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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Allete Inc | NYSE:ALE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 64.53 | 0 | 12:58:30 |
x
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the transition period from ______________ to ______________
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Minnesota
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41-0418150
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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Title of each class
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Trading symbol
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Name of each exchange on which registered
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Common Stock, without par value
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ALE
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New York Stock Exchange
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Abbreviation or Acronym
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Term
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AFUDC
|
Allowance for Funds Used During Construction – the cost of both debt and equity funds used to finance regulated utility plant additions during construction periods
|
ALLETE
|
ALLETE, Inc.
|
ALLETE Clean Energy
|
ALLETE Clean Energy, Inc. and its subsidiaries
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ALLETE Properties
|
ALLETE Properties, LLC and its subsidiaries
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ALLETE Transmission Holdings
|
ALLETE Transmission Holdings, Inc.
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ATC
|
American Transmission Company LLC
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Bison
|
Bison Wind Energy Center
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Blanchard
|
Blanchard Solar Energy Facility
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BNI Energy
|
BNI Energy, Inc. and its subsidiary
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Boswell
|
Boswell Energy Center
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Camp Ripley
|
Camp Ripley Solar Array
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CO
2
|
Carbon Dioxide
|
Company
|
ALLETE, Inc. and its subsidiaries
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Cliffs
|
Cleveland-Cliffs Inc.
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CSAPR
|
Cross-State Air Pollution Rule
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DC
|
Direct Current
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EIS
|
Environmental Impact Statement
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EITE
|
Energy-Intensive Trade-Exposed
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EPA
|
United States Environmental Protection Agency
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ERP Iron Ore
|
ERP Iron Ore, LLC
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ESOP
|
Employee Stock Ownership Plan
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FASB
|
Financial Accounting Standards Board
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FERC
|
Federal Energy Regulatory Commission
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Form 10-K
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ALLETE Annual Report on Form 10-K
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Form 10-Q
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ALLETE Quarterly Report on Form 10-Q
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GAAP
|
Generally Accepted Accounting Principles in the United States of America
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GHG
|
Greenhouse Gases
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GNTL
|
Great Northern Transmission Line
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Hibbard
|
Hibbard Renewable Energy Center
|
Husky Energy
|
Husky Energy Inc.
|
Invest Direct
|
ALLETE’s Direct Stock Purchase and Dividend Reinvestment Plan
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IRP
|
Integrated Resource Plan
|
Item ___
|
Item ___ of this Form 10-Q
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kV
|
Kilovolt(s)
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kW / kWh
|
Kilowatt(s) / Kilowatt-hour(s)
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Laskin
|
Laskin Energy Center
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Manitoba Hydro
|
Manitoba Hydro-Electric Board
|
Minnesota Power
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An operating division of ALLETE, Inc.
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Minnkota Power
|
Minnkota Power Cooperative, Inc.
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MISO
|
Midcontinent Independent System Operator, Inc.
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MMTP
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Manitoba-Minnesota Transmission Project
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Abbreviation or Acronym
|
Term
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Montana-Dakota Utilities
|
Montana-Dakota Utilities Co., a division of MDU Resources Group, Inc.
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Moody’s
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Moody’s Investors Service, Inc.
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MPCA
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Minnesota Pollution Control Agency
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MPUC
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Minnesota Public Utilities Commission
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MW / MWh
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Megawatt(s) / Megawatt-hour(s)
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NAAQS
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National Ambient Air Quality Standards
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NDPSC
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North Dakota Public Service Commission
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Nobles 2
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Nobles 2 Power Partners, LLC
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NOL
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Net Operating Loss
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NOX
|
Nitrogen Oxides
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Northern States Power
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Northern States Power Company, a subsidiary of Xcel Energy Inc.
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Northshore Mining
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Northshore Mining Company, a wholly-owned subsidiary of Cleveland-Cliffs Inc.
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Note ___
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Note ___ to the Consolidated Financial Statements in this Form 10-Q
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NPDES
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National Pollutant Discharge Elimination System
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NTEC
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Nemadji Trail Energy Center
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Oliver Wind I
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Oliver Wind I Energy Center
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Oliver Wind II
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Oliver Wind II Energy Center
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Palm Coast Park District
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Palm Coast Park Community Development District in Florida
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PolyMet
|
PolyMet Mining Corp.
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PPA / PSA
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Power Purchase Agreement / Power Sales Agreement
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PPACA
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Patient Protection and Affordable Care Act of 2010
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PSCW
|
Public Service Commission of Wisconsin
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SEC
|
Securities and Exchange Commission
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Silver Bay Power
|
Silver Bay Power Company, a wholly-owned subsidiary of Cleveland-Cliffs Inc.
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SO
2
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Sulfur Dioxide
|
Square Butte
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Square Butte Electric Cooperative, a North Dakota cooperative corporation
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SWL&P
|
Superior Water, Light and Power Company
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Taconite Harbor
|
Taconite Harbor Energy Center
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TCJA
|
Tax Cuts and Job Act of 2017 (Public Law 115-97)
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Town Center District
|
Town Center at Palm Coast Community Development District in Florida
|
U.S.
|
United States of America
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U.S. Water Services
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U.S. Water Services Holding Company and its subsidiaries
|
WTG
|
Wind Turbine Generator
|
•
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our ability to successfully implement our strategic objectives;
|
•
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global and domestic economic conditions affecting us or our customers;
|
•
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changes in and compliance with laws and regulations;
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•
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changes in tax rates or policies or in rates of inflation;
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•
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the outcome of legal and administrative proceedings (whether civil or criminal) and settlements;
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•
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weather conditions, natural disasters and pandemic diseases;
|
•
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our ability to access capital markets and bank financing;
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•
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changes in interest rates and the performance of the financial markets;
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•
|
project delays or changes in project costs;
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•
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changes in operating expenses and capital expenditures and our ability to raise revenues from our customers in regulated rates or contract price increases at our Energy Infrastructure and Related Services and other businesses;
|
•
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the impacts of commodity prices on ALLETE and our customers;
|
•
|
our ability to attract and retain qualified, skilled and experienced personnel;
|
•
|
effects of emerging technology;
|
•
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war, acts of terrorism and cybersecurity attacks;
|
•
|
our ability to manage expansion and integrate acquisitions;
|
•
|
population growth rates and demographic patterns;
|
•
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wholesale power market conditions;
|
•
|
federal and state regulatory and legislative actions that impact regulated utility economics, including our allowed rates of return, capital structure, ability to secure financing, industry and rate structure, acquisition and disposal of assets and facilities, operation and construction of plant facilities and utility infrastructure, recovery of purchased power, capital investments and other expenses, including present or prospective environmental matters;
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•
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effects of competition, including competition for retail and wholesale customers;
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•
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effects of restructuring initiatives in the electric industry;
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•
|
the impacts on our Regulated Operations segment of climate change and future regulation to restrict the emissions of GHG;
|
•
|
effects of increased deployment of distributed low-carbon electricity generation resources;
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•
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the impacts of laws and regulations related to renewable and distributed generation;
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•
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pricing, availability and transportation of fuel and other commodities and the ability to recover the costs of such commodities;
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•
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our current and potential industrial and municipal customers’ ability to execute announced expansion plans;
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•
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real estate market conditions where our legacy Florida real estate investment is located may not improve;
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•
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the success of efforts to realize value from, invest in, and develop new opportunities in, our Energy Infrastructure and Related Services businesses; and
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•
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factors affecting our Energy Infrastructure and Related Services businesses, including unanticipated cost increases, changes in legislation and regulations impacting the industries in which the customers served operate, the effects of weather, creditworthiness of customers, ability to obtain materials required to perform services, and changing market conditions.
