ALLETE Obtains Regulatory Approval from Minnesota Public Utilities Commission for Partnership with CPP Investments and Global Infrastructure Partners
Acquisition delivers pathway to help meet significant infrastructure demands of the clean-energy transition and approximately
With all necessary regulatory approvals now in place, transaction expected to close in late 2025
“We are grateful to the Minnesota Public Utilities Commission for their thorough review and approval of this important and strategic partnership, and recognition this is in the public interest,” said ALLETE Chair, President and CEO Bethany Owen. “Today’s decision caps a comprehensive public process and positions ALLETE well to meet the significant infrastructure demands of the clean-energy transition without compromising the high-quality service and commitments to reliability and affordability that define our company. We are excited for this next chapter at ALLETE alongside CPP Investments and GIP, who are aligned with our values and support our Sustainability-In-Action strategy and our talented team of employees.”
Owen continued, “I would like to thank the wide range of community leaders and organizations, including labor, business and clean-energy groups, and low-income customer advocates, for their strong support for this transaction and collaboration to reach the best possible outcome for all parties. We are pleased the final approval has resulted in approximately
“With this approval, ALLETE is now well-positioned to move forward toward its sustainable and clean-energy future. Together with GIP and the Company’s experienced management team, we look forward to supporting ALLETE as it seeks to enable the availability of reliable, affordable and increasingly sustainable electricity,” said Andrew Alley, Managing Director, Head of Infrastructure,
“Working together with our partners from CPP Investments, we are proud to support ALLETE and its talented leadership as the company begins its next chapter,” said Jonathan Bram, a Founding Partner of GIP. “We are committed to preserving ALLETE’s legacy of intense community focus as it continues to provide safe, reliable, and affordable energy which is increasingly carbon-free for Northeastern Minnesota.”
The final agreement, supported by the Minnesota Department of Commerce, clean-energy organizations, business leaders, labor unions, and advocates for low-income residents, includes historic customer, clean-energy, workforce, and governance commitments. These include:
Customer affordability and rates
- One-year base rate freeze to support rate stability for Minnesota Power customers.
-
$50 million -
A
$10 million -
ROE (Return on Equity) reduction from
9.78% to9.65% post close, immediately lowering costs for customers, and a future ROE cap of9.78% through December 31, 2030. -
Up to
$3.5 million - ALLETE, CPP Investments and GIP have agreed to enforceable service quality and system reliability performance metrics for Minnesota Power to guarantee customers continue to receive the high levels of reliability and quality they expect.
Clean energy and infrastructure
- Guaranteed access to capital to fund ALLETE’s five-year plan for advancing transmission and renewable energy goals.
-
$50 million
Local oversight and control
-
A majority independent board of directors, with several from
Minnesota andWisconsin , ensuring regional voices have a greater influence in utility decision-making. -
ALLETE headquarters will remain in
Duluth, Minnesota , with the current leadership team in place. - Commitment to retain ALLETE’s current workforce, honor union contracts and maintain compensation levels and benefits programs.
The transaction has also received approvals from ALLETE shareholders and federal and state agencies, including the Federal Energy Regulatory Commission and the Public Service Commission of
Additional information about ALLETE and this partnership can be found at ALLETEforward.com.
About ALLETE, Inc.
ALLETE, Inc. is an energy company headquartered in
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in
About Global Infrastructure Partners (GIP)
Global Infrastructure Partners (GIP), a part of BlackRock, is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. With energy pragmatism central to our investment thesis, we are well positioned to support the global energy transition.
GIP’s scaled platform has over
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251003972441/en/
ALLETE Contact
Amy
Director - Corporate Communications
218-723-7400
arutledge@allete.com
CPP Investments Contact:
Frank Switzer
Public Affairs & Communications
Tel: +1 416-523-8039
fswitzer@cppib.com
Global Infrastructure Partners (GIP) Contact:
Mustafa Riffat
Managing Director & Global Head of Communications
mustafa.riffat@global-infra.com
Source: ALLETE, Inc.
