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Acquisitions
12 Months Ended
Dec. 31, 2013
Acquisitions [Abstract]  
Acquisitions [Text Block]
ACQUISITIONS

On January 30, 2014, ALLETE Clean Energy acquired wind energy facilities located in Lake Benton, Minnesota (Lake Benton), Storm Lake, Iowa (Storm Lake) and Condon, Oregon (Condon) from The AES Corporation (AES) for approximately $27.0 million, subject to a working capital adjustment. The acquisition was financed with cash from operations. The necessary FERC approvals were received in December 2013. ALLETE Clean Energy also has an option to acquire a fourth wind facility from AES in Armenia Mountain, Pennsylvania (Armenia Mountain), in June 2015. In November 2013, we made a deposit of $5.4 million for cash held in escrow for the acquisition of the three wind facilities, which is classified as restricted cash and included in Other Non-Current Assets on our Consolidated Balance Sheet.

The Lake Benton, Storm Lake and Condon facilities have 104 MW, 77 MW and 50 MW of generating capability, respectively. Lake Benton and Storm Lake began commercial operations in 1999, 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. Pursuant to the acquisition agreement, ALLETE Clean Energy has an option to acquire the 101 MW Armenia Mountain wind energy facility from AES in June 2015. Armenia Mountain began operations in 2009.

The purchase price will be allocated based on the estimated fair values of assets acquired and the liabilities assumed at the date of acquisition. The acquisition will be accounted for as a business combination. We are currently in the process of accounting for the acquisition, therefore, certain disclosures, including the allocation of the purchase price, will be included in the Form 10-Q for the period ending March 31, 2014.