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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.)