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|
March 31,
2019 |
|
|
December 31,
2018 |
|
||
Millions
|
|
|
|
||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$353.3
|
|
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$69.1
|
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Accounts Receivable (Less Allowance of $1.0 and $1.7)
|
98.9
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144.4
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Inventories – Net
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73.8
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86.7
|
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Prepayments and Other
|
30.4
|
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34.1
|
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||
Total Current Assets
|
556.4
|
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334.3
|
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Property, Plant and Equipment – Net
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3,940.5
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3,904.4
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Regulatory Assets
|
385.1
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389.5
|
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Equity Investments
|
154.8
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161.1
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Goodwill and Intangible Assets – Net
|
1.1
|
|
|
223.3
|
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||
Other Non-Current Assets
|
180.9
|
|
|
152.4
|
|
||
Total Assets
|
|
$5,218.8
|
|
|
|
$5,165.0
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts Payable
|
|
$134.4
|
|
|
|
$149.8
|
|
Accrued Taxes
|
60.3
|
|
|
51.4
|
|
||
Accrued Interest
|
14.9
|
|
|
17.9
|
|
||
Long-Term Debt Due Within One Year
|
14.3
|
|
|
57.5
|
|
||
Other
|
98.5
|
|
|
128.5
|
|
||
Total Current Liabilities
|
322.4
|
|
|
405.1
|
|
||
Long-Term Debt
|
1,525.0
|
|
|
1,428.5
|
|
||
Deferred Income Taxes
|
215.5
|
|
|
223.6
|
|
||
Regulatory Liabilities
|
504.1
|
|
|
512.1
|
|
||
Defined Benefit Pension and Other Postretirement Benefit Plans
|
165.2
|
|
|
177.3
|
|
||
Other Non-Current Liabilities
|
287.9
|
|
|
262.6
|
|
||
Total Liabilities
|
3,020.1
|
|
|
3,009.2
|
|
||
Commitments, Guarantees and Contingencies (Note 7)
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
||||
Common Stock Without Par Value, 80.0 Shares Authorized, 51.6 and 51.5 Shares Issued and Outstanding
|
1,431.1
|
|
|
1,428.5
|
|
||
Accumulated Other Comprehensive Loss
|
(27.2
|
)
|
|
(27.3
|
)
|
||
Retained Earnings
|
794.8
|
|
|
754.6
|
|
||
Total Shareholders’ Equity
|
2,198.7
|
|
|
2,155.8
|
|
||
Total Liabilities and Shareholders’ Equity
|
|
$5,218.8
|
|
|
|
$5,165.0
|
|
|
Three Months Ended
|
|||||
|
March 31,
|
|||||
|
2019
|
2018
|
||||
Millions Except Per Share Amounts
|
|
|
||||
Operating Revenue
|
|
|
||||
Contracts with Customers – Utility
|
|
$282.2
|
|
|
$270.2
|
|
Contracts with Customers – Non-utility
|
72.1
|
|
82.0
|
|
||
Other – Non-utility
|
2.9
|
|
6.0
|
|
||
Total Operating Revenue
|
357.2
|
|
358.2
|
|
||
Operating Expenses
|
|
|
||||
Fuel, Purchased Power and Gas – Utility
|
109.8
|
|
100.9
|
|
||
Transmission Services – Utility
|
18.3
|
|
18.4
|
|
||
Cost of Sales – Non-utility
|
30.6
|
|
32.9
|
|
||
Operating and Maintenance
|
76.2
|
|
86.5
|
|
||
Depreciation and Amortization
|
51.9
|
|
45.8
|
|
||
Taxes Other than Income Taxes
|
13.6
|
|
16.3
|
|
||
Total Operating Expenses
|
300.4
|
|
300.8
|
|
||
Operating Income
|
56.8
|
|
57.4
|
|
||
Other Income (Expense)
|
|
|
||||
Interest Expense
|
(16.5
|
)
|
(16.9
|
)
|
||
Equity Earnings
|
5.6
|
|
4.7
|
|
||
Gain on Sale of U.S. Water Services
|
20.1
|
|
—
|
|
||
Other
|
7.4
|
|
2.1
|
|
||
Total Other Income (Expense)
|
16.6
|
|
(10.1
|
)
|
||
Income Before Income Taxes
|
73.4
|
|
47.3
|
|
||
Income Tax Expense (Benefit)
|
2.9
|
|
(3.7
|
)
|
||
Net Income
|
|
$70.5
|
|
|
$51.0
|
|
Average Shares of Common Stock
|
|
|
||||
Basic
|
51.6
|
|
51.2
|
|
||
Diluted
|
51.7
|
|
51.4
|
|
||
Basic Earnings Per Share of Common Stock
|
|
$1.37
|
|
|
$1.00
|
|
Diluted Earnings Per Share of Common Stock
|
|
$1.37
|
|
|
$0.99
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Millions
|
|
|
|
||||
Net Income
|
|
$70.5
|
|
|
|
$51.0
|
|
Other Comprehensive Income (Loss)
|
|
|
|
||||
Unrealized Gain (Loss) on Securities
|
|
|
|
||||
Net of Income Tax Expense of $– and $–
|
0.1
|
|
|
(0.1
|
)
|
||
Defined Benefit Pension and Other Postretirement Benefit Plans
|
|
|
|
||||
Net of Income Tax Expense of $0.1 and $0.1
|
—
|
|
|
0.4
|
|
||
Total Other Comprehensive Income
|
0.1
|
|
|
0.3
|
|
||
Total Comprehensive Income
|
|
$70.6
|
|
|
|
$51.3
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Millions
|
|
|
|
||||
Operating Activities
