Investment in ATC

3 Months Ended

Mar. 31, 2012

INVESTMENT IN ATC

Our wholly-owned subsidiary, Rainy River Energy, 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. ATC rates are FERC-approved and are based on a 12.2 percent return on common equity dedicated to utility plant. We account for our investment in ATC under the equity method of accounting. As of March 31, 2012, our equity investment in ATC was $100.5 million ($98.9 million at December 31, 2011). In the first quarter of 2012, we invested $0.8 million in ATC, and on April 30, 2012, we invested an additional $1.2 million. In total, we expect to invest approximately $3.0 million in 2012.



ALLETE’s Investment in ATC
Millions
Equity Investment Balance as of December 31, 2011	$98.9
Cash Investments	0.8
Equity in ATC Earnings	4.6
Distributed ATC Earnings	(3.8	)
Equity Investment Balance as of March 31, 2012	$100.5

ATC’s summarized financial data for the quarters ended March 31, 2012 and 2011, is as follows:



	Quarter Ended
ATC Summarized Financial Data	March 31,
Income Statement Data	2012	2011
Millions
Revenue	$147.7	$139.6
Operating Expense	69.6	63.1
Other Expense	20.0	22.3
Net Income	$58.1	$54.2

ALLETE’s Equity in Net Income	$4.6	$4.4

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References+ Details