SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of
Report (Date of Earliest Event Reported) – December 31, 2007
(December 28, 2007)
ALLETE,
Inc.
(Exact
name of registrant as specified in its charter)
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Minnesota
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1-3548
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41-0418150
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(State
or other jurisdiction of
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(Commission
File Number)
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(IRS
Employer
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incorporation
or organization)
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Identification
No.)
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30
West Superior Street
Duluth,
Minnesota 55802-2093
(Address
of principal executive offices, including zip code)
(218)
279-5000
(Registrant’s
telephone number, including area code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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SECTION
8 – OTHER EVENTS
Item
8.01 Other Events
Minnesota
Power, an operating division of ALLETE, Inc., submitted a filing with the
Federal Energy Regulatory Commission on Friday, December 28, 2007, seeking
to
increase electric rates for its wholesale customers. This request
applies only to Minnesota Power’s 16 wholesale municipal customers and two
private utilities in Wisconsin, including Superior Water, Light & Power
(SWL&P), a wholly-owned subsidiary of ALLETE, Inc. The filing
seeks a 10% rate increase for wholesale municipal customers, a 12.5% increase
for SWL&P and an overall return on equity of 11.25%. On an annualized basis,
the filing would generate approximately $7.5 million in additional
revenue.
A
copy of
Minnesota Power’s December 31, 2007, press release announcing the rate increase
is being furnished with the Securities and Exchange Commission as exhibit
99.
SECTION
9 – FINANCIAL STATEMENTS AND EXHIBITS
Item
9.01 Financial Statements and Exhibits
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(a)
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Financial
Statements of Business Acquired – Not applicable
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(b)
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Pro
Forma Financial Information – Not applicable
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(c)
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Shell
Company Transactions – Not applicable
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(d)
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Exhibits
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Exhibit
Number
99
-Minnesota Power News Release dated December 31, 2007, stating Minnesota Power
filed a wholesale rate adjustment request with the Federal Energy Regulatory
Commission.
Readers
are cautioned that forward-looking statements should be read in conjunction
with
ALLETE’s disclosures under the heading: “SAFE HARBOR STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995” located on page 3 of this Form
8-K.
ALLETE,
Inc. Form
8-K FERC Wholesale Rate Case December 31, 2007
2
Safe
Harbor Statement
Under
the Private Securities Litigation Reform Act of 1995
In
connection with the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, we are hereby filing cautionary statements identifying
important factors that could cause our actual results to differ materially
from
those projected in forward-looking statements (as such term is defined in the
Private Securities Litigation Reform Act of 1995) made by or on behalf of ALLETE
in this Current Report on Form 8-K, in presentations, in response to questions
or otherwise. Any statements that express, or involve discussions as to
expectations, beliefs, plans, objectives, assumptions, or future events or
performance (often, but not always, through the use of words or phrases such
as
“anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,”
“projects,” “will likely result,” “will continue,” “could,” “may,” “potential,”
“target,” “outlook” or similar expressions) are not statements of historical
facts and may be forward-looking.
Forward-looking
statements involve estimates, assumptions, risks and uncertainties, which are
beyond our control and may cause actual results or outcomes to differ materially
from those that may be projected. These statements are qualified in their
entirety by reference to, and are accompanied by, the following important
factors, in addition to any assumptions and other factors referred to
specifically:
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·
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our
ability to successfully implement our strategic
objectives;
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·
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our
ability to manage expansion and integrate acquisitions;
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·
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prevailing
governmental policies, regulatory actions, and legislation including
those
of the United States Congress, state legislatures, the FERC, the
MPUC, the
PSCW, and various local and county regulators, and city administrators,
about allowed rates of return, financings, industry and rate structure,
acquisition and disposal of assets and facilities, real estate
development, operation and construction of plant facilities, recovery
of
purchased power and capital investments, present or prospective wholesale
and retail competition (including but not limited to transmission
costs),
zoning and permitting of land held for resale and environmental
regulation;
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·
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effects
of restructuring initiatives in the electric industry;
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·
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economic
and geographic factors, including political and economic
risks;
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·
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changes
in and compliance with laws and policies;
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·
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weather
conditions;
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·
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natural
disasters and pandemic diseases;
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·
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war
and acts of terrorism;
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·
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wholesale
power market conditions;
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·
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population
growth rates and demographic patterns;
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·
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effects
of competition, including competition for retail and wholesale
customers;
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·
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changes
in the real estate market;
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·
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pricing
and transportation of commodities;
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·
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changes
in tax rates or policies or in rates of inflation;
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·
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unanticipated
project delays or changes in project costs;
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·
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availability
of construction materials and skilled construction labor for capital
projects;
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·
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unanticipated
changes in operating expenses and capital expenditures;
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·
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global
and domestic economic conditions;
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·
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our
ability to access capital markets and bank financing;
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·
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changes
in interest rates and the performance of the financial
markets;
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·
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our
ability to replace a mature workforce and retain qualified, skilled
and
experienced personnel; and
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·
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the
outcome of legal and administrative proceedings (whether civil or
criminal) and settlements that affect the business and profitability
of
ALLETE.
