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Jul 13, 2005

Minnesota Power Asks For Legal Review Of New EPA Air Rule

Minnesota Power Asks For Legal Review Of New EPA Air Rule

July 13, 2005

DULUTH, Minn.--Minnesota Power, an operating division of Duluth-based ALLETE, Inc. (NYSE: ALE) today announced it has asked the U.S. Court of Appeals to review the present form of the EPA Clean Air Interstate Rule (CAIR), issued on March 10, 2005. Minnesota Power believes that there are significant deficiencies in the EPA's rulemaking which unfairly target Minnesota Power and will impact its customers.

CAIR seeks to reduce the interstate transport of fine particulate matter and ozone in 28 Eastern states and the District of Columbia by seeking cuts in utility sulfur dioxide (SO2) and oxides of nitrogen (NOx) emissions. The State of Minnesota was included in this grouping of states. Given Minnesota's good air quality and low utility emissions, Minnesota Power does not believe the State of Minnesota should have been included with the Eastern states.

"Minnesota Power is not challenging CAIR in order to avoid future emissions reductions," said Don Shippar, ALLETE President and CEO. "However, Minnesota Power believes that it is crucial that the State of Minnesota and our customers are treated fairly in this process."

The State of Minnesota is among the few states included in the CAIR that is in compliance with all National Ambient Air Quality Standards for both fine particles and ozone. The company believes the CAIR contains incorrect emission contributions and generating unit operation information. The inclusion of Minnesota in CAIR would increase Minnesota Power's costs significantly with little environmental benefit.

ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE provides energy services in the upper Midwest and has significant real estate holdings in Florida. More information about the company is available on ALLETE's Web site at www.allete.com.

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.

Contact:
Eric Olson
218-723-3947
eolson@allete.com

Investor Contact:
Tim Thorp
218-723-3953
tthorp@allete.com