capital Additions to Property, Plant and Equipment | 21.7 | 8.3 | |
Capitalized Asset Retirement Costs | 12.4 | 22.4 | (0.7) |
AFUDC–Equity | 3.3 | 7.8 | 4.6 |
ALLETE Common Stock Contributed to the Defined Benefit Pension Plan | 0 | 19.5 | 0 |
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | $ 35.7 | $ 0 | $ 0 |
Operations and Significant Ac52
Operations and Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - Large Power Customers [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Customers | Dec. 31, 2014USD ($) | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Number of Customers | 9 | ||
Accounts Receivable | $ | $ 9.2 | $ 14.7 | |
Largest Customer [Member] | |||
Concentration Risk [Line Items] | |||
Number of Customers | 1 | ||
Largest Customer [Member] | Consolidated Operating Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Major Customer, Percent of Consolidated Revenue | 7.70% | 11.90% | 12.00% |
Business Segments (Details)
Business Segments (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)a | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)a | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Business Segments [Line Items] | |||||||||||
Description of Effect on Previously Reported Segment Information for Change in Composition of Reportable Segments | During the year ended December 31, 2015, management updated our reportable segment presentation to reflect the manner in which we operate, assess, and allocate resources after our recent acquisitions. We now present three reportable segments, Regulated Operations, ALLETE Clean Energy, and U.S. Water Services. Prior period amounts have been revised to conform with the current business segment presentation. | ||||||||||
Number of Reportable Segments | 3 | ||||||||||
Operating Revenue | $ 380.6 | $ 462.5 | $ 323.3 | $ 320 | $ 290.7 | $ 288.9 | $ 260.7 | $ 296.5 | $ 1,486.4 | $ 1,136.8 | $ 1,018.4 |
Net Income (Loss) Attributable to Parent | 18.3 | $ 60.4 | $ 22.5 | $ 39.9 | 32.9 | $ 41.6 | $ 16.8 | $ 33.5 | 141.1 | 124.8 | 104.7 |
Depreciation and Amortization | 170 | 135.7 | 116.6 | ||||||||
Impairment of Real Estate | 36.3 | 0 | 0 | ||||||||
Interest Expense | 64.9 | 54.8 | 50.3 | ||||||||
Equity Earnings in ATC | 16.3 | 19.6 | 20.3 | ||||||||
Income Tax Expense (Benefit) | 25.3 | 36.7 | 28.7 | ||||||||
Assets | 4,907.1 | 4,360.8 | 4,907.1 | 4,360.8 | |||||||
Capital Expenditures | $ 251.8 | 604.3 | |||||||||
Regulated Operations [Member] | |||||||||||
Business Segments [Line Items] | |||||||||||
Number of Operating Segments | 3 | ||||||||||
Operating Revenue | $ 991.2 | 1,003.5 | 925.5 | ||||||||
Net Income (Loss) Attributable to Parent | 131.6 | 123 | 103.6 | ||||||||
Depreciation and Amortization | 135.1 | 118 | 110.2 | ||||||||
Interest Expense | 53.9 | 49.2 | 44.4 | ||||||||
Equity Earnings in ATC | 16.3 | 19.6 | 20.3 | ||||||||
Income Tax Expense (Benefit) | 24.4 | 39 | 35.1 | ||||||||
Assets | 3,862.6 | 3,709.6 | 3,862.6 | 3,709.6 | |||||||
Capital Expenditures | 224.4 | 583.5 | |||||||||
ALLETE Clean Energy [Member] | |||||||||||
Business Segments [Line Items] | |||||||||||
Operating Revenue | 262.1 | 33.2 | 0 | ||||||||
Net Income (Loss) Attributable to Parent | 29.9 | 3.3 | (3.4) | ||||||||
Depreciation and Amortization | 18.7 | 10.1 | 0 | ||||||||
Interest Expense | 3.3 | 0.8 | 0 | ||||||||
Income Tax Expense (Benefit) | 21 | 2.3 | (2.3) | ||||||||
Assets | 504.6 | 291.9 | 504.6 | 291.9 | |||||||
Capital Expenditures | 8.6 | 4.2 | |||||||||
U.S. Water Services [Member] | |||||||||||
Business Segments [Line Items] | |||||||||||
Operating Revenue | 119.8 | 0 | 0 | ||||||||
Net Income (Loss) Attributable to Parent | 0.9 | 0 | 0 | ||||||||
Depreciation and Amortization | 7.3 | 0 | 0 | ||||||||
Interest Expense | 1.4 | 0 | 0 | ||||||||
Income Tax Expense (Benefit) | 0.9 | 0 | 0 | ||||||||
Assets | $ 258.3 | 0 | 258.3 | 0 | |||||||
Capital Expenditures | $ 2.9 | 0 | |||||||||
Corporate and Other [Member] | |||||||||||
Business Segments [Line Items] | |||||||||||
Number of Operating Segments | 2 | ||||||||||
Land in Minnesota (Acres) | a | 5,000 | 5,000 | |||||||||
Operating Revenue | $ 113.3 | 100.1 | 92.9 | ||||||||
Net Income (Loss) Attributable to Parent | (21.3) | (1.5) | 4.5 | ||||||||
Depreciation and Amortization | 8.9 | 7.6 | 6.4 | ||||||||
Impairment of Real Estate | 36.3 | 0 | 0 | ||||||||
Interest Expense | 8.6 | 7.1 | 8.2 | ||||||||
Income Tax Expense (Benefit) | (21) | (4.6) | (4.1) | ||||||||
Assets | $ 281.6 | $ 359.3 | 281.6 | 359.3 | |||||||
Capital Expenditures | 15.9 | 16.6 | |||||||||
Eliminations [Member] | |||||||||||
Business Segments [Line Items] | |||||||||||
Interest Expense | $ (2.3) | $ (2.3) | $ (2.3) |
Property, Plant and Equipment54
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Property, Plant and Equipment [Line Items] | |||||
Construction Work in Progress | [1] | $ 0 | $ 48.2 | ||
Property, Plant and Equipment – Net | 3,669.1 | 3,284.8 | |||
Asset Retirement Obligation [Roll Forward] | |||||
Beginning Obligation | 109.2 | 81.8 | |||
Accretion | 7.3 | 5.5 | |||
Liabilities Recognized | 5.1 | [2] | 23 | [3] | |
Liabilities Settled | (2.6) | (0.5) | |||
Revisions in Estimated Cash Flows | 12.4 | (0.6) | |||
Ending Obligation | 131.4 | 109.2 | |||
Regulated Operations [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | 4,336.7 | 3,903.3 | |||
Construction Work in Progress | 101.2 | 355.4 | |||
Accumulated Depreciation | (1,323.8) | (1,260.2) | |||
Property, Plant and Equipment – Net | $ 3,114.1 | 2,998.5 | |||
Regulated Operations [Member] | Generation [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 10 years | ||||
Regulated Operations [Member] | Generation [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 50 years | ||||
Regulated Operations [Member] | Transmission [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 44 years | ||||
Regulated Operations [Member] | Transmission [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 67 years | ||||
Regulated Operations [Member] | Distribution [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 18 years | ||||
Regulated Operations [Member] | Distribution [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 65 years | ||||
ALLETE Clean Energy [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | $ 467.3 | 203.7 | |||
Construction Work in Progress | 4 | 1.3 | |||
Accumulated Depreciation | (24) | (8.4) | |||
Property, Plant and Equipment – Net | $ 447.3 | 196.6 | |||
ALLETE Clean Energy [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 5 years | ||||
ALLETE Clean Energy [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 44 years | ||||
U.S. Water Services [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | $ 15.6 | 0 | |||
Accumulated Depreciation | (3.4) | 0 | |||
Property, Plant and Equipment – Net | $ 12.2 | 0 | |||
U.S. Water Services [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 3 years | ||||
U.S. Water Services [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 39 years | ||||
Corporate and Other [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | [4] | $ 165.6 | 152.5 | ||
Construction Work in Progress | 4.5 | 4.6 | |||
Accumulated Depreciation | (74.6) | (67.4) | |||
Property, Plant and Equipment – Net | $ 95.5 | $ 89.7 | |||
Corporate and Other [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 3 years | ||||
Corporate and Other [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Lives | 39 years | ||||
[1] | Construction Costs for Development Project related to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) | ||||
[2] | The increase in 2015 is related to the ALLETE Clean Energy wind energy facilities acquisitions in 2015. (See Note 7. Acquisitions.) | ||||
[3] | The increase in 2014 is related to BNI Energy for coal mining expansion and ALLETE Clean Energy due to wind energy facilities acquisitions.(See Note 7. Acquisitions.) | ||||
[4] | Primarily includes BNI Energy and a small amount of non-rate base generation. |
Jointly-Owned Facilities and 55
Jointly-Owned Facilities and Projects (Details) $ in Millions | Dec. 31, 2015USD ($)MW | Dec. 31, 2014USD ($) |
Jointly-Owned Facilities and Projects [Line Items] | ||
Plant in Service | $ 769.3 | $ 474.6 |
Accumulated Depreciation | 198.4 | 210.8 |
Construction Work in Progress | $ 6.9 | 212.1 |
CapX2020 Projects [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
Number of Projects | 3 | |
Completed Project - Prior Years [Member] | CapX2020 Projects [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
Number of Projects | 2 | |
Transmission [Member] | CapX2020 Projects [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
Plant in Service | $ 101.1 | 55.5 |
Accumulated Depreciation | 3.4 | 1.7 |
Construction Work in Progress | $ 0 | $ 44 |
Transmission [Member] | CapX2020 Projects [Member] | Minimum [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
% Ownership | 9.30% | 9.30% |
Transmission [Member] | CapX2020 Projects [Member] | Maximum [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
% Ownership | 14.70% | 14.70% |
Transmission [Member] | Completed Project - Current Year [Member] | CapX2020 Projects [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
Number of Projects | 1 | |
Transmission [Member] | Completed Project - Prior Years [Member] | CapX2020 Projects [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
Number of Projects | 2 | |
Boswell Unit 4 [Member] | Generation [Member] | ||
Jointly-Owned Facilities and Projects [Line Items] | ||
% Ownership | 80.00% | 80.00% |
Generating Capacity (MW) | MW | 585 | |
% Not Owned | 20.00% | |
Plant in Service | $ 668.2 | $ 419.1 |
Accumulated Depreciation | 195 | 209.1 |
Construction Work in Progress | $ 6.9 | $ 168.1 |
Regulatory Matters - Utility Ra
Regulatory Matters - Utility Rates (Details) $ in Millions | Jan. 01, 2013 | Jun. 01, 2011 | Dec. 31, 2015USD ($)CustomersYearsMW | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Minnesota Power [Member] | Bison Wind Energy Center [Member] | |||||
Regulatory Matters [Line Items] | |||||
Generating Capacity (MW) | MW | 497 | ||||
PSCW [Member] | 2012 Wisconsin Rate Case [Member] | SWL&P [Member] | Retail Customers [Member] | |||||
Regulatory Matters [Line Items] | |||||
Approved Rate of Return on Common Equity | 10.90% | ||||
Electric Rates [Member] | MPUC [Member] | 2010 Minnesota Rate Case [Member] | Minnesota Power [Member] | Retail Customers [Member] | |||||
Regulatory Matters [Line Items] | |||||
Approved Rate of Return on Common Equity | 10.38% | ||||
Approved Percentage of Capital Structure Related to Equity | 54.29% | ||||
Electric Rates [Member] | MPUC [Member] | Minnesota Cost Recovery Riders [Member] | Minnesota Power [Member] | Retail Customers [Member] | |||||
Regulatory Matters [Line Items] | |||||
Revenue from Cost Recovery Riders | $ | $ 86 | $ 69.9 | $ 40.5 | ||
Electric Rates [Member] | MPUC [Member] | Annual Automatic Adjustment of Charges [Member] | Minnesota Power [Member] | Retail Customers [Member] | |||||
Regulatory Matters [Line Items] | |||||
Retail Fuel Cost Recovery Collected but Subject to Refund | $ | $ 700 | ||||
Electric Rates [Member] | FERC [Member] | FERC-Approved Wholesale Rates [Member] | Minnesota Power [Member] | Municipal Customers [Member] | |||||
Regulatory Matters [Line Items] | |||||
Number of Customers | 16 | ||||
Length of Notice Required to Terminate (Years) | Years | 3 | ||||
Electric Rates [Member] | FERC [Member] | FERC-Approved Wholesale Rates [Member] | Minnesota Power [Member] | Municipal Customers [Member] | Wholesale Electric Contracts (Expire December 2024) [Member] | |||||
Regulatory Matters [Line Items] | |||||
Number of Customers | 14 | ||||
Electric Rates [Member] | FERC [Member] | FERC-Approved Wholesale Rates [Member] | Minnesota Power [Member] | Municipal Customers [Member] | Wholesale Electric Contracts (Expire December 2024) [Member] | Minimum [Member] | |||||
Regulatory Matters [Line Items] | |||||
Change in Annual Capacity Charge Per Contract, Percentage | (1.00%) | ||||
Electric Rates [Member] | FERC [Member] | FERC-Approved Wholesale Rates [Member] | Minnesota Power [Member] | Municipal Customers [Member] | Wholesale Electric Contracts (Expire December 2024) [Member] | Maximum [Member] | |||||
Regulatory Matters [Line Items] | |||||
Change in Annual Capacity Charge Per Contract, Percentage | 2.00% | ||||
Electric Rates [Member] | FERC [Member] | FERC-Approved Wholesale Rates [Member] | Minnesota Power [Member] | Municipal Customers [Member] | Wholesale Electric Contract (Termination Effective June 2019) [Member] | |||||
Regulatory Matters [Line Items] | |||||
Number of Customers | 1 | ||||
Generating Capacity (MW) | MW | 29 |
Regulatory Matters - Integrated
Regulatory Matters - Integrated Resource Plan (Details) - MPUC [Member] - Integrated Resource Plan [Member] - Natural Gas-Fired [Member] - Minnesota Power [Member] | Dec. 31, 2015MW |
Minimum [Member] | |
Regulatory Matters [Line Items] | |
Generating Capacity (MW) | 200 |
Maximum [Member] | |
Regulatory Matters [Line Items] | |
Generating Capacity (MW) | 300 |
Regulatory Matters - Boswell Me
Regulatory Matters - Boswell Mercury Emission Reduction Plan (Details) - Boswell Unit 4 [Member] $ in Millions | Dec. 31, 2015USD ($) |