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Additional
disclosures regarding factors that could cause our results and performance
to
differ from results or performance anticipated by this report are discussed
in
Item 1A under the heading “Risk Factors” in Part I of our 2006 Form 10-K.
Any forward-looking statement speaks only as of the date on which such statement
is made, and we undertake no obligation to update any forward-looking statement
to reflect events or circumstances after the date on which that statement is
made or to reflect the occurrence of unanticipated events. New factors emerge
from time to time, and it is not possible for management to predict all of
these
factors, nor can it assess the impact of each of these factors on the businesses
of ALLETE or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in any
forward-looking statement. Readers are urged to carefully review and consider
the various disclosures made by us in this Form 8-K and in our other reports
filed with the SEC that attempt to advise interested parties of the factors
that
may affect our business.
ALLETE,
Inc. Form 8-K FERC Wholesale Rate Case December 31,
2007
3
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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ALLETE,
Inc.
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December
31, 2007
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/s/
Steven Q. DeVinck
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Steven
Q. DeVinck
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Controller
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ALLETE,
Inc. Form 8-K FERC Wholesale Rate Case
December 31, 2007
4
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Exhibit
99
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For
Release:
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Dec.
31, 2007
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Contact:
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Eric
Olson
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218-723-3947
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eolson@allete.com
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Investor
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Tim
Thorp
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Contact:
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218-723-3953
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tthorp@allete.com
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MINNESOTA
POWER REQUESTS WHOLESALE CUSTOMER RATE INCREASE
DULUTH,
Minn.— On December 28, 2007 Minnesota Power, an ALLETE company (NYSE: ALE),
filed a rate adjustment request with the Federal Energy Regulatory Commission
(FERC) seeking an increase in the electric rates of its wholesale customers.
Minnesota Power has not asked for a wholesale rate adjustment since
1995.
This
request applies only to Minnesota Power’s 16 municipal customers and two private
utilities in Wisconsin, including Superior Water, Light & Power Company. The
requested increase is approximately 10% for municipal customers and
approximately 12.5% for Superior Water, Light & Power Company.
Minnesota
Power anticipates the rate adjustment will result in an annual revenue increase
of approximately $7.5 million. Minnesota Power has asked FERC for interim rates
to take effect by March 1, 2008 and expects FERC approval of final rates by
late
2008 or early 2009.
“This
rate adjustment would acknowledge our increased costs of providing service
to
wholesale customers, including general operation and maintenance expenses,
while
integrating environmental compliance, renewable generation, and transmission
asset additions,” said Don Shippar, ALLETE Chairman, President and
CEO.
Wholesale
customers are the communities within the Minnesota Power service area who
distribute electric service to their residents, and the Wisconsin private
utilities. Retail customers of Minnesota Power who receive their bill directly
from the company are not included in this rate request.
“The
rates paid for Minnesota Power electric service—by both wholesale and retail
customers—have historically been among the lowest in the United States,” Shippar
added. “We do not anticipate this changing as a result of this proposed rate
adjustment.”
Minnesota
Power provides electricity in a 26,000-square-mile electric service territory
located in northeastern Minnesota. Minnesota Power supplies retail electric
service to 141,000 customers, wholesale electric service to 16 municipalities,
and some of the largest industrial customers in the United States. More
information can be found at: www.mnpower.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.
###
Minnesota
Power • 30 West Superior Street, Duluth, Minnesota 55802
www.mnpower.com