|
|
|
|
||||
Net Income
|
|
$70.5
|
|
|
|
$51.0
|
|
AFUDC – Equity
|
(0.6
|
)
|
|
(0.3
|
)
|
||
Income from Equity Investments – Net of Dividends
|
(1.2
|
)
|
|
(0.5
|
)
|
||
Gain on Sales of Investments and Property, Plant and Equipment
|
(1.7
|
)
|
|
(0.1
|
)
|
||
Depreciation Expense
|
50.7
|
|
|
44.5
|
|
||
Amortization of PSAs
|
(2.9
|
)
|
|
(6.0
|
)
|
||
Amortization of Other Intangible Assets and Other Assets
|
1.9
|
|
|
2.8
|
|
||
Deferred Income Tax Expense (Benefit)
|
2.6
|
|
|
(4.4
|
)
|
||
Share-Based and ESOP Compensation Expense
|
1.8
|
|
|
1.7
|
|
||
Defined Benefit Pension and Postretirement Benefit Expense
|
1.1
|
|
|
2.2
|
|
||
Provision for Interim Rate Refund
|
0.6
|
|
|
4.4
|
|
||
Payments / Provision for Tax Reform Refund
|
(10.2
|
)
|
|
7.5
|
|
||
Bad Debt Expense
|
0.4
|
|
|
0.3
|
|
||
Gain on Sale of U.S. Water Services
|
(20.1
|
)
|
|
—
|
|
||
Changes in Operating Assets and Liabilities
|
|
|
|
||||
Accounts Receivable
|
20.9
|
|
|
6.3
|
|
||
Inventories
|
(5.1
|
)
|
|
(0.3
|
)
|
||
Prepayments and Other
|
2.9
|
|
|
(1.2
|
)
|
||
Accounts Payable
|
(5.5
|
)
|
|
(0.1
|
)
|
||
Other Current Liabilities
|
(9.9
|
)
|
|
17.3
|
|
||
Cash Contributions to Defined Benefit Pension Plans
|
(10.4
|
)
|
|
(15.0
|
)
|
||
Changes in Regulatory and Other Non-Current Assets
|
0.3
|
|
|
3.8
|
|
||
Changes in Regulatory and Other Non-Current Liabilities
|
(7.0
|
)
|
|
7.4
|
|
||
Cash from Operating Activities
|
79.1
|
|
|
121.3
|
|
||
Investing Activities
|
|
|
|
||||
Proceeds from Sale of Available-for-sale Securities
|
2.7
|
|
|
3.3
|
|
||
Payments for Purchase of Available-for-sale Securities
|
(2.6
|
)
|
|
(5.3
|
)
|
||
Payments for Equity Investments
|
(0.5
|
)
|
|
(1.6
|
)
|
||
Return of Capital from Equity Investments
|
8.3
|
|
|
—
|
|
||
Proceeds from Sale of U.S. Water Services – Net of Transaction Costs and Cash Retained
|
264.7
|
|
|
—
|
|
||
Additions to Property, Plant and Equipment
|
(89.3
|
)
|
|
(88.1
|
)
|
||
Other Investing Activities
|
1.8
|
|
|
2.7
|
|
||
Cash from (for) Investing Activities
|
185.1
|
|
|
(89.0
|
)
|
||
Financing Activities
|
|
|
|
||||
Proceeds from Issuance of Common Stock
|
0.8
|
|
|
4.3
|
|
||
Proceeds from Issuance of Long-Term Debt
|
100.0
|
|
|
—
|
|
||
Repayments of Long-Term Debt
|
(43.8
|
)
|
|
(1.9
|
)
|
||
Acquisition-Related Contingent Consideration Payments
|
(3.8
|
)
|
|
—
|
|
||
Dividends on Common Stock
|
(30.3
|
)
|
|
(28.7
|
)
|
||
Other Financing Activities
|
(0.9
|
)
|
|
(0.2
|
)
|
||
Cash from (for) Financing Activities
|
22.0
|
|
|
(26.5
|
)
|
||
Change in Cash, Cash Equivalents and Restricted Cash
|
286.2
|
|
|
5.8
|
|
||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
79.0
|
|
|
110.1
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$365.2
|
|
|
|
$115.9
|
|
|
Three Months Ended
|
|||||
|
March 31,
|
|||||
|
2019
|
2018
|
||||
Millions Except Per Share Amounts
|
|
|
||||
Common Stock
|
|
|
||||
Balance, Beginning of Period
|
|
$1,428.5
|
|
|
$1,401.4
|
|
Common Stock Issued
|
2.6
|
|
6.0
|
|
||
Balance, End of Period
|
1,431.1
|
|
1,407.4
|
|
||
|
|
|
||||
Accumulated Other Comprehensive Loss
|
|
|
||||
Balance, Beginning of Period
|
(27.3
|
)
|
(28.2
|
)
|
||
Other Comprehensive Income - Net of Income Taxes
|
|
|
||||
Unrealized Gain (Loss) on Debt Securities
|
0.1
|
|
(0.1
|
)
|
||
Defined Benefit Pension and Other Postretirement Plans
|
—
|
|
0.4
|
|
||
Balance, End of Period
|
(27.2
|
)
|
(27.9
|
)
|
||
|
|
|
||||
Retained Earnings
|
|
|
||||
Balance, Beginning of Period
|
754.6
|
|
695.5
|
|
||
Net Income
|
70.5
|
|
51.0
|
|
||
Common Stock Dividends
|
(30.3
|
)
|
(28.7
|
)
|
||
Balance, End of Period
|
794.8
|
|
717.8
|
|
||
|
|
|
||||
Total Shareholders’ Equity
|
|
$2,198.7
|
|
|
$2,097.3
|
|
|
|
|
||||
Dividends Per Share of Common Stock
|
|
$0.5875
|
|
|
$0.56
|
|
Cash, Cash Equivalents and Restricted Cash
|
March 31,
2019 |
|
|
December 31,
2018 |
|
|
March 31,
2018 |
|
|
December 31,
2017 |
|
||||
Millions
|
|
|
|
|
|
|
|
||||||||
Cash and Cash Equivalents
|
|
$353.3
|
|
|
|
$69.1
|
|
|
|
$98.5
|
|
|
|
$98.9
|
|
Restricted Cash included in Prepayments and Other
|
7.2
|
|
|
1.3
|
|
|
8.8
|
|
|
2.6
|
|
||||
Restricted Cash included in Other Non-Current Assets
|
4.7
|
|
|
8.6
|
|
|
8.6
|
|
|
8.6
|
|
||||
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows
|
|
$365.2
|
|
|
|
$79.0
|
|
|
|
$115.9
|
|
|
|
$110.1
|
|
Inventories – Net
|
March 31,
2019 |
|
|
December 31,
2018 |
|
||
Millions
|
|
|
|
||||
Fuel
(a)
|
|
$29.4
|
|
|
|
$26.0
|
|
Materials and Supplies
|
44.4
|
|
|
44.2
|
|
||
Raw Materials
(b)
|
—
|
|
|
2.8
|
|
||
Work in Progress
(b)
|
—
|
|
|
6.1
|
|
||
Finished Goods
(b)
|
—
|
|
|
8.4
|
|
||
Reserve for Obsolescence
(b)
|
—
|
|
|
(0.8
|
)
|
||
Total Inventories – Net
|
|
$73.8
|
|
|
|
$86.7
|
|
(a)
|
Fuel consists primarily of coal inventory at Minnesota Power.