Regulatory Matters [Line Items] | |
Total Project Costs | $ 220 |
MPUC [Member] | Boswell Mercury Emissions Reduction Plan [Member] | Minnesota Power [Member] | |
Regulatory Matters [Line Items] | |
Total Project Costs | $ 220 |
Regulatory Matters - Great Nort
Regulatory Matters - Great Northern Transmission Line (GNTL) (Details) - Great Northern Transmission Line [Member] | Dec. 31, 2015MileskV |
Regulatory Matters [Line Items] | |
Transmission Line Length (Miles) | Miles | 220 |
Transmission Line Capacity (kV) | kV | 500 |
MPUC [Member] | Certificate of Need and Route Permit [Member] | Minnesota Power [Member] | |
Regulatory Matters [Line Items] | |
Transmission Line Length (Miles) | Miles | 220 |
Transmission Line Capacity (kV) | kV | 500 |
Regulatory Matters - Conservati
Regulatory Matters - Conservation Improvement Program (CIP) (Details) - MPUC [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Regulatory Matters [Line Items] | |||
Energy CIP Spending Requirement | 1.50% | ||
Annual Energy-Savings Goal | 1.50% | ||
CIP Triennial Filing [Member] | Minnesota Power [Member] | |||
Regulatory Matters [Line Items] | |||
Investment Goal | $ 7.1 | $ 6.9 | $ 6 |
Actual Spending | 6.6 | 7.2 | 6.4 |
CIP Annual Filing [Member] | Minnesota Power [Member] | |||
Regulatory Matters [Line Items] | |||
Financial Incentive | $ 6.2 | $ 8.7 | $ 7.1 |
Regulatory Matters - MISO Retur
Regulatory Matters - MISO Return on Equity Complaints (Details) - FERC [Member] $ in Millions | Dec. 31, 2015USD ($) |
Return on Equity Complaint 1 [Member] | |
Loss Contingencies [Line Items] | |
Proposed Return on Common Equity | 9.15% |
Return on Equity Complaint 2 [Member] | |
Loss Contingencies [Line Items] | |
Proposed Return on Common Equity | 8.67% |
Return on Equity Complaints [Member] | |
Loss Contingencies [Line Items] | |
Proposed Return on Common Equity | 10.32% |
Return on Equity Complaints [Member] | Minnesota Power [Member] | |
Loss Contingencies [Line Items] | |
Estimated Refund Obligation for MISO Revenue | $ 7.2 |
Estimated Refund for MISO Transmission Expense | 4.5 |
Reserve | 2.7 |
Reserve, Portion Attributable to Prior Years | $ 1.5 |
Regulatory Matters - Minnesota
Regulatory Matters - Minnesota Solar Energy Standard (Details) - MPUC [Member] | Dec. 31, 2015MW |
Regulatory Matters [Line Items] | |
Solar Energy Standard Mandate, Overall Mandate Percentage | 1.50% |
Solar Energy Standard Mandate, Small Scale Solar Mandate Percentage | 10.00% |
Maximum [Member] | |
Regulatory Matters [Line Items] | |
Solar Energy Standard Mandate, Qualifying Capacity for Small Scale Solar Mandate (MW) | 0.02 |
Minnesota Solar Energy Standard [Member] | Minnesota Power [Member] | |
Regulatory Matters [Line Items] | |
Number of Projects | 2 |
Solar Energy Standard Mandate, Percentage of Overall Mandate Expected to be Met with Current Filings or Projects | 33.00% |
Solar Energy Standard Mandate, Percentage of Small Scale Solar Mandate Expected to be Met with Current Filings or Projects | 25.00% |
Minnesota Solar Energy Standard - Camp Ripley Project [Member] | Minnesota Power [Member] | |
Regulatory Matters [Line Items] | |
Generating Capacity (MW) | 10 |
Minnesota Solar Energy Standard - Community Solar Garden Project [Member] | Minnesota Power [Member] | |
Regulatory Matters [Line Items] | |
Generating Capacity (MW) | 1 |
Regulatory Matters - Regulatory
Regulatory Matters - Regulatory Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Regulatory Assets and Liabilities [Line Items] | |||
Regulatory Assets and Liabilities Currently Earning a Return | No regulatory assets or liabilities are currently earning a return. | ||
Current Regulatory Asset | $ 10.6 | $ 16.3 | |
Non-Current Regulatory Asset | 372 | 357.3 | |
Total Regulatory Assets | 382.6 | 373.6 | |
Non-Current Regulatory Liability | 105 | 94.2 | |
Wholesale and Retail Contra AFUDC [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Liability | [1] | 58 | 42.9 |
Plant Removal Obligations [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Liability | 22.1 | 22.8 | |
Income Taxes [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Liability | [2] | 6.1 | 13.4 |
Defined Benefit Pension and Other Postretirement Benefit Plans [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Liability | [3] | 0.9 | 3.5 |
Other [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Liability | 17.9 | 11.6 | |
Deferred Fuel Adjustment Clause [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Current Regulatory Asset | [4] | 10.6 | 16.3 |
Defined Benefit Pension and Other Postretirement Benefit Plans [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Asset | [3] | 219.3 | 223.9 |
Income Taxes [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Asset | [2] | 64.2 | 46.6 |
Cost Recovery Riders [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Asset | [5] | 58 | 59.7 |
Asset Retirement Obligation [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Asset | [6] | 21.6 | 17.8 |
PPACA Income Tax Deferral [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Asset | 5 | 5 | |
Other [Member] | |||
Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Asset | $ 3.9 | $ 4.3 | |
[1] | Wholesale and Retail Contra AFUDC represents amortization to offset AFUDC Equity and Debt recorded during the construction period of our cost recovery rider projects prior to placing the projects in service. The regulatory liability will decrease over the remaining depreciable life of the related asset. | ||
[2] | These costs represent the difference between deferred income taxes recognized for financial reporting purposes and amounts previously billed to our customers. This balance will decrease over the remaining life of the related temporary differences and flow through current income taxes. | ||
[3] | Defined benefit pension and other postretirement items included in our Regulated Operations, which are otherwise required to be recognized in accumulated other comprehensive income as actuarial gains and losses as well as prior service costs and credits, are recognized as regulatory assets or regulatory liabilities on the Consolidated Balance Sheet. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. (See Note 17. Pension and Other Postretirement Benefit Plans.) | ||
[4] | Current regulatory assets are included in Prepayments and Other on the Consolidated Balance Sheet. | ||
[5] | The cost recovery rider regulatory assets are revenues not yet collected from our customers primarily due to capital expenditures related to the Bison Wind Energy Center, investment in CapX2020 projects, and the Boswell Unit 4 environmental upgrade and are recognized in accordance with the accounting standards for alternative revenue programs. | ||
[6] | Asset retirement obligations will accrete and be amortized over the lives of the related property with asset retirement obligations. |
Investment in ATC (Details)
Investment in ATC (Details) - USD ($) $ in Millions | Jan. 29, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ALLETE's Investment in ATC [Roll Forward] | ||||
Equity Investment Beginning Balance | $ 121.1 | |||
Cash Investments | 1.6 | $ 3.9 | $ 3.1 | |
Equity Earnings in ATC | 16.3 | 19.6 | 20.3 | |
Equity Investment Ending Balance | 124.5 | 121.1 | ||
Income Statement Data [Abstract] | ||||
ALLETE's Equity in Net Income | $ 16.3 | 19.6 | 20.3 | |
ATC [Member] | ||||
Investment in ATC [Line Items] | ||||
Ownership Percentage | 8.00% | |||
Expected Additional Investment in 2016 | $ 6.2 | |||
ALLETE's Investment in ATC [Roll Forward] | ||||
Equity Investment Beginning Balance | 121.1 | 114.6 | ||
Cash Investments | 1.6 | 3.9 | ||
Equity Earnings in ATC | 16.3 | 19.6 | 20.3 | |
Distributed ATC Earnings | (14.5) | (17) | ||
Equity Investment Ending Balance | 124.5 | 121.1 | 114.6 | |
Balance Sheet Data [Abstract] | ||||
Current Assets | 80.5 | 66.4 | ||
Non-Current Assets | 3,957.6 | 3,728.7 | ||
Total Assets | 4,038.1 | 3,795.1 | ||
Current Liabilities | 330.3 | 313.1 | ||
Long-Term Debt | 1,800 | 1,701 | ||
Other Non-Current Liabilities | 245 | 163.8 | ||
Members' Equity | 1,662.8 | 1,617.2 | ||
Total Liabilities and Members' Equity | 4,038.1 | 3,795.1 | ||
Income Statement Data [Abstract] | ||||
Revenue | 615.8 | 635 | 626.3 | |
Operating Expense | 319.3 | 307.4 | 295.1 | |
Other Expense | 96.1 | 88.9 | 83.6 | |
Net Income | 200.4 | 238.7 | 247.6 | |
ALLETE's Equity in Net Income | $ 16.3 | $ 19.6 | $ 20.3 | |
ATC [Member] | Subsequent Event [Member] | ||||
ALLETE's Investment in ATC [Roll Forward] | ||||
Cash Investments | $ 1.2 |
Investment in ATC - FERC Compla
Investment in ATC - FERC Complaint (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Return on Equity Complaint 1 [Member] | |
Loss Contingencies [Line Items] | |
Proposed Return on Common Equity | 9.15% |
Return on Equity Complaint 2 [Member] | |
Loss Contingencies [Line Items] | |
Proposed Return on Common Equity | 8.67% |
ATC [Member] | |
Loss Contingencies [Line Items] | |
Approved Return on Common Equity | 12.20% |
Sensitivity Analysis [Member] | ATC [Member] | |
Sensitivity Analysis [Line Items] | |
Basis Point Reduction on Approved Rate of Return on Common Equity | 50 |
Sensitivity Analysis [Member] | ATC [Member] | After-tax [Member] | |
Sensitivity Analysis [Line Items] | |
Annual Effect on Future Equity Earnings in ATC | $ 0.5 |
Sensitivity Analysis [Member] | ATC [Member] | Pre-tax [Member] | |
Sensitivity Analysis [Line Items] | |
Annual Effect on Future Equity Earnings in ATC | 0.9 |
ALLETE Transmission Holdings [Member] | ATC [Member] | |
Loss Contingencies [Line Items] | |
Reserve Reflected in Equity Earnings in ATC | 5.2 |
Reserve Reflected in Equity Earnings in ATC, Portion Attributable to Prior Years | $ 2.4 |
Acquisitions Acquisitions (Deta
Acquisitions Acquisitions (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Reason for Business Acquisitions | The acquisitions below are consistent with ALLETE’s stated strategy of investing in energy infrastructure and related services businesses to complement its core regulated utility, balance exposure to business cycles and changing demand, and provide potential long-term earnings growth. | The acquisitions below are consistent with ALLETE’s stated strategy of investing in energy infrastructure and related services businesses to complement its core regulated utility, balance exposure to business cycles and changing demand, and provide potential long-term earnings growth. |
Pro Forma Impact of Business Acquisitions | not significant | not significant |
Acquisitions - U.S. Water Servi
Acquisitions - U.S. Water Services (Details) - USD ($) $ in Millions | Feb. 10, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Acquired [Abstract] | ||||
Goodwill | $ 130.6 | $ 2.9 | ||
Liabilities Assumed [Abstract] | ||||
Restricted Cash - Current | [1] | $ 5.6 | $ 2.7 | |
U.S. Water Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of Acquisition | Feb. 10, 2015 | |||
Name of Acquired Entity | U.S. Water Services | |||
Consideration Transferred | $ 202.3 | |||
Payments to Acquire Business | 166.6 | |||
Contingent Consideration | $ 35.7 | |||
Percent of Results of Operations Reflected in Income Statement | 100.00% | |||
Percentage of Voting Interests Acquired | 100.00% | |||
Assets Acquired [Abstract] | ||||
Cash and Cash Equivalents | $ 0.9 | |||
Accounts Receivable | 16.8 | |||
Inventories | [2] | 13.4 | ||
Other Current Assets | [3] | 5.3 | ||
Property, Plant and Equipment | 10.6 | |||
Intangible Assets | [4] | 83 | ||
Goodwill | [5] | 122.9 | ||
Other Non-Current Assets | 0.2 | |||
Total Assets Acquired | 253.1 | |||
Liabilities Assumed [Abstract] | ||||
Current Liabilities | 19.2 | |||
Non-Current Liabilities | 31.6 | |||
Total Liabilities Assumed | 50.8 | |||
Net Identifiable Assets Acquired | 202.3 | |||
Fair Value Adjustments for Work in Progress and Finished Goods Inventories | 2.7 | |||
Fair Value of Sales Backlog | 1.6 | |||
Restricted Cash - Current | 2.1 | |||
Deductible Goodwill | $ 2.9 | |||
Acquisition-Related Costs | $ 3 | |||
[1] | Restricted Cash includes collateral deposits required under ALLETE Clean Energy’s loan agreements and collateral deposits required for U.S. Water Services’ standby letters of credit. | |||
[2] | Included in Inventories was $2.7 million of fair value adjustments relating to work in progress and finished goods inventories which will be recognized as Cost of Sales within one year from the acquisition date. | |||
[3] | Included in Other Current Assets was $1.6 million relating to the fair value of sales backlog. Sales backlog will be recognized as Cost of Sales within one year from the acquisition date. Also included in Other Current Assets was restricted cash of $2.1 million relating to cash pledged as collateral for standby letters of credit. | |||
[4] | Intangible Assets include customer relationships, patents, non-compete agreements, and trademarks and trade names. (See Note 8. Goodwill and Intangible Assets.) | |||
[5] | For tax purposes, the purchase price allocation resulted in $2.9 million of deductible goodwill. |
Acquisitions - Chanarambie_Viki
Acquisitions - Chanarambie/Viking (Details) $ in Millions | Apr. 15, 2015USD ($)MW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Liabilities Assumed [Abstract] | ||||
