Cash, Cash Equivalents and Restricted Cash. We consider all investments purchased with original maturities of three months or less to be cash equivalents. As of September 30, 2022, restricted cash amounts included in Prepayments and Other on the Consolidated Balance Sheet include collateral deposits required under ALLETE Clean Energy loan and tax equity financing agreements. The restricted cash amounts included in Other Non-Current Assets represent collateral deposits required under an ALLETE Clean Energy loan agreement as well as PSAs. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheet that aggregate to the amounts presented in the Consolidated Statement of Cash Flows.


Cash, Cash Equivalents and Restricted Cash	September 30, 2022	December 31, 2021	September 30, 2021	December 31, 2020
Millions
Cash and Cash Equivalents	$42.1	$45.1	$59.0	$44.3
Restricted Cash included in Prepayments and Other	4.2	0.3	4.1	0.8
Restricted Cash included in Other Non-Current Assets	2.3	2.3	2.3	20.1
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows	$48.6	$47.7	$65.4	$65.2

Inventories – Net. Inventories are stated at the lower of cost or net realizable value. Inventories in our Regulated Operations segment are carried at an average cost or first-in, first-out basis. Inventories in our ALLETE Clean Energy segment and Corporate and Other businesses are carried at an average cost, first-in, first-out or specific identification basis.


Inventories – Net	September 30, 2022	December 31, 2021
Millions
Fuel (a)	$36.2	$18.7
Materials and Supplies	70.6	56.1
Renewable Energy Facilities Under Development (b)	365.4	22.9



Total Inventories – Net	$472.2	$97.7

(b) Renewable Energy Facilities Under Development consists primarily of project costs related to ALLETE Clean Energy’s Northern Wind, Rock Aetna, and Red Barn wind projects which are expected to be sold in late 2022 and early 2023, respectively. (See Other Current Liabilities.)


Other Non-Current Assets	September 30, 2022	December 31, 2021
Millions
Contract Assets (a)	$21.5	$23.3

Operating Lease Right-of-use Assets	13.9	16.4
ALLETE Properties	17.6	19.4
Restricted Cash	2.3	2.3
Other Postretirement Benefit Plans	66.5	64.8
Other	79.8	86.7
Total Other Non-Current Assets	$201.6	$212.9

(a) Contract Assets consist of 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.


Other Current Liabilities	September 30, 2022	December 31, 2021
Millions

Customer Deposits (a)	$111.7	$27.2
PSAs	6.1	12.6



Manufactured Gas Plant (b)	17.8	12.8
Fuel Adjustment Clause	—	5.0
Operating Lease Liabilities	3.7	4.8
Redeemable Non-Controlling Interest (c)	—	30.6
Other	49.2	40.0
Total Other Current Liabilities	$188.5	$133.0

(a) Primarily related to deposits received by ALLETE Clean Energy for the Northern Wind, Rock Aetna and Red Barn wind projects which are expected to be sold in late 2022 and early 2023, respectively. (See Inventories – Net.)

(b) The manufactured gas plant represents the current liability for remediation of a former manufactured gas plant site located in Superior, Wisconsin, and formerly operated by SWL&P.

(c) Amount reclassified from Non-Controlling Interest in Subsidiaries resulting from the exercise of an option to buy out a non-controlling interest, which was paid in the first quarter of 2022.


Other Non-Current Liabilities	September 30, 2022	December 31, 2021
Millions
Asset Retirement Obligation (a)	$197.2	$184.5
PSAs	28.4	39.5

Manufactured Gas Plant (b)	0.2	5.2
Operating Lease Liabilities	10.0	11.6
Other	33.0	40.0
Total Other Non-Current Liabilities	$268.8	$280.8

(a)The asset retirement obligation is primarily related to our Regulated Operations and is funded through customer rates over the life of the related assets. Additionally, BNI Energy funds its obligation through its cost-plus coal supply agreements for which BNI Energy has recorded a receivable of $28.5 million in Other Non-Current Assets on the Consolidated Balance Sheet as of September 30, 2022, ($28.5 million as of December 31, 2021).

(b)The manufactured gas plant represents the non-current liability for remediation of a former manufactured gas plant site located in Superior, Wisconsin, and formerly operated by SWL&P.


	Quarter Ended		Nine Months Ended
	September 30,		September 30,
Other Income	2022	2021	2022	2021
Millions
Pension and Other Postretirement Benefit Plan Non-Service Credits (a)	$1.9	$1.6	$7.2	$4.4
Interest and Investment Income (Loss)	(0.4)	(0.1)	(1.3)	1.7
AFUDC - Equity	0.7	0.6	2.4	1.7
PSA Liability (b)	—	—	10.2	—
Other	0.1	(1.1)	(2.1)	(1.7)
Total Other Income	$2.3	$1.0	$16.4	$6.1

(a)These are components of net periodic pension and other postretirement benefit cost other than service cost. (See Note 10. Pension and Other Postretirement Benefit Plans.)

(b)The gain on removal of the PSA liability for the Northern Wind project upon decommissioning of the legacy wind energy facility assets, which was fully offset by a reserve for an anticipated loss on the sale of the Northern Wind project.


Nine Months Ended September 30,	2022	2021
Millions
Cash Paid for Interest – Net of Amounts Capitalized	$60.5	$54.9

Noncash Investing and Financing Activities

Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment	$2.4	$(12.1)
Reclassification of Property, Plant and Equipment to Inventory (a)	$99.8	—
Capitalized Asset Retirement Costs	$9.0	$3.5
AFUDC–Equity	$2.4	$1.7

(a)The decommissioning of the existing Northern Wind assets resulted in a reclassification from Property, Plant and Equipment – Net to Inventories – Net in the second quarter of 2022 as they are being sold to a subsidiary of Xcel Energy Inc. In the third quarter of 2022, safe harbor equipment was transferred to the project entity resulting in an additional reclassification from Property, Plant and Equipment - Net to Inventories - Net.

Non-Controlling Interest in Subsidiaries. Non-controlling interest in subsidiaries on the Consolidated Balance Sheet and net loss attributable to non-controlling interest on the Consolidated Statement of Income represent the portion of equity ownership and earnings, respectively, of subsidiaries that are not attributable to equity holders of ALLETE. These amounts are primarily related to the tax equity financing structures for ALLETE Clean Energy’s 106 MW Glen Ullin, 80 MW South Peak, 303 MW Diamond Spring and 303 MW Caddo wind energy facilities as well as ALLETE’s equity investment in the 250 MW Nobles 2 wind energy facility.