|
(b)
|
On March 26, 2019, ALLETE completed the sale of U.S. Water Services which resulted in the removal of the related inventory items from the Consolidated Balance Sheet.
|
Other Non-Current Assets
|
March 31,
2019 |
|
|
December 31,
2018 |
|
||
Millions
|
|
|
|
||||
Contract Assets
(a)
|
|
$29.8
|
|
|
|
$30.7
|
|
Finance Receivable
|
10.4
|
|
|
10.4
|
|
||
Operating Lease Right-of-use Assets
(b)
|
34.0
|
|
|
—
|
|
||
ALLETE Properties
|
24.0
|
|
|
24.4
|
|
||
Other
|
82.7
|
|
|
86.9
|
|
||
Total Other Non-Current Assets
|
|
$180.9
|
|
|
|
$152.4
|
|
(a)
|
Contract Assets include payments made to customers as an incentive to execute or extend service agreements. The contract payments are being amortized over the term of the respective agreements as a reduction to revenue.
|
(b)
|
See Leases.
|
Other Current Liabilities
|
March 31,
2019 |
|
|
December 31,
2018 |
|
||
Millions
|
|
|
|
||||
Provision for Interim Rate Refund
(a)
|
|
$40.6
|
|
|
|
$40.0
|
|
PSAs
|
12.4
|
|
|
12.6
|
|
||
Contract Liabilities
(b)
|
0.4
|
|
|
7.6
|
|
||
Provision for Tax Reform Refund
(c)
|
0.5
|
|
|
10.7
|
|
||
Contingent Consideration
(d)
|
—
|
|
|
3.8
|
|
||
Operating Lease Liabilities
(e)
|
8.4
|
|
|
—
|
|
||
Other
|
36.2
|
|
|
53.8
|
|
||
Total Other Current Liabilities
|
|
$98.5
|
|
|
|
$128.5
|
|
(a)
|
Provision for Interim Rate Refund is expected to be refunded to Minnesota Power’s regulated retail customers in the second quarter of 2019.
|
(b)
|
Contract Liabilities include deposits received as a result of entering into contracts with our customers prior to completing our performance obligations.
|
(c)
|
Provision for Tax Reform Refund related to the income tax benefits of the TCJA in 2018 was refunded to Minnesota Power customers in the first quarter of 2019 and will be refunded to SWL&P customers in 2019 and 2020.
|
(d)
|
Contingent Consideration related to the earnings-based payment resulting from the U.S. Water Services acquisition was paid in the first quarter of 2019.
|
(e)
|
See Leases.
|
Other Non-Current Liabilities
|
March 31,
2019 |
|
|
December 31,
2018 |
|
||
Millions
|
|
|
|
||||
Asset Retirement Obligation
|
|
$142.0
|
|
|
|
$138.6
|
|
PSAs
|
73.9
|
|
|
76.9
|
|
||
Operating Lease Liabilities
(a)
|
25.6
|
|
|
—
|
|
||
Other
|
46.4
|
|
|
47.1
|
|
||
Total Other Non-Current Liabilities
|
|
$287.9
|
|
|
|
$262.6
|
|
(a)
|
See Leases.
|
Three Months Ended March 31,
|
2019
|
|
|
2018
|
|
||
Millions
|
|
|
|
||||
Cash Paid for Interest – Net of Amounts Capitalized
|
|
$19.7
|
|
|
|
$19.3
|
|
Noncash Investing and Financing Activities
|
|
|
|
|
|
||
Decrease in Accounts Payable for Capital Additions to Property, Plant and Equipment
|
$(1.1)
|
|
$(48.1)
|
||||
Reclassification of Property, Plant and Equipment to Inventory
(a)
|
—
|
|
|
|
$46.9
|
|
|
Recognition of Right-of-use Assets and Lease Liabilities
(b)
|
$34.0
|
|
—
|
|
|||
Capitalized Asset Retirement Costs
|
|
$1.6
|
|
|
|
$0.8
|
|
AFUDC–Equity
|
|
$0.6
|
|
|
|
$0.3
|
|
(a)
|
In February 2018, Montana-Dakota Utilities exercised its option to purchase the Thunder Spirit II wind energy facility upon completion, resulting in a reclassification from Property, Plant and Equipment – Net to Inventories – Net for project costs incurred in the prior year.
|
(b)
|
See Leases.