Power Purchase Agreements - Non-Current Liability | [1] | $ 138.1 | $ 110.7 | |
Goodwill | 130.6 | 2.9 | ||
Power Purchase Agreements - Current Liability | [2] | 23.3 | $ 19.4 | |
Chanarambie/Viking [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of Acquisition | Apr. 15, 2015 | |||
Percentage of Voting Interests Acquired | 100.00% | |||
Name of Acquired Entity | Chanarambie/Viking | |||
Payments to Acquire Business | $ 48 | |||
Generating Capacity (MW) | MW | 97.5 | |||
Assets Acquired [Abstract] | ||||
Current Assets | $ 4.8 | |||
Property, Plant and Equipment | 103 | |||
Other Non-Current Assets | [3] | 1 | ||
Total Assets Acquired | 108.8 | |||
Liabilities Assumed [Abstract] | ||||
Current Liabilities | [4] | 6.7 | ||
Power Purchase Agreements - Non-Current Liability | 49 | |||
Non-Current Liabilities | 5.1 | |||
Total Liabilities Assumed | 60.8 | |||
Net Identifiable Assets Acquired | 48 | |||
Goodwill | 0.3 | |||
Deductible Goodwill | 0 | |||
Power Purchase Agreements - Current Liability | $ 5.9 | |||
Acquisition-Related Costs | $ 0.2 | |||
Chanarambie/Viking [Member] | Chanarambie/Viking PPA (expires 2018) [Member] | ||||
Business Acquisition [Line Items] | ||||
Generating Capacity (MW) | MW | 12 | |||
Chanarambie/Viking [Member] | Chanarambie/Viking PPA (expires 2023) [Member] | ||||
Business Acquisition [Line Items] | ||||
Generating Capacity (MW) | MW | 85.5 | |||
[1] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | |||
[2] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | |||
[3] | Included in Other Non-Current Assets was $0.3 million of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. | |||
[4] | Current Liabilities included $5.9 million related to the current portion of Power Purchase Agreements. |
Acquisitions - Armenia Mountain
Acquisitions - Armenia Mountain (Details) $ in Millions | Jul. 01, 2015USD ($)MW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Liabilities Assumed [Abstract] | ||||
Restricted Cash - Current | [1] | $ 5.6 | $ 2.7 | |
Restricted Cash - Non-Current | 8.1 | $ 5.3 | ||
Armenia Mountain [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of Acquisition | Jul. 1, 2015 | |||
Percentage of Voting Interests Acquired | 100.00% | |||
Name of Acquired Entity | Armenia Mountain | |||
Payments to Acquire Business | $ 111.1 | |||
Generating Capacity (MW) | MW | 100.5 | |||
Assets Acquired [Abstract] | ||||
Current Assets | [2] | $ 9 | ||
Property, Plant and Equipment | 156.2 | |||
Other Non-Current Assets | [3] | 14.4 | ||
Total Assets Acquired | 179.6 | |||
Liabilities Assumed [Abstract] | ||||
Current Liabilities | 2.9 | |||
Long-Term Debt Due Within One Year | 5.9 | |||
Long-Term Debt | 55 | |||
Other Non-Current Liabilities | 4.7 | |||
Total Liabilities Assumed | 68.5 | |||
Net Identifiable Assets Acquired | 111.1 | |||
Power Purchase Agreements - Current Asset | 1 | |||
Restricted Cash - Current | 6 | |||
Power Purchase Agreements - Non-Current Asset | 8.2 | |||
Restricted Cash - Non-Current | $ 6.1 | |||
Goodwill | immaterial | |||
Deductible Goodwill | $ 0 | |||
Acquisition-Related Costs | $ 1.6 | |||
[1] | Restricted Cash includes collateral deposits required under ALLETE Clean Energy’s loan agreements and collateral deposits required for U.S. Water Services’ standby letters of credit. | |||
[2] | Included in Current Assets was $1.0 million related to the current portion of Power Purchase Agreements and $6.0 million of restricted cash related to collateral deposits required under its loan agreement. | |||
[3] | Included in Other Non-Current Assets was $8.2 million related to the non-current portion of Power Purchase Agreements, $6.1 million of restricted cash related to collateral deposits required under its loan agreements, and an immaterial amount of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. |
Acquisitions - A and W Technolo
Acquisitions - A and W Technologies (Details) - USD ($) $ in Millions | Nov. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Acquired [Abstract] | ||||
Goodwill | $ 130.6 | $ 2.9 | ||
A and W Technologies [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of Acquisition | Nov. 1, 2015 | |||
Percentage of Voting Interests Acquired | 100.00% | |||
Consideration Transferred | $ 9.2 | |||
Payments to Acquire Business | 8.2 | |||
Payment Due in April 2016 | 1 | |||
Assets Acquired [Abstract] | ||||
Current Assets | 1 | |||
Property, Plant and Equipment | 0.1 | |||
Intangible Assets | [1] | 3.9 | ||
Goodwill | [2] | 4.3 | ||
Total Assets Acquired | 9.3 | |||
Liabilities Assumed [Abstract] | ||||
Current Liabilities | 0.1 | |||
Total Liabilities Assumed | 0.1 | |||
Net Identifiable Assets Acquired | 9.2 | |||
Deductible Goodwill | $ 4.3 | |||
Acquisition-Related Costs | immaterial | |||
[1] | Intangible Assets include customer relationships and non-compete agreements. (See Note 8. Goodwill and Intangible Assets.) | |||
[2] | For tax purposes, the purchase price allocation resulted in $4.3 million of deductible goodwill. |
Acquisitions - Wind Constructio
Acquisitions - Wind Construction Project (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 30, 2014USD ($)MW | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Business Acquisition [Line Items] | |||||||||||||
Revenue | $ 380.6 | $ 462.5 | $ 323.3 | $ 320 | $ 290.7 | $ 288.9 | $ 260.7 | $ 296.5 | $ 1,486.4 | $ 1,136.8 | $ 1,018.4 | ||
Assets Acquired [Abstract] | |||||||||||||
Construction Work in Progress | [1] | 0 | 48.2 | 0 | 48.2 | ||||||||
Goodwill | 130.6 | 2.9 | 130.6 | 2.9 | |||||||||
Liabilities Assumed [Abstract] | |||||||||||||
Cost of Sales | 302.3 | 77.9 | $ 71.2 | ||||||||||
Contract Billings | [2] | $ 0 | 54.3 | 0 | 54.3 | ||||||||
Wind Construction Project [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Date of Acquisition | November 2,014 | ||||||||||||
Payments to Acquire Business | $ 27 | ||||||||||||
Generating Capacity (MW) | MW | 107 | ||||||||||||
Number of Wind Turbines | 43 | ||||||||||||
Revenue | 197.7 | ||||||||||||
Assets Acquired [Abstract] | |||||||||||||
Cash and Cash Equivalents | $ 3.6 | ||||||||||||
Construction Work in Progress | 23.4 | 48.2 | 48.2 | ||||||||||
Goodwill | 0 | ||||||||||||
Liabilities Assumed [Abstract] | |||||||||||||
Total Liabilities Assumed | $ 0 | ||||||||||||
Cost of Sales | $ 162.9 | ||||||||||||
Contract Billings | $ 54.3 | $ 54.3 | |||||||||||
[1] | Construction Costs for Development Project related to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) | ||||||||||||
[2] | Construction Deposits Received for Development Project relate to ALLETE Clean Energy’s project to construct a wind energy facility which was sold in 2015. (See Note 7. Acquisitions.) |
Acquisitions - ACE Wind (Detail
Acquisitions - ACE Wind (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2014USD ($) | Jan. 31, 2014USD ($)MW | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | ||
Liabilities Assumed [Abstract] | |||||
Power Purchase Agreements - Non-Current Liability | [1] | $ 110.7 | $ 138.1 | ||
Goodwill | 2.9 | 130.6 | |||
Power Purchase Agreements - Current Liability | [2] | 19.4 | $ 23.3 | ||
Armenia Mountain [Member] | |||||
Liabilities Assumed [Abstract] | |||||
Purchase Option | $ 0.3 | ||||
ACE Wind [Member] | |||||
Business Acquisition [Line Items] | |||||
Date of Acquisition | January 2,014 | ||||
Payments to Acquire Businesses | $ 26.9 | ||||
Number of Wind Energy Facilities Acquired | 3 | ||||
Assets Acquired [Abstract] | |||||
Cash and Cash Equivalents | $ 3.8 | ||||
Other Current Assets | 14.3 | ||||
Property, Plant and Equipment | 156.9 | ||||
Other Non-Current Assets | [3] | 7.5 | |||
Total Assets Acquired | 182.5 | ||||
Liabilities Assumed [Abstract] | |||||
Current Liabilities | [4] | 15.2 | |||
Long-Term Debt Due Within One Year | 2.2 | ||||
Long-Term Debt | 21.1 | ||||
Power Purchase Agreements - Non-Current Liability | 99.4 | ||||
Other Non-Current Liabilities | 10.6 | ||||
Non-Controlling Interest | [5] | 7.1 | |||
Total Liabilities and Non-Controlling Interest Assumed | 155.6 | ||||
Net Identifiable Assets Acquired | 26.9 | ||||
Goodwill | 2.9 | ||||
Deductible Goodwill | 0 | ||||
Power Purchase Agreements - Current Liability | $ 12.4 | ||||
Acquisition-Related Costs | $ 1.4 | ||||
Purchase of Non-Controlling Interest | $ 6 | ||||
Storm Lake II [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Storm Lake II | ||||
Generating Capacity (MW) | MW | 77 | ||||
Lake Benton [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Lake Benton | ||||
Generating Capacity (MW) | MW | 104 | ||||
Condon [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Condon | ||||
Generating Capacity (MW) | MW | 50 | ||||
[1] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | ||||
[2] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | ||||
[3] | Included in Other Non-Current Assets was $0.3 million for the option to purchase Armenia Mountain, and goodwill of $2.9 million. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. | ||||
[4] | Current Liabilities included $12.4 million related to the current portion of Power Purchase Agreements. | ||||
[5] | The purchase price accounting valued the non-controlling interest related to Lake Benton, Storm Lake II and Condon at fair value using the discounted cash flow method. |
Acquisitions - Storm Lake I (De
Acquisitions - Storm Lake I (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014USD ($)MW | Dec. 31, 2014USD ($)MW | Dec. 31, 2015USD ($) | ||
Liabilities Assumed [Abstract] | ||||
Power Purchase Agreements - Non-Current Liability | [1] | $ 110.7 | $ 110.7 | $ 138.1 |
Restricted Cash - Non-Current | 5.3 | 5.3 | 8.1 | |
Power Purchase Agreements - Current Liability | [2] | $ 19.4 | $ 19.4 | $ 23.3 |
Storm Lake I [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of Acquisition | December 2,014 | |||
Name of Acquired Entity | Storm Lake I | |||
Payments to Acquire Business | $ 15.1 | |||
Generating Capacity (MW) | MW | 108 | 108 | ||
Assets Acquired [Abstract] | ||||
Cash and Cash Equivalents | $ 0.4 | $ 0.4 | ||
Other Current Assets | 4.7 | 4.7 | ||
Property, Plant and Equipment | 47.3 | 47.3 | ||
Other Non-Current Assets | [3] | 11.4 | 11.4 | |
Total Assets Acquired | 63.8 | 63.8 | ||
Liabilities Assumed [Abstract] | ||||
Current Liabilities | [4] | 8.2 | 8.2 | |
Power Purchase Agreements - Non-Current Liability | 23.5 | 23.5 | ||
Non-Current Liabilities | 17 | 17 | ||
Total Liabilities Assumed | 48.7 | 48.7 | ||
Net Identifiable Assets Acquired | 15.1 | 15.1 | ||
Restricted Cash - Non-Current | $ 0.4 | 0.4 | ||
Goodwill | immaterial | |||
Deductible Goodwill | $ 0 | 0 | ||
Power Purchase Agreements - Current Liability | $ 7.5 | $ 7.5 | ||
Acquisition-Related Costs | immaterial | |||
[1] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | |||
[2] | Power Purchase Agreements acquired in conjunction with the ALLETE Clean Energy wind energy facilities acquisitions. (See Note 7. Acquisitions.) | |||
[3] | Included in Other Non-Current Assets was $0.4 million of restricted cash and an immaterial amount of goodwill. For tax purposes, the purchase price allocation resulted in no allocation to goodwill. | |||
[4] | Current Liabilities included $7.5 million related to the current portion of Power Purchase Agreements. |
Goodwill and Intangible Asset74
Goodwill and Intangible Assets - Goodwill (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 2.9 |
Acquired Goodwill | 127.7 |
Ending Balance | 130.6 |
ALLETE Clean Energy [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 2.9 |
Acquired Goodwill | 0.4 |
Ending Balance | 3.3 |
U.S. Water Services [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 0 |
Acquired Goodwill | 127.3 |
Ending Balance | $ 127.3 |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Definite-Lived Intangible Assets [Roll Forward] | |||
Beginning Balance | $ 1.9 | ||
Additions | [1] | 70.4 | |
Amortization | (4) | ||
Other | [2] | (0.3) | |
Ending Balance | 68 | ||
Intangible Assets [Abstract] | |||
Total Intangible Assets | 84.6 | $ 1.9 | |
Total Intangible Assets, Additions | [1] | 87 | |
Total Intangible Assets, Amortization | (4) | ||
Total Intangible Assets, Other | [2] | (0.3) | |
Accumulated Amortization | 4.1 | $ 0.1 | |
Definite-Lived Intangible Assets, Estimated Annual Amortization Expense [Abstract] | |||
2,016 | 5.1 | ||
2,017 | 5 | ||
2,018 | 4.7 | ||
2,019 | 4.4 | ||
2,020 | 4.2 | ||
Thereafter | $ 44.6 | ||
Minimum [Member] | |||
Intangible Assets [Abstract] | |||
Useful Life (Years) | 3 years | ||
Maximum [Member] | |||
Intangible Assets [Abstract] | |||
Useful Life (Years) | 22 years | ||
Weighted Average [Member] | |||
Intangible Assets [Abstract] | |||
Useful Life (Years) | 21 years | ||
Trademarks and Trade Names [Member] | |||
Indefinite-Lived Intangible Assets [Roll Forward] | |||
Beginning Balance | $ 0 | ||
Additions | [1] | 16.6 | |
Other | [2] | 0 | |
Ending Balance | 16.6 | ||
Customer Relationships [Member] | |||
Definite-Lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 0 | ||
Additions | [1] | 64 | |
Amortization | (3.2) | ||
Other | [2] | 0 | |
Ending Balance | 60.8 | ||
Intangible Assets [Abstract] | |||
Total Intangible Assets, Amortization | $ (3.2) | ||
