Business Segments

6 Months Ended

Jun. 30, 2015

Business Segments [Abstract]

Business Segments [Text Block]

BUSINESS SEGMENTS

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. Investments and Other is comprised primarily of our Energy Infrastructure and Related Services businesses: ALLETE Clean Energy, our business aimed at 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, our integrated water management company which was acquired on February 10, 2015, and BNI Coal, our coal mining operations in North Dakota. Investments and Other also includes ALLETE Properties, our Florida real estate investment, and 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. Future acquisitions or growth may impact segment reporting.

	Consolidated			Regulated Operations			Investments and Other
Millions
Quarter Ended June 30, 2015
Operating Revenue		$323.3			$230.0			$93.3
Fuel and Purchased Power	80.1			80.1			—
Transmission Services	11.3			11.3			—
Cost of Sales	52.3			1.0			51.3
Operating and Maintenance	85.4			57.8			27.6
Depreciation and Amortization	41.3			33.7			7.6
Taxes Other than Income Taxes	13.4			12.1			1.3
Operating Income	39.5			34.0			5.5
Interest Expense	(16.2		)	(13.3		)	(2.9		)
Equity Earnings in ATC	4.7			4.7			—
Other Income	0.7			0.7			—
Income Before Non-Controlling Interest and Income Taxes	28.7			26.1			2.6
Income Tax Expense	6.4			2.5			3.9
Net Income (Loss)	22.3			23.6			(1.3		)
Less: Non-Controlling Interest in Subsidiaries	(0.2		)	—			(0.2		)
Net Income (Loss) Attributable to ALLETE	$22.5				$23.6		$(1.1)

NOTE 2.  BUSINESS SEGMENTS (Continued)

	Consolidated			Regulated Operations			Investments and Other
Millions
Quarter Ended June 30, 2014
Operating Revenue		$260.7			$229.6			$31.1
Fuel and Purchased Power	83.6			83.6			—
Transmission Services	10.5			10.5			—
Cost of Sales	18.9			4.3			14.6
Operating and Maintenance	74.3			63.6			10.7
Depreciation and Amortization	33.9			29.6			4.3
Taxes Other than Income Taxes	11.3			10.6			0.7
Operating Income	28.2			27.4			0.8
Interest Expense	(13.5		)	(11.4		)	(2.1		)
Equity Earnings in ATC	5.2			5.2			—
Other Income (Expense)	1.9			2.0			(0.1		)
Income (Loss) Before Non-Controlling Interest and Income Taxes	21.8			23.2			(1.4		)
Income Tax Expense (Benefit)	4.9			5.7			(0.8		)
Net Income (Loss)	16.9			17.5			(0.6		)
Less: Non-Controlling Interest in Subsidiaries	0.1			—			0.1
Net Income (Loss) Attributable to ALLETE		$16.8			$17.5		$(0.7)

	Consolidated			Regulated Operations			Investments and Other
Millions
Six Months Ended June 30, 2015
Operating Revenue		$643.3			$492.8			$150.5
Fuel and Purchased Power	166.1			166.1			—
Transmission Services	26.2			26.2			—
Cost of Sales	83.5			5.5			78.0
Operating and Maintenance	165.1			116.5			48.6
Depreciation and Amortization	80.3			65.8			14.5
Taxes Other than Income Taxes	26.2			23.7			2.5
Operating Income	95.9			89.0			6.9
Interest Expense	(31.3		)	(26.3		)	(5.0		)
Equity Earnings in ATC	8.6			8.6			—
Other Income	1.8			1.6			0.2
Income Before Non-Controlling Interest and Income Taxes	75.0			72.9			2.1
Income Tax Expense	12.6			7.9			4.7
Net Income (Loss)	62.4			65.0			(2.6		)
Less: Non-Controlling Interest in Subsidiaries	—			—			—
Net Income (Loss) Attributable to ALLETE		$62.4			$65.0		$(2.6)
As of June 30, 2015
Total Assets		$4,673.0			$3,783.2			$889.8
Property, Plant and Equipment – Net		$3,451.5			$3,056.9			$394.6
Accumulated Depreciation		$1,380.1			$1,294.0			$86.1
Capital Additions		$117.9			$111.7			$6.2

NOTE 2.  BUSINESS SEGMENTS (Continued)

	Consolidated			Regulated Operations			Investments and Other
Millions
Six Months Ended June 30, 2014
Operating Revenue		$557.2			$493.8			$63.4
Fuel and Purchased Power	179.8			179.8			—
Transmission Services	21.3			21.3			—
Cost of Sales	42.4			13.0			29.4
Operating and Maintenance	148.6			124.1			24.5
Depreciation and Amortization	66.1			58.4			7.7
Taxes Other than Income Taxes	22.5			20.8			1.7
Operating Income	76.5			76.4			0.1
Interest Expense	(26.3		)	(22.9		)	(3.4		)
Equity Earnings in ATC	10.3			10.3			—
Other Income	3.9			3.8			0.1
Income (Loss) Before Non-Controlling Interest and Income Taxes	64.4			67.6			(3.2		)
Income Tax Expense (Benefit)	13.7			16.2			(2.5		)
Net Income (Loss)	50.7			51.4			(0.7		)
Less: Non-Controlling Interest in Subsidiaries	0.4			—			0.4
Net Income (Loss) Attributable to ALLETE		$50.3			$51.4		$(1.1)
As of June 30, 2014
Total Assets		$3,895.6			$3,424.3			$471.3
Property, Plant and Equipment – Net		$3,020.4			$2,791.7			$228.7
Accumulated Depreciation		$1,288.9			$1,221.1			$67.8
Capital Additions		$341.7			$335.6			$6.1