|
Three Months Ended March 31,
|
|
2019
|
||
Millions
|
|
|
||
Operating Lease Cost
|
|
|
$2.9
|
|
|
|
|
||
Other Information:
|
|
|
||
Operating Cash Flows From Operating Leases
|
|
|
$2.9
|
|
|
|
|
||
Balance Sheet Information Related to Leases:
|
|
|
||
Other Non-Current Assets
|
|
|
$34.0
|
|
Total Operating Lease Right-of-use Assets
|
|
|
$34.0
|
|
|
|
|
||
Other Current Liabilities
|
|
|
$8.4
|
|
Other Non-Current Liabilities
|
|
25.6
|
|
|
Total Operating Lease Liabilities
|
|
|
$34.0
|
|
|
|
|
||
Weighted Average Remaining Lease Term (Years):
|
|
|
||
Operating Leases - Vehicles and Equipment
|
|
4
|
|
|
Operating Leases - Land and Other
|
|
29
|
|
|
|
|
|
||
Weighted Average Discount Rate:
|
|
|
||
Operating Leases - Vehicles and Equipment
|
|
3.6
|
%
|
|
Operating Leases - Land and Other
|
|
4.5
|
%
|
|
March 31, 2019
|
||
Millions
|
|
||
2019
|
|
$9.9
|
|
2020
|
7.9
|
|
|
2021
|
6.1
|
|
|
2022
|
4.9
|
|
|
2023
|
3.1
|
|
|
Thereafter
|
9.4
|
|
|
Total Lease Payments Due
|
41.3
|
|
|
Less: Imputed Interest
|
7.3
|
|
|
Total Lease Obligations
|
34.0
|
|
|
Less: Current Lease Obligations
|
8.4
|
|
|
Long-term Lease Obligations
|
|
$25.6
|
|
Regulatory Assets and Liabilities
|
March 31,
2019 |
|
|
December 31,
2018 |
|
||
Millions
|
|
|
|
||||
Non-Current Regulatory Assets
|
|
|
|
||||
Defined Benefit Pension and Other Postretirement Benefit Plans
|
|
$218.0
|
|
|
|
$218.5
|
|
Income Taxes
|
103.2
|
|
|
105.5
|
|
||
Asset Retirement Obligations
|
32.4
|
|
|
32.6
|
|
||
Boswell 1 and 2 Net Plant and Equipment
|
14.8
|
|
|
16.3
|
|
||
Manufactured Gas Plant
|
8.1
|
|
|
8.0
|
|
||
PPACA Income Tax Deferral
|
4.9
|
|
|
5.0
|
|
||
Other
|
3.7
|
|
|
3.6
|
|
||
Total Non-Current Regulatory Assets
|
|
$385.1
|
|
|
|
$389.5
|
|
|
|
|
|
||||
Current Regulatory Liabilities
(a)
|
|
|
|
||||
Provision for Interim Rate Refund
(b)
|
|
$40.6
|
|
|
|
$40.0
|
|
Transmission Formula Rates Refund
|
3.3
|
|
|
4.4
|
|
||
Provision for Tax Reform Refund
(c)
|
0.5
|
|
|
10.7
|
|
||
Total Current Regulatory Liabilities
|
44.4
|
|
|
55.1
|
|
||
Non-Current Regulatory Liabilities
|
|
|
|
||||
Income Taxes
|
389.4
|
|
|
396.4
|
|
||
Wholesale and Retail Contra AFUDC
|
67.3
|
|
|
64.4
|
|
||
Plant Removal Obligations
|
26.8
|
|
|
25.1
|
|
||
North Dakota Investment Tax Credits
|
12.3
|
|
|
14.7
|
|
||
Conservation Improvement Program
|
5.2
|
|
|
1.5
|
|
||
Transmission Formula Rates Refund
|
1.6
|
|
|
1.6
|
|
||
Cost Recovery Riders
|
—
|
|
|
6.9
|
|
||
Other
|
1.5
|
|
|
1.5
|
|
||
Total Non-Current Regulatory Liabilities
|
504.1
|
|
|
512.1
|
|
||
Total Regulatory Liabilities
|
|
$548.5
|
|
|
|
$567.2
|
|
(a)
|
Current regulatory liabilities are presented within Other Current Liabilities on the Consolidated Balance Sheet.
|
(b)
|
This amount is expected to be refunded to Minnesota Power’s regulated retail customers in the second quarter of 2019.
|
(c)
|
Provision for Tax Reform Refund related to the income tax benefits of the TCJA in 2018 was refunded to Minnesota Power customers in the first quarter of 2019 and will be refunded to SWL&P customers in 2019 and 2020.
|
ALLETE’s Investment in ATC
|
|
||
Millions
|
|
||
Equity Investment Balance as of December 31, 2018
|
|
$128.1
|
|
Cash Investments
|
0.4
|
|
|
Equity in ATC Earnings
|
5.6
|
|
|
Distributed ATC Earnings
|
(4.4
|
)
|
|
Amortization of the Remeasurement of Deferred Income Taxes
|
0.3
|
|
|
Equity Investment Balance as of March 31, 2019
|
|
$130.0
|
|
|
December 31,
2018 |
|
|
Amortization
|
|
Other
(b)
|
|
March 31,
2019 |
|
||
Millions
|
|
|
|
|
|
|
|
||||
Intangible Assets
|
|
|
|
|
|
|
|
||||
Definite-Lived Intangible Assets
|
|
|
|
|
|
|
|
||||
Customer Relationships
|
|
$50.7
|
|
|
$(1.1)
|
|
$(49.6)
|
|
—
|
|
|
Developed Technology and Other
(a)
|
7.5
|
|
|
(0.3)
|
|
(6.1)
|
|
|
$1.1
|
|
|
Total Definite-Lived Intangible Assets
|
58.2
|
|
|
(1.4)
|
|
(55.7)
|
|
1.1
|
|
||
Indefinite-Lived Intangible Assets
|
|
|
|
|
|
|
|
||||
Trademarks and Trade Names
|
16.6
|
|
|
n/a
|
|
(16.6)
|
|
—
|
|
||
Total Intangible Assets
|
|
$74.8
|
|
|
$(1.4)
|
|
$(72.3)
|
|
|
$1.1
|
|
(a)
|
Developed Technology and Other includes patents, non-compete agreements, land easements and trade names with finite lives.
|
(b)
|
On March 26, 2019, ALLETE completed the sale of U.S. Water Services which resulted in the removal of the related intangible assets from the Consolidated Balance Sheet.