Useful Life (Years) | 22 years | ||
Developed Technology and Other [Member] | |||
Definite-Lived Intangible Assets [Roll Forward] | |||
Beginning Balance | [3] | $ 1.9 | |
Additions | [1],[3] | 6.4 | |
Amortization | [3] | (0.8) | |
Other | [2],[3] | (0.3) | |
Ending Balance | [3] | 7.2 | |
Intangible Assets [Abstract] | |||
Total Intangible Assets, Amortization | [3] | $ (0.8) | |
Developed Technology and Other [Member] | Minimum [Member] | |||
Intangible Assets [Abstract] | |||
Useful Life (Years) | 3 years | ||
Developed Technology and Other [Member] | Maximum [Member] | |||
Intangible Assets [Abstract] | |||
Useful Life (Years) | 13 years | ||
Developed Technology and Other [Member] | Weighted Average [Member] | |||
Intangible Assets [Abstract] | |||
Useful Life (Years) | 9 years | ||
[1] | Additions are primarily the result of the U.S. Water Services acquisition. (See Note 7. Acquisitions.) | ||
[2] | Armenia Mountain was acquired on July 1, 2015, at which time the purchase option intangible asset was reclassified as a component of the acquisition consideration. | ||
[3] | Developed Technology and Other includes patents, non-compete agreements, and land easements. |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Investments [Abstract] | ||||
ALLETE Properties | $ 50.1 | [1] | $ 88.2 | |
Available-for-sale Securities | 18.5 | [2] | 18.9 | $ 17.7 |
Cash Equivalents | 2 | 2.9 | ||
Other | 4 | 4.4 | ||
Total Other Investments | 74.6 | 114.4 | ||
Impairment of Real Estate | 36.3 | $ 0 | $ 0 | |
Available-for-sale Corporate Debt Securities, Maturities [Abstract] | ||||
One Year or Less | 0 | |||
One Year to Less Than Three Years | 1 | |||
Three Years to Less Than Five Years | 3.2 | |||
Five or More Years | $ 6.7 | |||
[1] | In 2015, ALLETE Properties recorded a $36.3 million non-cash impairment charge related to its real estate assets. (See Note 1. Operations and Significant Accounting Policies.) | |||
[2] | As of December 31, 2015, the aggregate amount of available-for-sale corporate debt securities maturing in one year or less was none, in one year to less than three years was $1.0 million, in three years to less than five years was $3.2 million, and in five or more years was $6.7 million. |
Investments - Available-for-sal
Investments - Available-for-sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Available-for-sale Securities [Abstract] | ||||
Cost | $ 20 | $ 19.6 | $ 18.3 | |
Gross Unrealized Gain | 0 | 0.2 | 0 | |
Gross Unrealized Loss | 1.5 | 0.9 | 0.6 | |
Fair Value | 18.5 | [1] | 18.9 | 17.7 |
Net Proceeds | 1.7 | 3.6 | 16.1 | |
Gross Realized Gain | 0.1 | 0.2 | 2.2 | |
Gross Realized Loss | $ 0 | $ 0 | $ 0 | |
[1] | As of December 31, 2015, the aggregate amount of available-for-sale corporate debt securities maturing in one year or less was none, in one year to less than three years was $1.0 million, in three years to less than five years was $3.2 million, and in five or more years was $6.7 million. |
Fair Value - Recurring Fair Val
Fair Value - Recurring Fair Value Measures (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Investments [Abstract] | |||||
Cash Equivalents | $ 2 | $ 2.9 | |||
Liabilities [Abstract] | |||||
U.S. Water Services Contingent Consideration | [1] | 36.6 | 0 | ||
Recurring Fair Value Measures [Member] | |||||
Investments [Abstract] | |||||
Available-for-sale - Equity Securities | 7.6 | [2] | 8.1 | [3] | |
Available-for-sale - Corporate Debt Securities | 10.9 | [2] | 10.8 | [3] | |
Cash Equivalents | 2 | [2] | 2.9 | [3] | |
Total Fair Value of Assets | 20.5 | 21.8 | |||
Liabilities [Abstract] | |||||
Deferred Compensation | 16.1 | [4] | 16.2 | [5] | |
Derivatives – Interest Rate Swap | [6] | 0.3 | |||
U.S. Water Services Contingent Consideration | [4] | 36.6 | |||
Total Fair Value of Liabilities | 52.7 | 16.5 | |||
Total Net Fair Value of Assets (Liabilities) | (32.2) | 5.3 | |||
Activity in Level 3 [Roll Forward] | |||||
Fair Value Hierarchy Transfers, All Levels | 0 | ||||
Recurring Fair Value Measures [Member] | Level 1 [Member] | |||||
Investments [Abstract] | |||||
Available-for-sale - Equity Securities | 7.6 | [2] | 8.1 | [3] | |
Available-for-sale - Corporate Debt Securities | 0 | [2] | 0 | [3] | |
Cash Equivalents | 2 | [2] | 2.9 | [3] | |
Total Fair Value of Assets | 9.6 | 11 | |||
Liabilities [Abstract] | |||||
Deferred Compensation | 0 | [4] | 0 | [5] | |
Derivatives – Interest Rate Swap | [6] | 0 | |||
U.S. Water Services Contingent Consideration | [4] | 0 | |||
Total Fair Value of Liabilities | 0 | 0 | |||
Total Net Fair Value of Assets (Liabilities) | 9.6 | 11 | |||
Recurring Fair Value Measures [Member] | Level 2 [Member] | |||||
Investments [Abstract] | |||||
Available-for-sale - Equity Securities | 0 | [2] | 0 | [3] | |
Available-for-sale - Corporate Debt Securities | 10.9 | [2] | 10.8 | [3] | |
Cash Equivalents | 0 | [2] | 0 | [3] | |
Total Fair Value of Assets | 10.9 | 10.8 | |||
Liabilities [Abstract] | |||||
Deferred Compensation | 16.1 | [4] | 16.2 | [5] | |
Derivatives – Interest Rate Swap | [6] | 0.3 | |||
U.S. Water Services Contingent Consideration | [4] | 0 | |||
Total Fair Value of Liabilities | 16.1 | 16.5 | |||
Total Net Fair Value of Assets (Liabilities) | (5.2) | (5.7) | |||
Recurring Fair Value Measures [Member] | Level 3 [Member] | |||||
Investments [Abstract] | |||||
Available-for-sale - Equity Securities | 0 | [2] | 0 | [3] | |
Available-for-sale - Corporate Debt Securities | 0 | [2] | 0 | [3] | |
Cash Equivalents | 0 | [2] | 0 | [3] | |
Total Fair Value of Assets | 0 | 0 | |||
Liabilities [Abstract] | |||||
Deferred Compensation | 0 | [4] | 0 | [5] | |
Derivatives – Interest Rate Swap | [6] | 0 | |||
U.S. Water Services Contingent Consideration | [4] | 36.6 | |||
Total Fair Value of Liabilities | 36.6 | 0 | |||
Total Net Fair Value of Assets (Liabilities) | (36.6) | 0 | |||
Activity in Level 3 [Roll Forward] | |||||
Balance as of December 31, 2014 | 0 | ||||
Activity in Level 3 | 0 | ||||
Balance as of December 31, 2015 | 36.6 | $ 0 | |||
Recurring Fair Value Measures [Member] | Level 3 [Member] | Recognition of U.S. Water Services Contingent Consideration [Member] | |||||
Activity in Level 3 [Roll Forward] | |||||
Activity in Level 3 | 35.7 | ||||
Recurring Fair Value Measures [Member] | Level 3 [Member] | Accretion Expense [Member] | |||||
Activity in Level 3 [Roll Forward] | |||||
Activity in Level 3 | [7] | 2.4 | |||
Recurring Fair Value Measures [Member] | Level 3 [Member] | Changes in Cash Flow Projections [Member] | |||||
Activity in Level 3 [Roll Forward] | |||||
Activity in Level 3 | $ (1.5) | ||||
[1] | Contingent Consideration relates to the estimated fair value of the earnings-based payment resulting from the U.S. Water Services acquisition. (See Note 7. Acquisitions and Note 10. Fair Value.) | ||||
[2] | Included in Other Investments on the Consolidated Balance Sheet. | ||||
[3] | Included in Other Investments on the Consolidated Balance Sheet. | ||||
[4] | Included in Other Non-Current Liabilities on the Consolidated Balance Sheet. | ||||
[5] | Included in Other Non-Current Liabilities on the Consolidated Balance Sheet. | ||||
[6] | Included in Current Liabilities - Other on the Consolidated Balance Sheet. | ||||
[7] | Included in Interest Expense on the Consolidated Statement of Income. |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value of Financial Instruments [Line Items] | ||
Long-Term Debt, Including Current Portion - Carrying Amount | $ 1,605 | $ 1,373.5 |
Level 2 [Member] | ||
Fair Value of Financial Instruments [Line Items] | ||
Long-Term Debt, Including Current Portion - Fair Value | $ 1,676 | $ 1,484.5 |
Fair Value - Nonrecurring Fair
Fair Value - Nonrecurring Fair Value Measures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Nonrecurring Fair Value Measured [Line Items] | |||
Equity Method Investment, Carrying Amount | $ 124.5 | $ 121.1 | |
Goodwill, Carrying Amount | 130.6 | 2.9 | |
Intangible Assets, Carrying Amount | 84.6 | 1.9 | |
Remaining Net Book Value | 3,669.1 | 3,284.8 | |
Taconite Harbor [Member] | |||
Nonrecurring Fair Value Measured [Line Items] | |||
Remaining Net Book Value | 100 | ||
Nonrecurring Fair Value Measurements [Member] | |||
Nonrecurring Fair Value Measured [Line Items] | |||
Equity Method Investment, Impairment | 0 | ||
Goodwill, Carrying Amount | 130.6 | 2.9 | |
Goodwill, Impairment | 0 | ||
Intangible Assets, Carrying Amount | 84.6 | 1.9 | |
Intangible Assets, Impairment | 0 | ||
Property, Plant and Equipment, Impairment | 0 | 0 | |
Nonrecurring Fair Value Measurements [Member] | Taconite Harbor [Member] | |||
Nonrecurring Fair Value Measured [Line Items] | |||
Remaining Net Book Value | $ 100 | ||
ATC [Member] | |||
Nonrecurring Fair Value Measured [Line Items] | |||
Ownership Percentage | 8.00% | ||
Equity Method Investment, Carrying Amount | $ 124.5 | 121.1 | $ 114.6 |
ATC [Member] | Nonrecurring Fair Value Measurements [Member] | |||
Nonrecurring Fair Value Measured [Line Items] | |||
Ownership Percentage | 8.00% | ||
Equity Method Investment, Carrying Amount | $ 124.5 | $ 121.1 | |
Equity Method Investment, Impairment | $ 0 |
Short-Term and Long-Term Debt -
Short-Term and Long-Term Debt - Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Short-term Debt | $ 37.9 | $ 104.4 |
Bank Lines of Credit [Member] | ||
Lines of Credit [Line Items] | ||
Maximum Borrowing Capacity | 408.4 | 408.4 |
Pledged for Standby Letters of Credit | 12.4 | 47.5 |
Draws | $ 1.6 | $ 3.7 |
Short-Term and Long-Term Debt82
Short-Term and Long-Term Debt - Long-Term Debt (Details) $ in Millions | Nov. 05, 2015USD ($) | Sep. 24, 2015USD ($) | Aug. 25, 2015USD ($) | Dec. 31, 2015USD ($) | Jul. 01, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||||
Long-Term Debt | $ 1,568.7 | $ 1,272.8 | ||||
Required Indebtedness to Total Capitalization Ratio | 0.65 | |||||
Proceeds from Issuance of First Mortgage Bond | $ 100 | |||||
Long-term Debt Maturities [Abstract] | ||||||
Long-Term Debt, Maturing in 2016 | $ 36.3 | |||||
Long-Term Debt, Maturing in 2017 | 193.6 | |||||
Long-Term Debt, Maturing in 2018 | 64.1 | |||||
Long-Term Debt, Maturing in 2019 | 56.5 | |||||
Long-Term Debt, Maturing in 2020 | 103 | |||||
Long-Term Debt, Maturing Thereafter | $ 1,151.5 | |||||
Armenia Mountain Senior Secured Notes 3.26% Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Senior Secured Notes | $ 84.5 | |||||
Interest Rate | 3.26% | |||||
ALLETE Term Loan Variable Rate Due 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal Amount | $ 125 | |||||
Description of Variable Rate Basis | LIBOR | |||||
Basis Spread on Variable Rate | 0.625% | |||||
Debt Refinanced | $ 75 | |||||
Required Indebtedness to Total Capitalization Ratio | 0.65 | |||||
Cross-Default Amount | $ 35 | |||||
ALLETE First Mortgage Bonds 2.80% Due September 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of First Mortgage Bond | $ 40 | |||||
Interest Rate | 2.80% | |||||
ALLETE First Mortgage Bonds 3.86% Due September 2030 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of First Mortgage Bond | $ 60 | |||||
Interest Rate | 3.86% | |||||
Armenia Mountain [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-Term Debt | $ 60.9 | |||||
Long-Term Debt Due Within One Year | $ 5.9 |
Short-Term and Long-Term Debt83
Short-Term and Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total Long-Term Debt | $ 1,605 | $ 1,373.5 |
Less: Due Within One Year | 36.3 | 100.7 |
Net Long-Term Debt | 1,568.7 | 1,272.8 |
First Mortgage Bonds - 7.70% Series Due 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 20 | 20 |
First Mortgage Bonds - 1.83% Series Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 50 | 50 |
First Mortgage Bonds - 8.17% Series Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 42 | 42 |
First Mortgage Bonds - 5.28% Series Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 35 | 35 |
First Mortgage Bonds - 2.80% Series Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 40 | 0 |
First Mortgage Bonds - 4.85% Series Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 15 | 15 |
First Mortgage Bonds - 3.02% Series Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 60 | 60 |
First Mortgage Bonds - 3.40% Series Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 75 | 75 |
First Mortgage Bonds - 6.02% Series Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 75 | 75 |
First Mortgage Bonds - 3.69% Series Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 60 | 60 |
First Mortgage Bonds - 4.90% Series Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 30 | 30 |
First Mortgage Bonds - 5.10% Series Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 30 | 30 |
First Mortgage Bonds - 3.20% Series Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 75 | 75 |
First Mortgage Bonds - 5.99% Series Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 60 | 60 |
First Mortgage Bonds - 3.30% Series Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 40 | 40 |
First Mortgage Bonds - 3.74% Series Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 50 | 50 |
First Mortgage Bonds - 3.86% Series Due 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 60 | 0 |
First Mortgage Bonds - 5.69% Series Due 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 50 | 50 |
