Business Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segments [Text Block]

BUSINESS SEGMENTS

During the third quarter of 2015, management updated our reportable segment presentation to reflect the manner in which we operate, assess, and allocate resources after our recent acquisitions. We now present three reportable segments, Regulated Operations, ALLETE Clean Energy and U.S. Water Services. Prior period amounts have been revised to conform with the current business segment presentation.

Regulated Operations includes three operating segments which consist of 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. ALLETE Clean Energy is 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 is our integrated water management company which was acquired in February 2015. The ALLETE Clean Energy and U.S. Water Services reportable segments comprise our Energy Infrastructure and Related Services businesses. We also present Corporate and Other which includes two operating segments, BNI Energy, our coal mining operations in North Dakota, and ALLETE Properties, our legacy Florida real estate investment, along with 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.

NOTE 14.  BUSINESS SEGMENTS (Continued)

	Three Months Ended
	March 31,
	2016			2015
Millions
Operating Revenue
Regulated Operations	$252.3			$262.8
Energy Infrastructure and Related Services
ALLETE Clean Energy	23.6			12.4
U.S. Water Services	32.4			15.5
Corporate and Other	25.5			29.3
Total Operating Revenue		$333.8			$320.0
Net Income (Loss) Attributable to ALLETE
Regulated Operations (a)		$42.4			$41.0
Energy Infrastructure and Related Services
ALLETE Clean Energy	6.1			2.5
U.S. Water Services	(0.5		)	(0.1		)
Corporate and Other (a)	(2.1		)	(3.5		)
Total Net Income Attributable to ALLETE		$45.9			$39.9

(a) In 2015, an intercompany loan agreement was entered into and interest expense was allocated to certain subsidiaries which is eliminated in consolidation. Prior period segment results have been revised to conform to the current presentation as if the intercompany loan existed as of January 1, 2015.

	March 31, 2016		December 31, 2015
Millions
Assets
Regulated Operations (a)	$3,822.3		$3,853.1
Energy Infrastructure and Related Services
ALLETE Clean Energy (a)	498.1		501.5
U.S. Water Services	256.6		258.3
Corporate and Other	295.7		281.6
Total Assets (a)		$4,872.7		$4,894.5

(a) As a result of revised accounting guidance adopted in the first quarter of 2016, we reclassified unamortized debt issuance costs from Other Non-Current Assets to Long-Term Debt on the Consolidated Balance Sheet. Prior period segment assets have been revised to conform to the current presentation. (See Note 1. Operations and Significant Accounting Policies.)