|
|
Fair Value as of March 31, 2019
|
||||||||||||||
Recurring Fair Value Measures
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
Millions
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments
(a)
|
|
|
|
|
|
|
|
||||||||
Available-for-sale – Equity Securities
|
|
$12.3
|
|
|
—
|
|
|
—
|
|
|
|
$12.3
|
|
||
Available-for-sale – Corporate and Governmental Debt Securities
(b)
|
—
|
|
|
|
$8.3
|
|
|
—
|
|
|
8.3
|
|
|||
Cash Equivalents
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||
Total Fair Value of Assets
|
|
$13.3
|
|
|
|
$8.3
|
|
|
—
|
|
|
|
$21.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Deferred Compensation
(c)
|
—
|
|
|
|
$21.6
|
|
|
—
|
|
|
|
$21.6
|
|
||
Total Fair Value of Liabilities
|
—
|
|
|
|
$21.6
|
|
|
—
|
|
|
|
$21.6
|
|
||
Total Net Fair Value of Assets (Liabilities)
|
|
$13.3
|
|
|
$(13.3)
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Fair Value as of December 31, 2018
|
||||||||||||||
Recurring Fair Value Measures
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||
Millions
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments
(a)
|
|
|
|
|
|
|
|
||||||||
Available-for-sale – Equity Securities
|
|
$12.2
|
|
|
—
|
|
|
—
|
|
|
|
$12.2
|
|
||
Available-for-sale – Corporate and Governmental Debt Securities
|
—
|
|
|
|
$8.0
|
|
|
—
|
|
|
8.0
|
|
|||
Cash Equivalents
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||
Total Fair Value of Assets
|
|
$13.2
|
|
|
|
$8.0
|
|
|
—
|
|
|
|
$21.2
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Deferred Compensation
(c)
|
—
|
|
|
|
$19.8
|
|
|
—
|
|
|
|
$19.8
|
|
||
U.S. Water Services Contingent Consideration
(d)
|
—
|
|
|
—
|
|
|
|
$3.8
|
|
|
3.8
|
|
|||
Total Fair Value of Liabilities
|
—
|
|
|
|
$19.8
|
|
|
|
$3.8
|
|
|
|
$23.6
|
|
|
Total Net Fair Value of Assets (Liabilities)
|
|
$13.2
|
|
|
$(11.8)
|
|
$(3.8)
|
|
$(2.4)
|
(a)
|
Included in Other Investments on the Consolidated Balance Sheet.
|
(b)
|
As of
March 31, 2019
, the aggregate amount of available-for-sale corporate and governmental debt securities maturing in one year or less was
$1.7 million
, in one year to less than three years was
$4.0 million
, in three years to less than five years was
$1.8 million
and in five or more years was
$0.8 million
.
|
(c)
|
Included in Other Non-Current Liabilities on the Consolidated Balance Sheet.
|
(d)
|
Included in Other Current Liabilities on the Consolidated Balance Sheet.
|
Financial Instruments
|
Carrying Amount
|
|
Fair Value
|
Millions
|
|
|
|
Long-Term Debt, Including Long-Term Debt Due Within One Year
|
|
|
|
March 31, 2019
|
$1,549.0
|
|
$1,639.5
|
December 31, 2018
|
$1,495.2
|
|
$1,534.6
|
March 31, 2019
|
Principal
|
|
|
Unamortized Debt Issuance Costs
|
|
Total
|
|
||
Millions
|
|
|
|
|
|
||||
Short-Term Debt
|
|
$14.7
|
|
|
$(0.4)
|
|
|
$14.3
|
|
Long-Term Debt
|
1,534.3
|
|
|
(9.3)
|
|
1,525.0
|
|
||
Total Debt
|
|
$1,549.0
|
|
|
$(9.7)
|
|
|
$1,539.3
|
|
December 31, 2018
|
Principal
|
|
|
Unamortized Debt Issuance Costs
|
|
Total
|
|
||
Millions
|
|
|
|
|
|
||||
Short-Term Debt
|
|
$57.9
|
|
|
$(0.4)
|
|
|
$57.5
|
|
Long-Term Debt
|
1,437.3
|
|
|
(8.8)
|
|
1,428.5
|
|
||
Total Debt
|
|
$1,495.2
|
|
|
$(9.2)
|
|
|
$1,486.0
|
|
Maturity Date
|
Principal Amount
|
Interest Rate
|
March 1, 2029
|
$70 Million
|
4.08%
|
March 1, 2049
|
$30 Million
|
4.47%
|
•
|
Expanding renewable power supply for both our operations and the operations of others;
|
•
|
Providing energy conservation initiatives for our customers and engaging in other demand side management efforts;
|
•
|
Improving efficiency of our generating facilities;
|
•
|
Supporting research of technologies to reduce carbon emissions from generating facilities and carbon sequestration efforts;
|
•
|
Evaluating and developing less carbon intensive future generating assets such as efficient and flexible natural gas-fired generating facilities;
|
•
|
Managing vegetation on right-of-way corridors to reduce potential wildfire or storm damage risks; and
|
•
|
Practicing sound forestry management in our service territories to create landscapes more resilient to disruption from climate-related changes, including planting and managing long-lived conifer species.
|
|
|
|
2019
|
|
|
|
|
|
2018
|
|
|
||||||||||
Reconciliation of Basic and Diluted
|
|
|
Dilutive
|
|
|
|
|
|
Dilutive
|
|
|
||||||||||
Earnings Per Share
|
Basic
|
|
Securities
|
|
Diluted
|
|
Basic
|
|
Securities
|
|
Diluted
|
||||||||||
Millions Except Per Share Amounts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
$70.5
|
|
|
|
|
|
$70.5
|
|
|
|
$51.0
|
|
|
|
|
|
$51.0
|
|
||
Average Common Shares
|
51.6
|
|
|
0.1
|
|
|
51.7
|
|
|
51.2
|
|
|
0.2
|
|
|
51.4
|
|
||||
Earnings Per Share
|
|
$1.37
|
|
|
|
|
|
$1.37
|
|
|
|
$1.00
|
|
|
|
|
|
$0.99
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Millions
|
|
|
|
||||
Current Income Tax Expense
(a)
|
|
|
|
||||
Federal
|
—
|
|
|
—
|
|
||
State
|
|
$0.3
|
|
|
|
$0.7
|
|
Total Current Income Tax Expense
|
|
$0.3
|
|
|
|
$0.7
|
|
Deferred Income Tax Expense (Benefit)
|
|
|
|
||||
Federal
(b)
|
$(9.7)
|
|
$(6.8)
|
||||
State
(c)
|
12.5
|
|
|
2.6
|
|
||
Investment Tax Credit Amortization
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Total Deferred Income Tax Expense (Benefit)
|
$2.6
|
|
$(4.4)
|
||||
Total Income Tax Expense (Benefit)
|
$2.9
|
|
$(3.7)
|
(a)
|
For each of the
three months ended March 31, 2019, and 2018
, 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. Federal and state NOLs are being carried forward to offset current and future taxable income.