First Mortgage Bonds - 6.00% Series Due 2040 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 35 | 35 |
First Mortgage Bonds - 5.82% Series Due 2040 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 45 | 45 |
First Mortgage Bonds - 4.08% Series Due 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 85 | 85 |
First Mortgage Bonds - 4.21% Series Due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 60 | 60 |
First Mortgage Bonds - 4.95% Series Due 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 40 | 40 |
First Mortgage Bonds - 5.05% Series Due 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 40 | 40 |
First Mortgage Bonds - 4.39% Series Due 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 50 | 50 |
Unsecured Term Loan Variable Rate Due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 0 | 75 |
Unsecured Term Loan Variable Rate Due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 125 | 0 |
Senior Unsecured Notes 5.99% Due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 50 | 50 |
Variable Demand Revenue Refunding Bonds Series 1997 A Due 2015 – 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 13.5 | 24.6 |
Industrial Development Variable Rate Demand Refunding Revenue Bonds Series 2006, Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 27.8 | 27.8 |
Armenia Mountain Senior Secured Notes 3.26% Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 83.3 | 0 |
SWL&P First Mortgage Bonds 4.15% Series Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 15 | 15 |
Other Long-Term Debt, 0.08% – 7.45% Due 2016 – 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | $ 68.4 | $ 59.1 |
Short-Term and Long-Term Debt84
Short-Term and Long-Term Debt - Financial Covenants (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Covenants [Abstract] | |
Required Indebtedness to Total Capitalization Ratio | 0.65 |
Actual Indebtedness to Total Capitalization Ratio | 0.47 |
Compliance with Financial Covenants | ALLETE was in compliance with its financial covenants. |
Commitments, Guarantees and C85
Commitments, Guarantees and Contingencies - Power Purchase Agreements (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)MWhYearsMW | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Square Butte PPA (expires 2026) [Member] | Square Butte Coal-fired Unit [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Entitlement | 50.00% | ||
Square Butte [Member] | Square Butte PPA (expires 2026) [Member] | |||
Power Purchase Agreements [Line Items] | |||
PPA Counterparty Debt Outstanding | $ | $ 376.4 | ||
PPA Counterparty Annual Debt Service | $ | 45 | ||
Cost of Purchased Power | $ | 77.8 | $ 70.1 | $ 71.1 |
Pro Rata Share of PPA Counterparty Interest Expense | $ | $ 10.1 | $ 10.5 | $ 10.5 |
Square Butte [Member] | Square Butte PPA (expires 2026) [Member] | Square Butte Coal-fired Unit [Member] | |||
Power Purchase Agreements [Line Items] | |||
Generating Unit Capacity (MW) | 455 | ||
Minnkota Power [Member] | Square Butte PPA (expires 2026) [Member] | Minnkota Sales Agreement [Member] | Square Butte Coal-fired Unit [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Entitlement | 28.00% | 23.00% | |
Minnkota Power [Member] | Minnkota Power PPA (expires May 2020) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
NextEra Energy, Inc. [Member] | |||
Power Purchase Agreements [Line Items] | |||
Number of PPAs | 2 | ||
NextEra Energy, Inc. [Member] | Oliver Wind I PPA (expires 2031) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
Fixed Capacity Charges | $ | $ 0 | ||
NextEra Energy, Inc. [Member] | Oliver Wind II PPA (expires 2032) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 48 | ||
Fixed Capacity Charges | $ | $ 0 | ||
Manitoba Hydro [Member] | |||
Power Purchase Agreements [Line Items] | |||
Number of PPAs | 5 | ||
Manitoba Hydro [Member] | Manitoba Hydro PPA (expires May 2020) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
Manitoba Hydro [Member] | Manitoba Hydro PPA (expires April 2022) [Member] | Minimum [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MWh) | MWh | 1,000,000 | ||
Manitoba Hydro [Member] | Manitoba Hydro PPA (expires 2035) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 250 | ||
Term of Contract (Years) | Years | 15 | ||
Manitoba Hydro [Member] | Manitoba Hydro PPA (expires 2040) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 133 | ||
Term of Contract (Years) | Years | 20 | ||
Manitoba Hydro [Member] | Manitoba Hydro PPA Beginning June 2017 (expires May 2020) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
Great River Energy [Member] | Great River Energy Capacity and Energy PPA (expires May 2020) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
Great River Energy [Member] | Great River Energy Capacity Only PPA Beginning June 2016 (expires May 2020) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
Great River Energy [Member] | Great River Energy Capacity Only PPA Beginning June 2017 (expires May 2020) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
TransAlta [Member] | TransAlta Off-Peak Hours PPA (expires December 2019) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 50 | ||
TransAlta [Member] | TransAlta On-Peak Hours PPA (expire December 2019) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Purchased (MW) | 100 | ||
Basin [Member] | Basin Power Sales Agreement (expires April 2020) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Sold (MW) | 100 | ||
Term of Contract (Years) | Years | 10 | ||
Basin [Member] | Basin Power Sales Agreement (expires 2018) [Member] | |||
Power Purchase Agreements [Line Items] | |||
Output Being Sold (MW) | 100 | ||
Term of Contract (Years) | Years | 2 |
Commitments, Guarantees and C86
Commitments, Guarantees and Contingencies - Coal, Rail and Shipping Contracts (Details) - Coal Supply and Transportation Agreements [Member] $ in Millions | Dec. 31, 2015USD ($) |
Coal, Rail and Shipping Contracts [Line Items] | |
Minimum Annual Payment Obligation in 2016 | $ 40.7 |
Minimum Annual Payment Obligation in 2017 | 27.6 |
Minimum Annual Payment Obligation in 2018 | 28.3 |
Minimum Annual Payment Obligation in 2019 | $ 1.8 |
Commitments, Guarantees and C87
Commitments, Guarantees and Contingencies - Leasing Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leasing Agreements [Line Items] | |||
Minimum Lease Payments in 2016 | $ 14 | ||
Minimum Lease Payments in 2017 | 12.6 | ||
Minimum Lease Payments in 2018 | 11.1 | ||
Minimum Lease Payments in 2019 | 9.9 | ||
Minimum Lease Payments in 2020 | 6.9 | ||
Minimum Lease Payments Thereafter | 23.2 | ||
Total Lease Expense | 17.3 | $ 14.8 | $ 13.8 |
BNI Energy Dragline [Member] | |||
Leasing Agreements [Line Items] | |||
Minimum Lease Payments in 2016 | 2.8 | ||
Minimum Lease Payments in 2017 | 2.8 | ||
Minimum Lease Payments in 2018 | 2.8 | ||
Minimum Lease Payments in 2019 | 2.8 | ||
Minimum Lease Payments in 2020 | 2.8 | ||
Minimum Lease Payments Thereafter | 19.6 | ||
Termination Fee | $ 3 |
Commitments, Guarantees and C88
Commitments, Guarantees and Contingencies - Transmission (Details) $ in Millions | Dec. 31, 2015USD ($)MileskV |
CapX2020 [Member] | |
Transmission [Line Items] | |
Number of Projects | 3 |
Total Project Costs | $ 100 |
Great Northern Transmission Line [Member] | |
Transmission [Line Items] | |
Transmission Line Length (Miles) | Miles | 220 |
Transmission Line Capacity (kV) | kV | 500 |
Great Northern Transmission Line [Member] | Minimum [Member] | |
Transmission [Line Items] | |
Total Project Cost | $ 560 |
Great Northern Transmission Line [Member] | Maximum [Member] | |
Transmission [Line Items] | |
Total Project Cost | $ 710 |
Completed Project - Prior Years [Member] | CapX2020 [Member] | |
Transmission [Line Items] | |
Number of Projects | 2 |
Commitments, Guarantees and C89
Commitments, Guarantees and Contingencies - Environmental Matters (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)MW | |
Boswell Unit 4 [Member] | |
Environmental Matters [Line Items] | |
Total Project Costs | $ 220 |
Minimum [Member] | Coal Combustion Residuals [Member] | |
Environmental Matters [Line Items] | |
Estimated Costs of Compliance | 80 |
Maximum [Member] | Clean Water Act - Aquatic Organisms [Member] | |
Environmental Matters [Line Items] | |
Estimated Costs of Compliance | 15 |
Maximum [Member] | Coal Combustion Residuals [Member] | |
Environmental Matters [Line Items] | |
Estimated Costs of Compliance | $ 100 |
NOV Consent Decree [Member] | |
Environmental Matters [Line Items] | |
Additional Wind Energy Generating Capacity (MW) | MW | 200 |
NOV Consent Decree [Member] | Minimum [Member] | |
Environmental Matters [Line Items] | |
Estimated Capital Expenditures | $ 20 |
NOV Consent Decree [Member] | Maximum [Member] | |
Environmental Matters [Line Items] | |
Estimated Capital Expenditures | $ 40 |
Commitments, Guarantees and C90
Commitments, Guarantees and Contingencies - Other Matters (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)Years | Dec. 31, 2014 | |
U.S. Water Services [Member] | Letters of Credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Collateral | $ 0.8 | |
BNI Energy Reclamation Liability [Member] | ||
Guarantor Obligations [Line Items] | ||
Estimated Obligation | 47.5 | |
BNI Energy Reclamation Liability [Member] | Letters of Credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Collateral | 0.6 | |
BNI Energy Reclamation Liability [Member] | Surety Bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Collateral | 49.9 | |
ALLETE Properties Development and Maintenance Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Estimated Obligation | 6.3 | |
ALLETE Properties Development and Maintenance Obligations [Member] | Surety Bonds and Letters of Credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Collateral | 10.3 | |
Town Center Community Development District Capital Improvement Bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Bonds | $ 26.4 | |
Bond Interest Rate | 6.00% | |
Bond Term (Years) | Years | 31 | |
Ownership Percentage of Benefited Property | 72.00% | 72.00% |
Annual Assessment | $ 1.4 | |
Palm Coast Park Community Development District Special Assessment Bonds[Member] | ||
Guarantor Obligations [Line Items] | ||
Bonds | $ 31.8 | |
Bond Interest Rate | 5.70% | |
Bond Term (Years) | Years | 31 | |
Ownership Percentage of Benefited Property | 89.00% | 93.00% |
Annual Assessment | $ 2.1 |
Common Stock and Earnings Per91
Common Stock and Earnings Per Share - Summary of Common Stock (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Common Stock [Line Items] | ||||
Balance, Shares | 49,100 | 45,900 | ||
Contributions to Pension, Equity | $ 0 | $ 19.5 | $ 0 | |
Common Stock [Member] | ||||
Summary of Common Stock [Line Items] | ||||
Balance, Shares | 49,075 | 45,929 | 41,401 | 39,377 |
Balance, Equity | $ 1,271.4 | $ 1,107.6 | $ 885.2 | $ 784.7 |
Employee Stock Purchase Program, Shares | 18 | 18 | 16 | |
Employee Stock Purchase Program, Equity | $ 0.9 | $ 0.8 | $ 0.7 | |
Invest Direct, Shares | 383 | 378 | 395 | |
Invest Direct, Equity | $ 19 | $ 18.9 | $ 18.5 | |
Options and Stock Awards, Shares | 43 | 78 | 301 | |
Options and Stock Awards, Equity | $ 8.6 | $ 8 | $ 17.9 | |
Equity Issuance Program, Shares | 1,289 | 1,851 | 1,312 | |
Equity Issuance Program, Equity | $ 69.9 | $ 90 | $ 63.4 | |
Forward Sale Agreement and Issuance, Shares | 1,413 | 1,807 | ||
Forward Sales Agreement and Issuance, Equity | $ 65.4 | $ 85.2 | ||
Contributions to Pension, Shares | 0 | 396 | 0 | |
Contributions to Pension, Equity | $ 19.5 | |||
Equity Issuance Program Shares Authorized | 13,600 | |||
Equity Issuance Program Shares Available for Issuance | 4,000 |
Common Stock and Earnings Per92
Common Stock and Earnings Per Share - Forward Sale Agreement and Issuance of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 04, 2015 | Sep. 05, 2014 | Mar. 04, 2014 | Feb. 26, 2014 |
Forward Sale Agreement [Member] | ||||
Forward Contract Indexed to Issuer's Equity [Line Items] | ||||
Indexed Shares | 2.8 | |||
Forward Rate Per Share | $ 48.01 | |||
Shares Issued | 1.4 | 1.4 | ||
Proceeds from Issuance of Common Stock | $ 65.4 | $ 65 | ||
Options to Purchase Additional Shares [Member] | ||||
Forward Contract Indexed to Issuer's Equity [Line Items] | ||||
Shares Issued | 0.4 | |||
Proceeds from Issuance of Common Stock | $ 20.2 |
Common Stock and Earnings Per93
Common Stock and Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share - Basic [Abstract] | |||||||||||
Net Income Attributable to ALLETE | $ 18.3 | $ 60.4 | $ 22.5 | $ 39.9 | $ 32.9 | $ 41.6 | $ 16.8 | $ 33.5 | $ 141.1 | $ 124.8 | $ 104.7 |
Average Common Shares | 48.3 | 42.9 | 39.7 | ||||||||
Earnings Per Share | $ 0.37 | $ 1.24 | $ 0.46 | $ 0.85 | $ 0.73 | $ 0.97 | $ 0.40 | $ 0.81 | $ 2.92 | $ 2.91 | $ 2.64 |
Earnings Per Share - Diluted [Abstract] | |||||||||||
Net Income Attributable to ALLETE | $ 141.1 | $ 124.8 | $ 104.7 | ||||||||
Average Common Shares | 48.4 | 43.1 | 39.8 | ||||||||
Earnings Per Share | $ 0.37 | $ 1.23 | $ 0.46 | $ 0.85 | $ 0.73 | $ 0.97 | $ 0.40 | $ 0.80 | $ 2.92 | $ 2.90 | $ 2.63 |
Dilutive Securities (Shares) | 0.1 | 0.2 | 0.1 | ||||||||
Common Stock [Member] | |||||||||||
