ALLETE’s Proposed Partnership with Canada Pension Plan Investment Board and Global Infrastructure Partners Gains Additional Support
Statewide clean energy advocates unite with local business, labor and community groups behind settlement agreement
DULUTH, Minn. - Center for Energy and Environment, Fresh Energy, Clean Grid Alliance, Clean Energy Economy Minnesota – statewide nonprofit organizations dedicated to helping cut carbon emissions – have joined a growing coalition of business, labor and community groups backing the proposed partnership between ALLETE (NYSE: ALE) (the “Company”) and Canada Pension Plan Investment Board (“CPP Investments”) and Global Infrastructure Partners (“GIP”) following last month’s landmark settlement agreement with the Minnesota Department of Commerce.
“Clean energy groups, businesses, organized labor, communities and the Minnesota Department of Commerce all agree that our proposed business partnership serves the public interest,” said ALLETE Chair, President, and CEO Bethany Owen. “Many have highlighted how the proposed partnership provides the financial strength and scale to make the clean energy investments needed to meet our state’s carbon-free energy goals while keeping bills as low as possible for all our customers. We are confident that the transaction with CPP Investments and GIP will create a stronger foundation for Minnesota Power's future that benefits our customers, employees, and communities for generations to come.”
In comments filed Monday, Aug. 4 with the Minnesota Public Utilities Commission, the Center for Energy and Environment stated the acquisition is consistent with the public interest: “The Acquisition with the Settlement provides the necessary capital needed for Minnesota Power to continue its progress towards meeting the [Carbon Free Standard], while protecting ratepayers and investing in clean energy jobs that diversify northeast Minnesota’s economy, under the full regulatory authority of the Commission.”
The Salvation Army and EnergyCENTS Coalition also submitted comments in favor of the new residential customer arrearage forgiveness program, which will be established to support eligible low-income customers in Minnesota Power’s service territory if the transaction is approved.
The diverse coalition supporting the proposed partnership now includes:
- EnergyCENTS Coalition
- The Salvation Army
- Fresh Energy
- The Center for Energy and Environment
- Clean Grid Alliance
- Clean Energy Economy Minnesota
- Minnesota Chamber of Commerce
- The Duluth, Hermantown, Grand Rapids and Little Falls Chambers of Commerce
- Minnesota State Building and Construction Trades Council
- The International Brotherhood of Electrical Workers (IBEW) Local 31
- The Laborers' International Union of Minnesota & North Dakota
- The International Union of Operating Engineers Local 49
- The North Central States Regional Council of Carpenters
The Minnesota Department of Commerce, which is charged with advocating for the public interest in utility matters, has also stated that it believes the transaction between GIP, CPP Investments and ALLETE is consistent with the public interest and recommended that the Minnesota Public Utilities Commission (MPUC) approve the acquisition.
Additional excerpts of comments filed in support of the settlement agreement include:
Fresh Energy and Clean Grid Alliance: “We support adoption of the Proposed Settlement because we believe its approval is the outcome with the most clean energy benefit and assurances towards achieving Minnesota’s greenhouse gas reduction goals.”
International Brotherhood of Electrical Workers (IBEW) Local 31: “We believe the record demonstrates that the potential for long-term financial stability and responsible infrastructure investment under the proposed transaction outweighs the generalized and unproven risks cited in opposition. With the thoughtful stipulations secured by the Department of Commerce, including enforceable reporting and oversight mechanisms that prioritize labor stability and accountability, we support the transaction’s approval as structured.”
Minnesota State Building and Construction Trades Council: “The agreement between [the] ALLETE, investors and DoC improves greatly upon a transaction that already advanced the public interest, turning a home run into a Grand Slam. The settlement includes more than a dozen significant concessions on the part of ALLETE and investors, including a reduction in the utility’s Return on Equity, a one-year moratorium on rate increases, new service quality penalties, the addition of independent directors to ALLETE’s board, strict limits on the ability of investors to issue dividends, and a $50 million investor-paid clean energy advancement fund. These terms represent substantial public benefits and they should resolve any remaining concern that ownership by private infrastructure funds could somehow destabilize Minnesota Power’s finances or undermine the Commission’s ability to oversee and regulate the utility’s operations.”
Chambers of Commerce for Duluth, Grand Rapids, Hermantown and Little Falls: “Access to new capital is a pivotal cornerstone of ALLETE's ability to transition to clean energy while maintaining affordable rates and reliable service. Partnerships with experienced investors like CPP and GIP provide the financial resources, strategic expertise, and long-term alignment needed to meet these challenges. Furthermore, the return on investment required by capital providers is a reasonable and essential part of this equation, ensuring that ALLETE can continue to attract the funding necessary to serve its customers and communities.
This partnership represents an opportunity to advance ALLETE's leadership in clean energy, benefiting both the environment and the economic well-being of the communities it serves. Ensuring access to capital today secures a sustainable and prosperous energy future for tomorrow.”
Energy CENTS Coalition: “This is a powerful opportunity to draw shareholders into the work of funding and sustaining arrearage relief and CARE affordability benefits for Minnesota Power customers. For those receiving this arrearage forgiveness, it may very well mean a lessened need to choose between medicine, food and utilities. These are working families across the Company’s service territory who are still clawing their way out of a once-in-a-generation cost of living crisis with even more uncertainty on the horizon.”
The Salvation Army: “We believe additional resources, like the contribution described in the proposed settlement agreement, would help low-income people in our communities pay for essential utility services and give some much-needed relief as they try to balance limited budgets to meet their everyday needs. We submit these comments in support of the proposed financial contribution by the partners and would gladly assist with outreach to raise awareness about this additional resource.”
On July 11, 2025, ALLETE announced that the Company, CPP Investments and GIP reached an agreement with the Minnesota Department of Commerce that will deliver immediate benefits to customers through guaranteed cost savings via a one-year customer rate base freeze and a reduced return on equity, while guaranteeing access to capital to fund the state’s clean energy transition following the approval and completion of the proposed transaction. The agreement also introduces enforceable service quality and system reliability performance metrics to guarantee customers continue to receive the same high levels of reliability and quality they expect from Minnesota Power.
ALLETE continues to expect the proposed transaction to close in 2025 subject to approval by the Minnesota Public Utilities Commission and other customary closing conditions. The settlement agreement has been submitted to the MPUC for consideration as part of its overall review of the acquisition. The transaction has achieved all other required approvals, including from ALLETE shareholders, the Federal Energy Regulatory Commission and the Public Service Commission of Wisconsin.
About Minnesota Power
Minnesota Power provides electric service within a 26,000-square-mile area in northeastern
Minnesota, supporting comfort, security and quality of life for 150,000 customers, 14 municipalities
and some of the largest industrial customers in the United States. More information can be found at www.mnpower.com.
About ALLETE, Inc.
ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, Minnesota; BNI Energy in Bismarck, North Dakota; and New Energy Equity, headquartered in Annapolis, Maryland; and has an 8% equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP
ALLETE calculates and reports carbon emissions based on the GHG Protocol. Details in ALLETE’s Corporate Sustainability Report.
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.