|
(b)
|
For each of the
three months ended March 31, 2019, and 2018
, the federal income tax benefit is primarily due to production tax credits.
|
(c)
|
For the
three months ended March 31, 2019
, the state income tax expense is primarily due to the sale of U.S. Water Services.
|
|
Three Months Ended
|
||||||
Reconciliation of Taxes from Federal Statutory
|
March 31,
|
||||||
Rate to Total Income Tax Expense
|
2019
|
|
2018
|
||||
Millions
|
|
|
|
||||
Income Before Income Taxes
|
|
$73.4
|
|
|
|
$47.3
|
|
Statutory Federal Income Tax Rate
|
21
|
%
|
|
21
|
%
|
||
Income Taxes Computed at Statutory Federal Rate
|
|
$15.4
|
|
|
|
$9.9
|
|
Increase (Decrease) in Income Tax Due to:
|
|
|
|
||||
State Income Taxes – Net of Federal Income Tax Benefit
|
10.1
|
|
|
2.6
|
|
||
Production Tax Credits
|
(16.3
|
)
|
|
(14.4
|
)
|
||
Regulatory Differences – Excess Deferred Tax
|
(3.2
|
)
|
|
(2.2
|
)
|
||
U.S. Water Services Sale of Stock Basis Difference
|
2.4
|
|
|
—
|
|
||
Share-Based Compensation
|
(0.9
|
)
|
|
(0.5
|
)
|
||
Other
|
(4.6
|
)
|
|
0.9
|
|
||
Total Income Tax Expense (Benefit)
|
$2.9
|
|
$(3.7)
|
|
Pension
|
|
Other
Postretirement
|
||||||||||||
Components of Net Periodic Benefit Cost
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Millions
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31,
|
|
|
|
|
|
|
|
||||||||
Service Cost
|
|
$2.3
|
|
|
|
$2.7
|
|
|
|
$1.0
|
|
|
|
$1.2
|
|
Non-Service Cost Components
(a)
|
|
|
|
|
|
|
|
||||||||
Interest Cost
|
8.0
|
|
|
7.4
|
|
|
1.9
|
|
|
1.8
|
|
||||
Expected Return on Plan Assets
|
(11.0
|
)
|
|
(11.0
|
)
|
|
(2.6
|
)
|
|
(2.7
|
)
|
||||
Amortization of Prior Service Credits
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
Amortization of Net Loss
|
1.8
|
|
|
3.0
|
|
|
0.1
|
|
|
0.2
|
|
||||
Net Periodic Benefit Cost
|
|
$1.1
|
|
|
|
$2.1
|
|
|
—
|
|
|
|
$0.1
|
|
(a)
|
These components of net periodic benefit cost are included in the line item “Other” under Other Income (Expense) on the Consolidated Statement of Income.
|
|
Three Months Ended
|
|||||
|
March 31,
|
|||||
|
2019
|
2018
|
||||
Millions
|
|
|
||||
Operating Revenue
|
|
|
||||
Regulated Operations
|
|
|
||||
Residential
|
|
$45.2
|
|
|
$40.7
|
|
Commercial
|
38.9
|
|
36.6
|
|
||
Municipal
|
15.4
|
|
14.0
|
|
||
Industrial
|
121.6
|
|
114.9
|
|
||
Other Power Suppliers
|
39.4
|
|
43.7
|
|
||
Other
|
21.7
|
|
20.3
|
|
||
Total Regulated Operations
|
282.2
|
|
270.2
|
|
||
|
|
|
||||
Energy Infrastructure and Related Services
|
|
|
||||
|
|
|
||||
ALLETE Clean Energy
|
|
|
||||
Long-term PSA
|
14.6
|
|
18.6
|
|
||
Other
|
2.9
|
|
6.0
|
|
||
Total ALLETE Clean Energy
|
17.5
|
|
24.6
|
|
||
|
|
|
||||
U.S. Water Services
(a)
|
|
|
||||
Point-in-Time
|
19.0
|
|
22.3
|
|
||
Contract
|
9.2
|
|
9.5
|
|
||
Capital Project
|
5.2
|
|
6.4
|
|
||
Total U.S. Water Services
|
33.4
|
|
38.2
|
|
||
|
|
|
||||
Corporate and Other
|
|
|
||||
Long-term Contract
|
20.2
|
|
20.0
|
|
||
Other
|
3.9
|
|
5.2
|
|
||
Total Corporate and Other
|
24.1
|
|
25.2
|
|
||
Total Operating Revenue
|
|
$357.2
|
|
|
$358.2
|
|
Net Income (Loss)
|
|
|
||||
Regulated Operations
|
|
$51.5
|
|
|
$43.9
|
|
|
|
|
||||
Energy Infrastructure and Related Services
|
|
|
||||
ALLETE Clean Energy
|
5.8
|
|
8.1
|
|
||
U.S. Water Services
(a)
|
(1.1
|
)
|
(1.4
|
)
|
||
|
|
|
||||
Corporate and Other
(a)
|
14.3
|
|
0.4
|
|
||
Total Net Income
|
|
$70.5
|
|
|
$51.0
|
|
(a)
|
On March 26, 2019, ALLETE completed the sale of U.S. Water Services. The Company recognized a gain on the sale of approximately
$10 million
after-tax reflected in Corporate and Other in 2019. (See Note 1. Operations and Significant Accounting Policies.)
|
|
March 31,
2019 |
|
December 31,
2018 |
|
||
Millions
|
|
|
||||
Assets
|
|
|
||||
Regulated Operations
|
|
$3,962.7
|
|
|
$3,952.5
|
|
|
|
|
||||
Energy Infrastructure and Related Services
|
|
|
||||
ALLETE Clean Energy
|
643.8
|
|
606.6
|
|
||
U.S. Water Services
(a)
|
—
|
|
295.8
|
|
||
|
|
|
||||
Corporate and Other
|
612.3
|
|
310.1
|
|
||
Total Assets
|
|
$5,218.8
|
|
|
$5,165.0
|
|
(a)
|
On March 26, 2019, ALLETE completed the sale of U.S. Water Services. (See Note 1. Operations and Significant Accounting Policies.)