Antidilutive Options to Purchase Shares of Common Stock Excluded from the Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Options to Purchase Shares of Common Stock Excluded from the Computation of Earnings Per Share | 0 | 0 | 0 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
AFUDC–Equity | $ 3.3 | $ 7.8 | $ 4.6 |
Gain on Sale of Available-for-sale Securities | 0.1 | 0.2 | 2.2 |
Investments and Other Income | 1.3 | 0.6 | 2.5 |
Total Other Income | $ 4.7 | $ 8.6 | $ 9.3 |
Income Tax Expense (Details)
Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Current Tax Expense [Abstract] | ||||
Federal | [1] | $ 0 | $ 1.1 | $ 0 |
State | [1] | 0.2 | 2.9 | 0.1 |
Total Current Tax Expense | 0.2 | 4 | 0.1 | |
Deferred Tax Expense [Abstract] | ||||
Federal | 19.4 | 25.3 | 22.9 | |
State | 6.5 | 8.2 | 6.5 | |
Investment Tax Credit Amortization | (0.8) | (0.8) | (0.8) | |
Total Deferred Tax Expense | 25.1 | 32.7 | 28.6 | |
Total Income Tax Expense | $ 25.3 | $ 36.7 | $ 28.7 | |
[1] | For the years ended December 31, 2015, 2014, and 2013, the federal and state current tax expense was minimal due to NOLs which resulted from the bonus depreciation provisions of the Protecting Americans from Tax Hikes Act of 2015, the Tax Increase Prevention Act of 2014 and the American Taxpayer Relief Act of 2012. The federal and state NOLs will be carried forward to offset future taxable income. The year ended December 31, 2014 includes the resolution of an Internal Revenue Service examination for tax years 2005 through 2009 and the impacts of initiatives implemented on the 2013 federal and state tax returns to utilize tax carryforwards that may have expired. |
Income Tax Expense - Reconcilia
Income Tax Expense - Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense [Abstract] | |||
Income Before Non-Controlling Interest and Income Taxes | $ 166.8 | $ 162.2 | $ 133.4 |
Statutory Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
Income Taxes Computed at 35 Percent Statutory Federal Rate | $ 58.4 | $ 56.8 | $ 46.7 |
Increase (Decrease) in Tax [Abstract] | |||
State Income Taxes – Net of Federal Income Tax Benefit | 4.4 | 7.2 | 4.3 |
Regulatory Differences for Utility Plant | (0.6) | (3.5) | (2.2) |
Production Tax Credits | (37) | (23.7) | (19.2) |
Other | 0.1 | (0.1) | (0.9) |
Income Tax Expense | $ 25.3 | $ 36.7 | $ 28.7 |
Effective Tax Rate on Income | 15.20% | 22.60% | 21.50% |
Income Tax Expense - Deferred T
Income Tax Expense - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets [Abstract] | |||
Employee Benefits and Compensation | $ 105.4 | $ 102.2 | |
Property Related | 126.6 | 102.7 | |
NOL Carryforwards | 186.4 | 156.5 | |
Tax Credit Carryforwards | 164.8 | 95.7 | |
Power Purchase Agreements | 73 | 51.8 | |
Other | 21.8 | 17 | |
Gross Deferred Tax Assets | 678 | 525.9 | |
Deferred Tax Asset Valuation Allowance | (31.6) | (22.1) | |
Total Deferred Tax Assets | 646.4 | 503.8 | |
Deferred Tax Liabilities [Abstract] | |||
Property Related | 1,053 | 848.8 | |
Regulatory Asset for Benefit Obligations | 89.4 | 89.9 | |
Unamortized Investment Tax Credits | 26 | 10.3 | |
Partnership Basis Differences | 47.8 | 41.9 | |
Other | 10 | 16.1 | |
Total Deferred Tax Liabilities | 1,226.2 | 1,007 | |
Net Deferred Income Taxes | 579.8 | 503.2 | |
Net Current Deferred Tax Assets | [1] | 0 | 7.5 |
Net Long-Term Deferred Tax Liabilities | $ 579.8 | $ 510.7 | |
[1] | For discussion of classification of deferred income taxes see Note 1. Operations and Significant Accounting Policies - New Accounting Standards - Balance Sheet Classification of Deferred Taxes. |
Income Tax Expense - NOL and Ta
Income Tax Expense - NOL and Tax Credit Carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal [Member] | |||
NOL and Tax Credit Carryforwards [Line Items] | |||
NOL Carryforwards | [1] | $ 493 | $ 413.7 |
Tax Credit Carryforwards | 113.6 | 59.3 | |
Tax Credit Carryforwards, Valuation Allowance | 0 | ||
NOL Carryforwards, Valuation Allowance | 0 | ||
State [Member] | |||
NOL and Tax Credit Carryforwards [Line Items] | |||
NOL Carryforwards | [1] | 228.6 | 184.7 |
Tax Credit Carryforwards | [2] | 20 | 14.7 |
Tax Credit Carryforwards, Valuation Allowance | $ 31.2 | $ 21.7 | |
[1] | Pretax amounts | ||
[2] | Net of a $31.2 million valuation allowance as of December 31, 2015 ($21.7 million as of December 31, 2014). |
Income Tax Expense - Gross Unre
Income Tax Expense - Gross Unrecognized Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gross Unrecognized Income Tax Benefits [Roll Forward] | |||
Balance at January 1 | $ 2 | $ 1.2 | $ 2.7 |
Additions for Tax Positions Related to the Current Year | 0.5 | 0 | 0.1 |
Additions for Tax Positions Related to Prior Years | 0.7 | 1 | 1.3 |
Reduction for Tax Positions Related to Prior Years | (0.7) | 0 | 0 |
Reductions for Settlements | 0 | 0 | (2.9) |
Lapse of Statute | (0.1) | (0.2) | 0 |
Balance as of December 31 | 2.4 | 2 | 1.2 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0.5 | ||
Unrecognized Tax Benefits, Accrued Interest | $ 0 | $ 0 | $ 0.5 |
Unrecognized Tax Benefits, Interest Expense | immaterial | immaterial | immaterial |
Unrecognized Tax Benefits, Penalties | $ 0 | $ 0 | $ 0 |
Material Changes to Unrecognized Tax Benefits Expected During Next 12 Months | $ 0 |
Reclassifications Out of Acc100
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning Balance Accumulated Other Comprehensive Loss | $ (21.1) | $ (17.1) | $ (22) | |
Other Comprehensive Income (Loss) Before Reclassifications | (4.6) | (5.3) | 4.6 | |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1.2 | 1.3 | 0.3 | |
Net Other Comprehensive Income (Loss) | (3.4) | (4) | 4.9 | |
Ending Balance Accumulated Other Comprehensive Loss | (24.5) | (21.1) | (17.1) | |
Unrealized Gain (Loss) on Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning Balance Accumulated Other Comprehensive Loss | (0.3) | (0.1) | (0.1) | |
Other Comprehensive Income (Loss) Before Reclassifications | (0.4) | (0.3) | 1.3 | |
Amounts Reclassified from Accumulated Other Comprehensive Loss | (0.1) | 0.1 | (1.3) | |
Net Other Comprehensive Income (Loss) | (0.5) | (0.2) | 0 | |
Ending Balance Accumulated Other Comprehensive Loss | (0.8) | (0.3) | (0.1) | |
Defined Benefit Pension, Other Postretirement Items [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning Balance Accumulated Other Comprehensive Loss | [1] | (20.7) | (16.7) | (21.5) |
Other Comprehensive Income (Loss) Before Reclassifications | [1] | (4.3) | (5.2) | 3.2 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | [1] | 1.3 | 1.2 | 1.6 |
Net Other Comprehensive Income (Loss) | [1] | (3) | (4) | 4.8 |
Ending Balance Accumulated Other Comprehensive Loss | [1] | (23.7) | (20.7) | (16.7) |
Gains (Loss) on Cash Flow Hedge [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning Balance Accumulated Other Comprehensive Loss | (0.1) | (0.3) | (0.4) | |
Other Comprehensive Income (Loss) Before Reclassifications | 0.1 | 0.2 | 0.1 | |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 0 | 0 | 0 | |
Net Other Comprehensive Income (Loss) | 0.1 | 0.2 | 0.1 | |
Ending Balance Accumulated Other Comprehensive Loss | $ 0 | $ (0.1) | $ (0.3) | |
[1] | Defined benefit pension and other postretirement items excluded from our Regulated Operations are recognized in accumulated other comprehensive loss and are subsequently reclassified out of accumulated other comprehensive loss as components of net periodic pension and other postretirement benefit expense. (See Note 17. Pension and Other Postretirement Benefit Plans.) |
Pension and Other Postretire101
Pension and Other Postretirement Benefit Plans - Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Employer Contributions | $ 0 | $ 0 | $ 10.8 |
Defined Benefit Plans, Employer Contributions | 0 | 19.5 | 0 |
Defined Contribution RSOP, Employer Contributions | 9 | 9.1 | 8.4 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Employer Contributions | 0 | 0 | 0 |
Defined Benefit Plans, Employer Contributions | 19.5 | ||
Defined Benefit Plans, Expected Employer Contributions in 2016 | 2 | ||
Postretirement Health and Life [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Expected Employer Contributions in 2016 | 0 | ||
VEBA [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Employer Contributions | 0 | 0 | 10.8 |
Irrevocable Grantor Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Employer Contributions | $ 0 | $ 0 | $ 2 |
Pension and Other Postretire102
Pension and Other Postretirement Benefit Plans - Obligation and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Change in Plan Assets [Roll Forward] | ||||
Non-Current Liabilities | $ (206.8) | $ (190.9) | ||
Other Investments | 74.6 | 114.4 | ||
Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated Benefit Obligation | 665 | 661.4 | ||
Change in Benefit Obligation [Roll Forward] | ||||
Obligation, Beginning of Year | 714.5 | 622.8 | ||
Service Cost | 10.1 | 8.3 | $ 9.9 | |
Interest Cost | 29.9 | 29.8 | 26 | |
Actuarial (Gain) Loss | (31.2) | 72.6 | ||
Benefits Paid | (40.2) | (36.9) | ||
Participant Contributions | 26.7 | 17.9 | ||
Obligation, End of Year | 709.8 | 714.5 | 622.8 | |
Change in Plan Assets [Roll Forward] | ||||
Fair Value, Beginning of Year | 544.2 | 501.6 | ||
Actual Return on Plan Assets | (10.8) | 41 | ||
Employer Contribution | [1] | 28.1 | 38.5 | |
Benefits Paid | (40.2) | (36.9) | ||
Fair Value, End of Year | 521.3 | 544.2 | 501.6 | |
Funded Status, End of Year | (188.5) | (170.3) | ||
Current Liabilities | (1.3) | (1.2) | ||
Non-Current Liabilities | (187.2) | (169.1) | ||
Postretirement Health and Life [Member] | ||||
Change in Benefit Obligation [Roll Forward] | ||||
Obligation, Beginning of Year | 170.9 | 151.9 | ||
Service Cost | 4.3 | 3.4 | 3.9 | |
Interest Cost | 7.2 | 7.3 | 6.8 | |
Actuarial (Gain) Loss | (14.4) | 18.1 | ||
Benefits Paid | (10.7) | (8.9) | ||
Participant Contributions | 2.9 | 2.6 | ||
Plan Amendments | 0 | (2.9) | ||
Plan Curtailments | 0 | (0.6) | ||
Obligation, End of Year | 160.2 | 170.9 | 151.9 | |
Change in Plan Assets [Roll Forward] | ||||
Fair Value, Beginning of Year | 163.2 | 157 | ||
Actual Return on Plan Assets | (3.5) | 11.6 | ||
Employer Contribution | 1.5 | 1.1 | ||
Participant Contributions | 2.9 | 2.6 | ||
Benefits Paid | (10.7) | (9.1) | ||
Fair Value, End of Year | 153.4 | 163.2 | $ 157 | |
Funded Status, End of Year | (6.8) | (7.7) | ||
Non-Current Assets | 6.4 | 6.6 | ||
Current Liabilities | (1) | (0.9) | ||
Non-Current Liabilities | (12.2) | (13.4) | ||
Irrevocable Grantor Trust [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Other Investments | $ 17.4 | $ 17.9 | ||
[1] | Includes Participant Contributions noted above. |
Pension and Other Postretire103
Pension and Other Postretirement Benefit Plans - Unrecognized Costs (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net Loss | $ 252.7 | $ 250.4 |
Prior Service Cost (Credit) | 0 | 0.2 |
Total Unrecognized Costs (Credit) | 252.7 | 250.6 |
Postretirement Health and Life [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net Loss | 6.5 | 6.9 |
Prior Service Cost (Credit) | (7.6) | (10.6) |
Total Unrecognized Costs (Credit) | $ (1.1) | $ (3.7) |
Pension and Other Postretire104
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Pension [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Service Cost | $ 10.1 | $ 8.3 | $ 9.9 | |
Interest Cost | 29.9 | 29.8 | 26 | |
Expected Return on Plan Assets | (40.7) | (38.2) | (35.2) | |
Amortization of Loss | 17.9 | 14.2 | 21.5 | |
Amortization of Prior Service Cost (Credit) | 0.2 | 0.3 | 0.3 | |
Net Expense (Credit) | 17.4 | 14.4 | 22.5 | |
Postretirement Health and Life [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Service Cost | 4.3 | 3.4 | 3.9 | |
Interest Cost | 7.2 | 7.3 | 6.8 | |
Expected Return on Plan Assets | (10.9) | (10.3) | (9.7) | |
Amortization of Loss | 0.4 | 0.5 | 1.6 | |
Amortization of Prior Service Cost (Credit) | (3) | (2.5) | (2.5) | |
Effect of Plan Settlement | 0 | 0 | (1.6) | [1] |
Net Expense (Credit) | $ (2) | $ (1.6) | $ (1.5) | |
[1] | Result of the termination of a legacy benefit plan. |
Pension and Other Postretire105
Pension and Other Postretirement Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net (Gain) Loss | $ 20.2 | $ 69.8 |
Amortization of Prior Service (Cost) Credit | (0.2) | (0.3) |
Amortization of Loss | (17.9) | (14.2) |
Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | 2.1 | 55.3 |
Postretirement Health and Life [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net (Gain) Loss | 0 | 16.4 |
Prior Service Credit Arising During the Period | 0 | (3) |
Amortization of Prior Service (Cost) Credit | 3 | 2.5 |
Amortization of Loss | (0.4) | (0.5) |
Total Recognized in Other Comprehensive Income and Regulatory Assets or Liabilities | $ 2.6 | $ 15.4 |
Pension and Other Postretire106
Pension and Other Postretirement Benefit Plans - Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Projected Benefit Obligation | $ 709.8 | $ 714.5 |
Accumulated Benefit Obligation | 665 | 661.4 |
Fair Value of Plan Assets | $ 521.3 | $ 544.2 |
Pension and Other Postretire107
Pension and Other Postretirement Benefit Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2,016 | $ 39.8 |
2,017 | 40.6 |
2,018 | 41.1 |
2,019 | 41.7 |
2,020 | 41.8 |
