Subsequent Events. The Company performed an evaluation of subsequent events for potential recognition and disclosure through the date of the financial statements issuance.

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, 2023, restricted cash amounts included in Prepayments and Other on the Consolidated Balance Sheet include collateral deposits required under an ALLETE Clean Energy loan. 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, 2023	December 31, 2022	September 30, 2022	December 31, 2021
Millions
Cash and Cash Equivalents	$125.5	$36.4	$42.1	$45.1
Restricted Cash included in Prepayments and Other	3.3	1.5	4.2	0.3
Restricted Cash included in Other Non-Current Assets	2.4	2.3	2.3	2.3
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows	$131.2	$40.2	$48.6	$47.7

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, 2023	December 31, 2022
Millions
Fuel (a)	$33.0	$33.4
Materials and Supplies	115.4	75.1
Renewable Energy Facilities Under Development (b)	31.9	347.4



Total Inventories – Net	$180.3	$455.9

(b) Renewable Energy Facilities Under Development as of September 30, 2023, consists primarily of project costs related to renewable energy development projects at New Energy. As of December 31, 2022, it consisted primarily of project costs related to ALLETE Clean Energy’s Northern Wind and Red Barn wind projects sold in the first quarter of 2023 and second quarter of 2023, respectively. (See Other Current Liabilities.)

Goodwill. The aggregate carrying amount of goodwill was $154.9 million as of September 30, 2023 ($154.9 million as of December 31, 2022). There have been no changes to goodwill by reportable segment for the quarter and nine months ended September 30, 2023.


Other Non-Current Assets	September 30, 2023	December 31, 2022
Millions
Contract Assets (a)	$19.1	$21.0

Operating Lease Right-of-use Assets	11.6	12.7
Finance Lease Right-of-use Assets	2.1	—
ALLETE Properties	19.4	19.1
Restricted Cash	2.4	2.3
Other Postretirement Benefit Plans	60.2	58.8
Other	101.5	90.4
Total Other Non-Current Assets	$216.3	$204.3

(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, 2023	December 31, 2022
Millions

Customer Deposits (a)	$6.0	$150.7
PSAs	6.0	6.1

Provision for Interim Rate Refund	39.4	18.4

Manufactured Gas Plant (b)	3.4	14.7

Operating Lease Liabilities	3.0	3.2

Finance Lease Liabilities	0.4	—
Other	52.3	57.9
Total Other Current Liabilities	$110.5	$251.0

(a) Customer Deposits as of December 31, 2022, primarily related to deposits received by ALLETE Clean Energy for the Northern Wind and Red Barn wind projects sold in the first quarter of 2023 and second quarter of 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.


Other Non-Current Liabilities	September 30, 2023	December 31, 2022
Millions
Asset Retirement Obligation (a)	$200.8	$200.4
PSAs	22.4	26.9


Operating Lease Liabilities	8.5	9.3
Finance Lease Liabilities	1.7	—
Other	30.4	32.4
Total Other Non-Current Liabilities	$263.8	$269.0

(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 $32.4 million in Other Non-Current Assets on the Consolidated Balance Sheet as of September 30, 2023 ($32.4 million as of December 31, 2022).


	Quarter Ended		Nine Months Ended
	September 30,		September 30,
Other Income	2023	2022	2023	2022
Millions
Pension and Other Postretirement Benefit Plan Non-Service Credits (a)	$1.8	$1.9	$5.5	$7.2
Interest and Investment Income (b)	6.6	(0.4)	8.7	(1.3)
AFUDC - Equity	1.1	0.7	2.5	2.4
PSA Liability (c)	—	—	—	10.2
Gain on Arbitration Award (d)	58.4	—	58.4	—
Other	0.8	0.1	0.2	(2.1)
Total Other Income	$68.7	$2.3	$75.3	$16.4

(a)These are components of net periodic pension and other postretirement benefit cost other than service cost. (See Note 9. Pension and Other Postretirement Benefit Plans.)

(b)Interest and Investment Income for the quarter and nine months ended September 30, 2023, reflects $5.1 million of interest income related to interest awarded as part of an arbitration ruling involving a subsidiary of ALLETE Clean Energy. (See Note 6. Commitments, Guarantees, and Contingencies.)

(c)The gain on removal of the PSA liability for the Northern Wind project upon decommissioning of the legacy wind energy facility assets, which was more than offset by a reserve for an anticipated loss on the sale of the Northern Wind project that was recorded in Cost of Sales - Non-Utility on the Consolidated Statement of Income.

(d)This reflects a gain recognized for the favorable outcome of an arbitration ruling involving a subsidiary of ALLETE Clean Energy. (See Note 6. Commitments, Guarantees, and Contingencies.)


Nine Months Ended September 30,	2023	2022
Millions
Cash Paid for Interest – Net of Amounts Capitalized	$64.8	$60.5
Cash Paid for Income Taxes – Net	$14.1	$1.1
Noncash Investing and Financing Activities

Increase in Accounts Payable for Capital Additions to Property, Plant and Equipment	$11.8	$2.4
Reclassification of Property, Plant and Equipment to Inventory (a)	—	$99.8
Capitalized Asset Retirement Costs	$2.4	$9.0
AFUDC–Equity	$2.5	$2.4

(a)The decommissioning of the legacy Northern Wind assets resulted in a reclassification from Property, Plant and Equipment – Net to Inventories – Net in the second quarter of 2022 as they were repowered and subsequently sold to a subsidiary of Xcel Energy Inc.

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.

In the third quarter of 2023, we recognized a $5.7 million increase in Net Loss Attributable to Non-Controlling Interest on the Consolidated Statement of Income for the correction of an error related to the calculation of non-controlling interest in subsidiaries under the hypothetical liquidation at book value method, of which $3.6 million related to 2022. We have evaluated the effect of this out-of-period adjustment on the quarter and nine months ended September 30, 2023, as well as on the previous interim and annual periods in which they should have been recognized and concluded that this adjustment is not material to any of the periods affected.