UNITED
STATES
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) – May 13, 2008
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
On May
13, 2008, the Company announced a long term project to accelerate wind energy
and cut back carbon. The Company proposes to purchase a major transmission line
from North Dakota, phase out a long-term contract to buy coal-based electricity,
and add several hundred megawatts of wind generation. The proposed project
is subject to the execution of definitive agreements and applicable regulatory
approval.
A copy of
Minnesota Power’s May 13, 2008, press release announcing the proposed project 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 May 13, 2008, stating Minnesota Power
announces long term project to accelerate wind energy and cut back
carbon.
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 Minnesota Power
Long Term Project May 13, 2008
1
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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weather
conditions;
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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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unanticipated
project delays or changes in project costs;
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availability
of construction materials and skilled construction labor for capital
projects;
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unanticipated
changes in operating expenses and capital expenditures;
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global
and domestic economic conditions;
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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 2007 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 Minnesota Power
Long Term Project May 13, 2008
2
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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May
13, 2008
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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 Minnesota Power
Long Term Project May 13, 2008
3
Exhibit
99
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For
Release:
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May
13, 2008
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News
Contact:
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Pat
Mullen
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218-723-3971
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pmullen@mnpower.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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NEWS
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Minnesota
Power announces long term project
to
accelerate wind energy and cut back carbon
In a
major move to accelerate its strategy of reducing carbon emissions and expanding
renewable wind energy development, Minnesota Power proposes to purchase a major
transmission line from North Dakota, phase out a long-term contract to buy
coal-based electricity, and add several hundred megawatts of wind
generation.
The key
element of this strategic project is Minnesota Power’s purchase of a direct
current (DC) transmission line that extends from the wind-rich plains of central
North Dakota to the Arrowhead Substation in Hermantown, Minn.
The
proposal calls for the DC line, now owned by Square Butte Electric Cooperative,
to be sold to Minnesota Power for approximately $80 million in early 2009. It is
now used to transmit electricity generated at the Milton R. Young Generating
Station in Center, N.D. 465 miles eastward for purchase by Minnesota
Power.
Direct
current is a more economical way to transmit power over long distances than the
standard AC, or alternating current, transmission line. The DC line being
purchased by Minnesota Power is a strategic and valuable transmission link
between the vast wind resource in North Dakota and electric consumers eager to
increase their reliance on renewable energy.
“Three
decades ago, the DC line was built to move low-cost coal-based electricity from
North Dakota to power the growing taconite industry in northeast Minnesota’s
Iron Range,” said Don Shippar, ALLETE CEO. “Back then, it was described as a way
to transport ‘coal by wire.’ Now we will use the line to transmit ‘wind by
wire’.”
Electricity
generated at the Young Station is presently shared by Minnesota Power and
Minnkota Power Cooperative, an affiliate of the Square Butte Cooperative. Over
the next several years, Minnesota Power will phase out its generation rights at
Young Unit 2. Minnkota will pursue new options for delivering power from the
Young Station to its primary customers in the Red River Valley.
Minnesota
Power plans to add several hundred megawatts of new wind generation near Center,
N.D., where the wind resources are considered among the best in the nation. This
wind-generated power will be transmitted over the DC line. The additional wind
generation will partially make up for the lost Young 2 power. It will also help
Minnesota Power achieve its carbon reduction goals and help meet the state of
Minnesota 25 percent renewable mandate.
The
project benefits Minnkota Power because the cooperative will be able to use the
electricity now purchased by Minnesota Power and delay the need for Minnkota to
construct additional generation facilities.
Minnesota
Power · 30 West
Superior Street, Duluth, Minnesota 55802
www.mnpower.com
"Our
power requirements projections indicate a need for additional baseload
generation, and the Young 2 addition would satisfy a large part of that need,"
said David Loer, Minnkota President & CEO. "Minnesota Power and Minnkota
have been partners since 1977, and we expect to continue working together on
future strategic issues."
“This
multi-year project responds to the increasing value of renewable energy and the
growing concern about carbon emissions,” Shippar added. “Our geographical
position allows us to use this DC transmission line for a new purpose -- moving
renewable energy to serve our customers.” The project does not
materially change the five-year capital expenditure forecast disclosed
previously by Minnesota Power.
“We value
our long-term partnership with Minnkota, which enables us to reconfigure the
assets to better meet our respective long-term needs,” Shippar said. “We look
forward to informing regulators and other stakeholders about this project and
engaging them in a dialogue that will lead to its timely
implementation.”
The
project is subject to the execution of definitive agreements and applicable
regulatory approvals.
Minnesota
Power, an ALLETE company, supplies electric service to 141,000 retail customers,
16 municipalities and some of the largest industrial customers in the United
States.
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