Years 2021 - 2025 | 216.2 |
Postretirement Health and Life [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2,016 | 8.3 |
2,017 | 8.6 |
2,018 | 8.8 |
2,019 | 9.1 |
2,020 | 9.3 |
Years 2021 - 2025 | $ 48 |
Pension and Other Postretire108
Pension and Other Postretirement Benefit Plans - Costs Recorded in Regulatory Long-Term Assets or Liabilities and AOCI Expected to be Recognized as a Component of Net Pension and Postretirement Benefit Costs in the Next Fiscal Year (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Net (Gain) Loss | $ (8.4) |
Prior Service Credit | 0 |
Total Pension and Postretirement Health and Life Credit | (8.4) |
Postretirement Health and Life [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Net (Gain) Loss | 0.2 |
Prior Service Credit | (2.9) |
Total Pension and Postretirement Health and Life Credit | $ (2.7) |
Pension and Other Postretire109
Pension and Other Postretirement Benefit Plans - Assumptions Used to Determine Benefit Obligation and Net Periodic Benefit Costs (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension [Member] | |||
Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Discount Rate | 4.72% | 4.30% | |
Assumptions Used to Determine Net Periodic Benefit Costs [Abstract] | |||
Discount Rate | 4.30% | 4.93% | 4.10% |
Expected Long-Term Return on Plan Assets | 8.00% | 8.00% | 8.25% |
Pension [Member] | Minimum [Member] | |||
Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Rate of Compensation Increase | 3.70% | 3.70% | |
Assumptions Used to Determine Net Periodic Benefit Costs [Abstract] | |||
Rate of Compensation Increase | 3.70% | 3.70% | 4.30% |
Pension [Member] | Maximum [Member] | |||
Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Rate of Compensation Increase | 4.30% | 4.30% | |
Assumptions Used to Determine Net Periodic Benefit Costs [Abstract] | |||
Rate of Compensation Increase | 4.30% | 4.30% | 4.60% |
Postretirement Health and Life [Member] | |||
Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Discount Rate | 4.73% | 4.33% | |
Health Care Trend Rates [Abstract] | |||
Trend Rate | 6.50% | 6.75% | |
Ultimate Trend Rate | 5.00% | 5.00% | |
Year Ultimate Trend Rate Effective | 2,022 | 2,022 | |
Assumptions Used to Determine Net Periodic Benefit Costs [Abstract] | |||
Discount Rate | 4.33% | 4.96% | 4.13% |
Postretirement Health and Life [Member] | Minimum [Member] | |||
Assumptions Used to Determine Net Periodic Benefit Costs [Abstract] | |||
Expected Long-Term Return on Plan Assets | 6.40% | 6.40% | 6.60% |
Postretirement Health and Life [Member] | Maximum [Member] | |||
Assumptions Used to Determine Net Periodic Benefit Costs [Abstract] | |||
Expected Long-Term Return on Plan Assets | 8.00% | 8.00% | 8.25% |
Pension and Other Postretire110
Pension and Other Postretirement Benefit Plans - Sensitivity of a One-Percentage-Point Change in Health Care Trend Rates (Details) - Postretirement Health and Life [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Effect of One Percent Increase on Total of Postretirement Health and Life Service and Interest Cost | $ 1.9 |
Effect of One Percent Increase on Postretirement Health and Life Obligation | 19.3 |
Effect of One Percent Decrease on Total of Postretirement Health and Life Service and Interest Cost | (1.5) |
Effect of One Percent Decrease on Postretirement Health and Life Obligation | $ (15.9) |
Pension and Other Postretire111
Pension and Other Postretirement Benefit Plans - Plan Asset Allocations (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Pension [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | 100.00% | 100.00% | |
Employer Stock Included in Equity Securities (Shares) | 0 | 0 | |
Plan Asset Target Allocation | 100.00% | ||
Pension [Member] | Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | 47.00% | 48.00% | |
Plan Asset Target Allocation | 56.00% | ||
Pension [Member] | Debt Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | 39.00% | 39.00% | |
Plan Asset Target Allocation | 35.00% | ||
Pension [Member] | Private Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | 8.00% | 8.00% | |
Pension [Member] | Real Estate [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | 6.00% | 5.00% | |
Plan Asset Target Allocation | 9.00% | ||
Postretirement Health and Life [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | [1] | 100.00% | 100.00% |
Plan Asset Target Allocation | [2] | 100.00% | |
Postretirement Health and Life [Member] | Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | [1] | 57.00% | 58.00% |
Plan Asset Target Allocation | [2] | 60.00% | |
Postretirement Health and Life [Member] | Debt Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | [1] | 35.00% | 34.00% |
Plan Asset Target Allocation | [2] | 37.00% | |
Postretirement Health and Life [Member] | Private Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | [1] | 8.00% | 8.00% |
Postretirement Health and Life [Member] | Real Estate [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Actual Plan Asset Allocation | [1] | 0.00% | 0.00% |
Plan Asset Target Allocation | [2] | 3.00% | |
[1] | Includes VEBAs and irrevocable grantor trusts. | ||
[2] | Includes VEBAs and irrevocable grantor trusts. |
Pension and Other Postretire112
Pension and Other Postretirement Benefit Plans - Recurring Fair Value Measures (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Pension [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | $ 521.3 | $ 544.2 | $ 501.6 | ||
Pension [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 144.1 | 120.4 | |||
Pension [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 305 | 351.6 | |||
Pension [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 72.2 | 72.2 | |||
Pension [Member] | U.S. Large-cap [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 76 | [1] | 88.5 | [2] | |
Pension [Member] | U.S. Large-cap [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 33.9 | [1] | 32.1 | [2] | |
Pension [Member] | U.S. Large-cap [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 42.1 | [1] | 56.4 | [2] | |
Pension [Member] | U.S. Large-cap [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [1] | 0 | [2] | |
Pension [Member] | U.S. Mid-cap Growth [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 31.9 | [1] | 37.5 | [2] | |
Pension [Member] | U.S. Mid-cap Growth [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 14.2 | [1] | 13.6 | [2] | |
Pension [Member] | U.S. Mid-cap Growth [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 17.7 | [1] | 23.9 | [2] | |
Pension [Member] | U.S. Mid-cap Growth [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [1] | 0 | [2] | |
Pension [Member] | U.S. Small-cap [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 32.4 | [1] | 38.3 | [2] | |
Pension [Member] | U.S. Small-cap [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 14.5 | [1] | 13.9 | [2] | |
Pension [Member] | U.S. Small-cap [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 17.9 | [1] | 24.4 | [2] | |
Pension [Member] | U.S. Small-cap [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [1] | 0 | [2] | |
Pension [Member] | Mutual Funds [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 8.4 | ||||
Pension [Member] | Mutual Funds [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 8.4 | ||||
Pension [Member] | Mutual Funds [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | ||||
Pension [Member] | Mutual Funds [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | ||||
Pension [Member] | International [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 86.7 | 92 | |||
Pension [Member] | International [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 44.7 | 46.1 | |||
Pension [Member] | International [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 42 | 45.9 | |||
Pension [Member] | International [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Debt Securities - Mutual Funds [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0.1 | 0.1 | |||
Pension [Member] | Debt Securities - Mutual Funds [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0.1 | 0.1 | |||
Pension [Member] | Debt Securities - Mutual Funds [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Debt Securities - Mutual Funds [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Debt Securities - Fixed Income [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 188 | 203.7 | |||
Pension [Member] | Debt Securities - Fixed Income [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 2.7 | 2.7 | |||
Pension [Member] | Debt Securities - Fixed Income [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 185.3 | 201 | |||
Pension [Member] | Debt Securities - Fixed Income [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Cash and Cash Equivalents [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 25.6 | 11.9 | |||
Pension [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 25.6 | 11.9 | |||
Pension [Member] | Cash and Cash Equivalents [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Cash and Cash Equivalents [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Private Equity Funds [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 43.3 | 43.3 | |||
Pension [Member] | Private Equity Funds [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Private Equity Funds [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Private Equity Funds [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 43.3 | 43.3 | |||
Pension [Member] | Real Estate [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 28.9 | 28.9 | |||
Pension [Member] | Real Estate [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Real Estate [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Pension [Member] | Real Estate [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 28.9 | 28.9 | |||
Postretirement Health and Life [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 153.4 | 163.2 | $ 157 | ||
Postretirement Health and Life [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 133 | 140.4 | |||
Postretirement Health and Life [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 8.4 | 9.9 | |||
Postretirement Health and Life [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 12 | 12.9 | |||
Postretirement Health and Life [Member] | U.S. Large-cap [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 28.2 | [3] | 29.3 | [4] | |
Postretirement Health and Life [Member] | U.S. Large-cap [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 28.2 | [3] | 29.3 | [4] | |
Postretirement Health and Life [Member] | U.S. Large-cap [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [3] | 0 | [4] | |
Postretirement Health and Life [Member] | U.S. Large-cap [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [3] | 0 | [4] | |
Postretirement Health and Life [Member] | U.S. Mid-cap Growth [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 19.1 | [3] | 20 | [4] | |
Postretirement Health and Life [Member] | U.S. Mid-cap Growth [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 19.1 | [3] | 20 | [4] | |
Postretirement Health and Life [Member] | U.S. Mid-cap Growth [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [3] | 0 | [4] | |
Postretirement Health and Life [Member] | U.S. Mid-cap Growth [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [3] | 0 | [4] | |
Postretirement Health and Life [Member] | U.S. Small-cap [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 12.1 | [3] | 12.6 | [4] | |
Postretirement Health and Life [Member] | U.S. Small-cap [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 12.1 | [3] | 12.6 | [4] | |
Postretirement Health and Life [Member] | U.S. Small-cap [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [3] | 0 | [4] | |
Postretirement Health and Life [Member] | U.S. Small-cap [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | [3] | 0 | [4] | |
Postretirement Health and Life [Member] | International [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 26.8 | 30.6 | |||
Postretirement Health and Life [Member] | International [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 26.8 | 30.6 | |||
Postretirement Health and Life [Member] | International [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | International [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Debt Securities - Mutual Funds [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 45.2 | 44.5 | |||
Postretirement Health and Life [Member] | Debt Securities - Mutual Funds [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 45.2 | 44.5 | |||
Postretirement Health and Life [Member] | Debt Securities - Mutual Funds [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Debt Securities - Mutual Funds [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Debt Securities - Fixed Income [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 8.4 | 9.9 | |||
Postretirement Health and Life [Member] | Debt Securities - Fixed Income [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Debt Securities - Fixed Income [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 8.4 | 9.9 | |||
Postretirement Health and Life [Member] | Debt Securities - Fixed Income [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Cash and Cash Equivalents [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 1.6 | 3.4 | |||