|
Three Months Ended March 31,
|
2019
|
|
2018
|
|
||
Millions
|
|
|
||||
Operating Revenue – Utility
|
|
$282.2
|
|
|
$270.2
|
|
Fuel, Purchased Power and Gas – Utility
|
109.8
|
|
100.9
|
|
||
Transmission Services – Utility
|
18.3
|
|
18.4
|
|
||
Operating and Maintenance
|
47.7
|
|
55.5
|
|
||
Depreciation and Amortization
|
39.8
|
|
34.3
|
|
||
Taxes Other than Income Taxes
|
12.3
|
|
15.1
|
|
||
Operating Income
|
54.3
|
|
46.0
|
|
||
Interest Expense
|
(15.5
|
)
|
(14.9
|
)
|
||
Equity Earnings in ATC
|
5.6
|
|
4.7
|
|
||
Other Income
|
4.3
|
|
1.6
|
|
||
Income Before Income Taxes
|
48.7
|
|
37.4
|
|
||
Income Tax Benefit
|
(2.8
|
)
|
(6.5
|
)
|
||
Net Income
|
|
$51.5
|
|
|
$43.9
|
|
Kilowatt-hours Sold
|
|
|
|
|
Quantity
|
|
%
|
||||
Three Months Ended March 31,
|
2019
|
|
|
2018
|
|
|
Variance
|
|
Variance
|
||
Millions
|
|
|
|
|
|
|
|
||||
Regulated Utility
|
|
|
|
|
|
|
|
||||
Retail and Municipal
|
|
|
|
|
|
|
|
||||
Residential
|
349
|
|
|
342
|
|
|
7
|
|
|
2.0
|
%
|
Commercial
|
366
|
|
|
367
|
|
|
(1
|
)
|
|
(0.3
|
)%
|
Industrial
|
1,814
|
|
|
1,843
|
|
|
(29
|
)
|
|
(1.6
|
)%
|
Municipal
|
203
|
|
|
219
|
|
|
(16
|
)
|
|
(7.3
|
)%
|
Total Retail and Municipal
|
2,732
|
|
|
2,771
|
|
|
(39
|
)
|
|
(1.4
|
)%
|
Other Power Suppliers
|
822
|
|
|
1,003
|
|
|
(181
|
)
|
|
(18.0
|
)%
|
Total Regulated Utility Kilowatt-hours Sold
|
3,554
|
|
|
3,774
|
|
|
(220
|
)
|
|
(5.8
|
)%
|
Three Months Ended March 31,
|
2019
|
|
2018
|
|
||
Millions
|
|
|
||||
Operating Revenue
|
|
$17.5
|
|
|
$24.6
|
|
Net Income
|
|
$5.8
|
|
|
$8.1
|
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
2018
|
||||||||
Production and Operating Revenue
|
kWh
|
Revenue
|
kWh
|
Revenue
|
||||||
Millions
|
|
|
|
|
||||||
Wind Energy Facilities
|
|
|
|
|
||||||
Armenia Mountain
|
80.4
|
|
|
$7.4
|
|
91.5
|
|
|
$8.3
|
|
Chanarambie/Viking
|
65.2
|
|
3.2
|
|
78.7
|
|
3.9
|
|
||
Condon
|
13.4
|
|
1.1
|
|
34.3
|
|
2.8
|
|
||
Lake Benton
|
52.6
|
|
2.9
|
|
70.4
|
|
3.4
|
|
||
Storm Lake I
|
53.4
|
|
1.1
|
|
62.5
|
|
3.3
|
|
||
Storm Lake II
|
34.8
|
|
1.6
|
|
47.9
|
|
2.9
|
|
||
Other
|
6.9
|
|
0.2
|
|
—
|
|
—
|
|
||
Total Production and Operating Revenue
|
306.7
|
|
|
$17.5
|
|
385.3
|
|
|
$24.6
|
|
Three Months Ended March 31,
|
2019
|
|
2018
|
|
||
Millions
|
|
|
||||
Operating Revenue
|
|
$33.4
|
|
|
$38.2
|
|
Net Loss
|
$(1.1)
|
$(1.4)
|
(a)
|
The PSA expiration assumes the exercise of four one-year renewal options that ALLETE Clean Energy has the sole right to exercise.
|
|
March 31,
2019 |
|
|
%
|
|
December 31,
2018 |
|
|
%
|
||
Millions
|
|
|
|
|
|
|
|
||||
Shareholders’ Equity
|
|
$2,198.7
|
|
|
59
|
|
|
$2,155.8
|
|
|
59
|
Long-Term Debt (Including Long-Term Debt Due Within One Year)
|
1,549.0
|
|
|
41
|
|
1,495.2
|
|
|
41
|
||
|
|
$3,747.7
|
|
|
100
|
|
|
$3,651.0
|
|
|
100
|
For the Three Months Ended March 31,
|
2019
|
|
|
2018
|
|
||
Millions
|
|
|
|
||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
$79.0
|
|
|
|
$110.1
|
|
Cash Flows from (used for)
|
|
|
|
||||
Operating Activities
|
79.1
|
|
|
121.3
|
|
||
Investing Activities
|
185.1
|
|
|
(89.0
|
)
|
||
Financing Activities
|
22.0
|
|
|
(26.5
|
)
|
||
Change in Cash, Cash Equivalents and Restricted Cash
|
286.2
|
|
|
5.8
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$365.2
|
|
|
|
$115.9
|
|
Credit Ratings
|
S&P Global Ratings
|
Moody’s
|
Issuer Credit Rating
|
BBB+
|
Baa1
|
Commercial Paper
|
A-2
|
P-2
|
First Mortgage Bonds
|
(a)
|
A2
|
(a)
|
Not rated by S&P Global Ratings.
|
Exhibit
Number
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH
|
|
XBRL Schema
|
101.CAL
|
|
XBRL Calculation
|
101.DEF
|
|
XBRL Definition
|
101.LAB
|
|
XBRL Label
|
101.PRE
|
|
XBRL Presentation
|
*
|
Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. ALLETE will furnish the omitted schedules to the SEC upon request.
|
|
|
ALLETE, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
May 2, 2019
|
|
/s/ Robert J. Adams
|
|
|
Robert J. Adams
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
May 2, 2019
|
|
/s/ Steven W. Morris
|
|
|
Steven W. Morris
|
|
|
Vice President, Controller and Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
1 Year Allete Chart |
1 Month Allete Chart |
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