Postretirement Health and Life [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 1.6 | 3.4 | |||
Postretirement Health and Life [Member] | Cash and Cash Equivalents [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Cash and Cash Equivalents [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Private Equity Funds [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 12 | 12.9 | |||
Postretirement Health and Life [Member] | Private Equity Funds [Member] | Level 1 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Private Equity Funds [Member] | Level 2 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | 0 | 0 | |||
Postretirement Health and Life [Member] | Private Equity Funds [Member] | Level 3 [Member] | |||||
Recurring Fair Value Measures [Line Items] | |||||
Fair Value of Assets | $ 12 | $ 12.9 | |||
[1] | The underlying investments classified under U.S. Equity Securities consist of money market funds (Level 1) and actively-managed funds (Level 2), which are combined with futures, and settle daily, to achieve the returns of the U.S. Equity Securities Large-cap, Mid-cap Growth, and Small-cap funds. Our exposure with respect to these investments includes both the futures and the underlying investments. | ||||
[2] | The underlying investments classified under U.S. Equity Securities consist of money market funds (Level 1) and actively-managed funds (Level 2), which are combined with futures, and settle daily, to achieve the returns of the U.S. Equity Securities Large-cap, Mid-cap Growth, and Small-cap funds. Our exposure with respect to these investments includes both the futures and the underlying investments. | ||||
[3] | The underlying investments classified under U.S. Equity Securities consist of mutual funds (Level 1). | ||||
[4] | The underlying investments classified under U.S. Equity Securities consist of mutual funds (Level 1). |
Pension and Other Postretire113
Pension and Other Postretirement Benefit Plans - Recurring Fair Value Measures, Activity in Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension [Member] | Private Equity Funds [Member] | ||
Activity in Level 3 [Roll Forward] | ||
Beginning Balance | $ 43.3 | $ 46.8 |
Actual Return on Plan Assets | 2.6 | 1.2 |
Purchases, Sales, and Settlements – Net | (2.6) | (4.7) |
Ending Balance | 43.3 | 43.3 |
Pension [Member] | Real Estate [Member] | ||
Activity in Level 3 [Roll Forward] | ||
Beginning Balance | 28.9 | 26.5 |
Actual Return on Plan Assets | 2.9 | 2.8 |
Purchases, Sales, and Settlements – Net | (2.9) | (0.4) |
Ending Balance | 28.9 | 28.9 |
Postretirement Health and Life [Member] | Private Equity Funds [Member] | ||
Activity in Level 3 [Roll Forward] | ||
Beginning Balance | 12.9 | 13.1 |
Actual Return on Plan Assets | 1.2 | 1.4 |
Purchases, Sales, and Settlements – Net | (2.1) | (1.6) |
Ending Balance | $ 12 | $ 12.9 |
Employee Stock and Incentive114
Employee Stock and Incentive Plans - Employee Stock Ownership Plan (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
ESOP Employer Loan | In 1990, the ESOP issued a $75.0 million note (term not to exceed 25 years at 10.25 percent) to use as consideration for 2.8 million shares (1.9 million shares adjusted for stock splits) of our newly issued common stock. The note was refinanced in 2006 at 6 percent and subsequently matured in December 2015. | ||
ESOP Compensation Expense | $ 9 | $ 9.1 | $ 8.4 |
ESOP Shares, Allocated | 1.8 | 1.9 | 2 |
ESOP Shares, Unallocated | 0 | 0.3 | 0.5 |
ESOP Shares, Total | 1.8 | 2.2 | 2.5 |
ESOP Shares, Fair Value of Unallocated Shares | $ 0 | $ 13.2 | $ 24.1 |
Employee Stock and Incentive115
Employee Stock and Incentive Plans - Stock-Based Compensation (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2015shares | |
Non-Qualified Stock Options [Member] | |
Stock-based Compensation [Line Items] | |
Requisite Service Period (Years) | 1 year |
Vesting Period (Years) | 3 years |
Exercise Period (Years/Months) | 10 years |
Non-Qualified Stock Options [Member] | Qualified Retirement, Death or Disability [Member] | |
Stock-based Compensation [Line Items] | |
Exercise Period (Years/Months) | 3 years |
Non-Qualified Stock Options [Member] | Voluntary Termination or Involuntary Termination Without Cause [Member] | |
Stock-based Compensation [Line Items] | |
Exercise Period (Years/Months) | 3 months |
Performance Shares [Member] | |
Stock-based Compensation [Line Items] | |
Vesting Period (Years) | 3 years |
Restricted Stock Units [Member] | |
Stock-based Compensation [Line Items] | |
Vesting Period (Years) | 3 years |
Employee Stock Purchase Plan (ESPP) [Member] | |
Stock-based Compensation [Line Items] | |
ESPP Discount | 5.00% |
Executive Long-Term Incentive Compensation Plan [Member] | |
Stock-based Compensation [Line Items] | |
Common Stock Reserved | 1.1 |
Shares Available for Issuance | 0.9 |
Employee Stock and Incentive116
Employee Stock and Incentive Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation Expense [Line Items] | |||
Share-Based Compensation Expense | $ 2.6 | $ 2.3 | $ 2.4 |
Income Tax Benefit | 1.1 | 1 | 1 |
Capitalized Share-Based Compensation Costs | 0 | 0 | 0 |
Performance Shares [Member] | |||
Share-Based Compensation Expense [Line Items] | |||
Share-Based Compensation Expense | 1.8 | 1.6 | 1.7 |
Unrecognized Compensation Cost | $ 1.9 | ||
Weighted-Average Period for Recognition (Years/Months) | 1 year 8 months | ||
Restricted Stock Units [Member] | |||
Share-Based Compensation Expense [Line Items] | |||
Share-Based Compensation Expense | $ 0.8 | $ 0.7 | $ 0.7 |
Unrecognized Compensation Cost | $ 1.1 | ||
Weighted-Average Period for Recognition (Years/Months) | 1 year 11 months |
Employee Stock and Incentive117
Employee Stock and Incentive Plans - Non-Qualified Stock Options (Details) - Non-Qualified Stock Options [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | ||
Number of Options [Roll Forward] | |||||
Outstanding as of January 1 | 66,279 | 108,299 | 395,678 | ||
Granted | [1] | 0 | 0 | 0 | |
Exercised | (24,456) | (42,020) | (287,379) | ||
Forfeited | (2,169) | 0 | 0 | ||
Outstanding as of December 31 | 39,654 | 66,279 | 108,299 | ||
Exercisable as of December 31 | 39,654 | 66,279 | 108,299 | ||
Weighted-Average Exercise Price [Abstract] | |||||
Outstanding as of January 1 | $ 44.39 | $ 44.10 | $ 42.28 | ||
Granted | [1] | 0 | 0 | 0 | |
Exercised | 44.52 | 43.65 | 41.60 | ||
Forfeited | 42.93 | 0 | 0 | ||
Outstanding as of December 31 | 44.39 | 44.39 | 44.10 | ||
Exercisable as of December 31 | $ 44.39 | $ 44.39 | $ 43.17 | ||
Weighted Average Grant-Date Intrinsic Value | $ 6.18 | ||||
Cash Received from Non-Qualified Stock Options Exercised | $ 1.1 | ||||
Total Intrinsic Value of Options Exercised | $ 0.2 | $ 0.4 | $ 2.2 | ||
[1] | Stock options have not been granted since 2008. The weighted-average grant-date intrinsic value of options granted in 2008 was $6.18. |
Employee Stock and Incentive118
Employee Stock and Incentive Plans - Non-Qualified Stock Options, Range of Exercise Price (Details) - Non-Qualified Stock Options [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
$39.10 [Member] | |
Range of Exercise Price [Line Items] | |
Lower Range Limit | $ 39.10 |
Upper Range Limit | $ 39.10 |
Options Outstanding and Exercisable [Abstract] | |
Number Outstanding | shares | 16,620 |
Outstanding - Weighted Average Remaining Contractual Life (Years/Months) | 2 years 1 month |
Outstanding - Weighted Average Exercise Price | $ 39.10 |
Outstanding - Aggregate Intrinsic Value (Millions) | $ | $ 0.2 |
Number Exercisable | shares | 16,620 |
Exercisable - Weighted Average Remaining Contractual Life (Years/Months) | 2 years 1 month |
Exercisable - Weighted Average Exercise Price | $ 39.10 |
Exercisable - Aggregate Intrinsic Value (Millions) | $ | $ 0.2 |
$44.15 [Member] | |
Range of Exercise Price [Line Items] | |
Lower Range Limit | $ 44.15 |
Upper Range Limit | $ 44.15 |
Options Outstanding and Exercisable [Abstract] | |
Number Outstanding | shares | 2,306 |
Outstanding - Weighted Average Remaining Contractual Life (Years/Months) | 1 month |
Outstanding - Weighted Average Exercise Price | $ 44.15 |
Outstanding - Aggregate Intrinsic Value (Millions) | $ | $ 0 |
Number Exercisable | shares | 2,306 |
Exercisable - Weighted Average Remaining Contractual Life (Years/Months) | 1 month |
Exercisable - Weighted Average Exercise Price | $ 44.15 |
Exercisable - Aggregate Intrinsic Value (Millions) | $ | $ 0 |
$48.65 [Member] | |
Range of Exercise Price [Line Items] | |
Lower Range Limit | $ 48.65 |
Upper Range Limit | $ 48.65 |
Options Outstanding and Exercisable [Abstract] | |
Number Outstanding | shares | 20,728 |
Outstanding - Weighted Average Remaining Contractual Life (Years/Months) | 1 year 1 month |
Outstanding - Weighted Average Exercise Price | $ 48.65 |
Outstanding - Aggregate Intrinsic Value (Millions) | $ | $ 0.1 |
Number Exercisable | shares | 20,728 |
Exercisable - Weighted Average Remaining Contractual Life (Years/Months) | 1 year 1 month |
Exercisable - Weighted Average Exercise Price | $ 48.65 |
Exercisable - Aggregate Intrinsic Value (Millions) | $ | $ 0.1 |
Employee Stock and Incentive119
Employee Stock and Incentive Plans - Performance Shares and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Feb. 22, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Performance Shares [Member] | ||||||
Number of Shares [Rollforward] | ||||||
As of January 1 | 119,540 | 119,635 | 114,765 | 107,899 | ||
Granted | [1] | 43,583 | 47,992 | 45,830 | ||
Awarded | 0 | (36,515) | (18,605) | |||
Unearned Grant Award | (36,670) | 0 | (18,606) | |||
Forfeited | (7,008) | (6,607) | (1,753) | |||
As of December 31 | 119,540 | 119,635 | 114,765 | |||
Performance Period (Years) | 3 years | |||||
Weighted-Average Grant Date Fair Value [Abstract] | ||||||
As of January 1 | $ 52.72 | $ 48.26 | $ 47.02 | $ 40.73 | ||
Granted | [1] | 58.95 | 46.47 | 52.15 | ||
Awarded | 0 | 42.01 | 35.10 | |||
Unearned Grant Award | 45.41 | 0 | 35.10 | |||
Forfeited | 53.49 | 48.29 | 47.26 | |||
As of December 31 | $ 52.72 | $ 48.26 | $ 47.02 | |||
Restricted Stock Units [Member] | ||||||
Number of Shares [Rollforward] | ||||||
As of January 1 | 57,694 | 53,888 | 55,982 | 56,415 | ||
Granted | [2] | 26,702 | 19,645 | 21,440 | ||
Awarded | (19,464) | (18,860) | (20,939) | |||
Forfeited | (3,432) | (2,879) | (934) | |||
As of December 31 | 57,694 | 53,888 | 55,982 | |||
Performance Period (Years) | 3 years | |||||
Weighted-Average Grant Date Fair Value [Abstract] | ||||||
As of January 1 | $ 49.86 | $ 44.47 | $ 40.85 | $ 36.61 | ||
Granted | [2] | 54.81 | 48.44 | 43.41 | ||
Awarded | 41.44 | 37.64 | 32.03 | |||
Forfeited | 51.52 | 45.92 | 41.02 | |||
As of December 31 | $ 49.86 | $ 44.47 | $ 40.85 | |||
Subsequent Event [Member] | Performance Shares [Member] | ||||||
Number of Shares [Rollforward] | ||||||
Granted | 51,586 | |||||
Awarded | 0 | |||||
Performance Period (Years) | 3 years | 3 years | ||||
Granted, Grant Date Fair Value | $ 2.7 | |||||
Subsequent Event [Member] | Restricted Stock Units [Member] | ||||||
Number of Shares [Rollforward] | ||||||
Granted | 17,396 | |||||
Awarded | (17,608) | |||||
Granted, Grant Date Fair Value | $ 0.9 | |||||
Awarded, Grant Date Fair Value | $ 0.8 | |||||
[1] | Shares granted include accrued dividends. | |||||
[2] | Shares granted include accrued dividends. |
Quarterly Financial Data (Un120
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating Revenue | $ 380.6 | $ 462.5 | $ 323.3 | $ 320 | $ 290.7 | $ 288.9 | $ 260.7 | $ 296.5 | $ 1,486.4 | $ 1,136.8 | $ 1,018.4 |
Operating Income | 29.6 | 85.2 | 39.5 | 56.4 | 51.5 | 60.8 | 28.2 | 48.3 | 210.7 | 188.8 | 154.1 |
Net Income Attributable to ALLETE | $ 18.3 | $ 60.4 | $ 22.5 | $ 39.9 | $ 32.9 | $ 41.6 | $ 16.8 | $ 33.5 | $ 141.1 | $ 124.8 | $ 104.7 |
Basic Earnings Per Share of Common Stock | $ 0.37 | $ 1.24 | $ 0.46 | $ 0.85 | $ 0.73 | $ 0.97 | $ 0.40 | $ 0.81 | $ 2.92 | $ 2.91 | $ 2.64 |
Diluted Earnings Per Share of Common Stock | $ 0.37 | $ 1.23 | $ 0.46 | $ 0.85 | $ 0.73 | $ 0.97 | $ 0.40 | $ 0.80 | $ 2.92 | $ 2.90 | $ 2.63 |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Trade Accounts Receivable [Member] | ||||
Valuation and Qualifying Accounts and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 1.1 | $ 1.1 | $ 1 | |
Additions, Charged to Income | 1.6 | 1.8 | 1.3 | |
Additions, Other Charges | 0 | 0 | 0 | |
Deductions from Reserves | [1] | 1.7 | 1.8 | 1.2 |
Balance at End of Period | 1 | 1.1 | 1.1 | |
Finance Receivables – Long-Term [Member] | ||||
Valuation and Qualifying Accounts and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 0.6 | 0.6 | 0.6 | |
Additions, Charged to Income | 0 | 0 | 0 | |
Additions, Other Charges | 0 | 0 | 0 | |
Deductions from Reserves | [1] | 0 | 0 | 0 |
Balance at End of Period | 0.6 | 0.6 | 0.6 | |
Deferred Tax Assets [Member] | ||||
Valuation and Qualifying Accounts and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 22.1 | 8 | 2.4 | |
Additions, Charged to Income | 9.5 | 14.1 | 5.6 | |
Additions, Other Charges | 0 | 0 | 0 | |
Deductions from Reserves | [1] | 0 | 0 | 0 |
Balance at End of Period | $ 31.6 | $ 22.1 | $ 8 | |
[1] | Includes uncollectible accounts written off. |