Allete Inc Stock Price, News & Analysis

ALLETE (NYSE: ALE) has announced the promotion of Jeff Scissons to Chief Financial Officer, succeeding Steven W. Morris who plans to retire in July. Scissons, who joined ALLETE in 2013, was recently promoted to Vice President and Corporate Treasurer in 2024.

Throughout his tenure, Scissons has led key strategic initiatives including the acquisition of New Energy Equity and the divestiture of U.S. Water. He currently leads the transition committee for ALLETE's acquisition by Canada Pension Plan Investments Board (CPPIB) and Global Infrastructure Fund (GIP).

Prior to joining ALLETE, Scissons spent 12 years at Northern Asset Management in Duluth. His roles at ALLETE included financial analyst, manager of financial planning and analysis, assistant treasurer, and ALLETE Clean Energy's chief financial and strategy officer.

New Energy Equity (NEE) has partnered with Harlem Consolidated School District to develop a 5.54 MWdc solar energy project in Illinois. The project, originally developed by BOW Renewables and acquired by NEE, will be built on school district-owned land in eastern Winnebago County.

The initiative, NEE's first in Illinois' Public Schools Program under the Adjustable Block Program (ABP), will provide discounted electricity to both the school district, supporting over 39,000 students across 11 schools, and residential customers in the Commonwealth Edison service area.

This project adds to NEE's existing portfolio of more than 30 community solar projects totaling over 90 MWdc in Illinois. The initiative aims to advance clean energy adoption in educational settings while supporting Illinois' renewable energy goals through community-driven energy solutions.

ALLETE (NYSE: ALE) reported 2024 earnings of $3.10 per share on net income of $179.3 million and operating revenue of $1.5 billion, compared to $4.30 per share on net income of $247.1 million and revenue of $1.9 billion in 2023.

The 2024 results include approximately 39 cents per share in transaction expenses related to the merger agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners. Earnings were positively impacted by interim rates implementation at Minnesota Power, while being affected by a forced outage at ALLETE Clean Energy's Caddo facility.

The company's Regulated Operations segment recorded net income of $160.9 million in 2024, up from $147.2 million in 2023. ALLETE Clean Energy's net income decreased to $17.8 million in 2024 from $71.7 million in 2023. Corporate and Other businesses recorded net income of $0.6 million in 2024, down from $28.2 million in 2023.

ALLETE (NYSE:ALE) has announced a 3.5% increase in its quarterly dividend to $0.73 per share, equivalent to $2.92 annually. The dividend will be payable on March 1 to shareholders of record as of February 14, 2025.

This increase marks over 75 consecutive years of dividend payments by ALLETE, demonstrating the company's commitment to shareholder returns. CEO Bethany Owen expressed confidence in ALLETE's growth outlook, citing it as a factor in the board's decision to raise the dividend.

ALLETE operates through various subsidiaries including Minnesota Power, Superior Water, Light and Power of Wisconsin, ALLETE Clean Energy, BNI Energy, and New Energy Equity, with an additional 8% equity stake in American Transmission Co.

ALLETE (NYSE: ALE) announced that Chief Financial Officer Steven W. Morris will retire in July 2024 after nearly 25 years with the company. Morris, 63, joined ALLETE in 2001 and was promoted to Senior Vice President and CFO in February 2022. During his tenure, he held various strategic roles including manager of financial reporting, director of internal audit, director of accounting, and controller.

The retirement comes amid ALLETE's pending acquisition by CPP Investments and GIP, who will acquire all outstanding shares for $67 per share in cash ($6.2 billion including debt). The company expects to complete the transaction in mid-2025, subject to regulatory approvals. Post-acquisition, ALLETE will maintain local management and operations, with its utilities continuing to be regulated by relevant state commissions. The acquisition is not expected to impact utility customer rates.

CEO Bethany Owen has initiated the process to identify a new CFO, with an announcement expected later in the first quarter.

ALLETE (NYSE: ALE) has received Federal Energy Regulatory Commission (FERC) approval for its proposed acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). The transaction, valued at $6.2 billion ($67 per share in cash), includes debt assumption and is expected to close in mid-2025.

Post-acquisition, ALLETE will maintain local management and operations. Its utilities, Minnesota Power and SWL&P, will continue under existing regulatory oversight. The deal is not expected to impact utility customer rates but remains subject to additional regulatory approvals and closing conditions.

NorthWestern Energy (Nasdaq: NWE) has announced participation in major transmission projects to expand Montana's grid capacity. The company has signed a memorandum of understanding to acquire 10% (300 megawatts) of the North Plains Connector, a 3,000-megawatt, 420-mile high-voltage direct current transmission line connecting Bismarck, North Dakota, and Colstrip, Montana.

The project, developed by Grid United and ALLETE, is expected to begin construction in 2028 and become operational by 2032. The North Plains Connector will be the first interregional transmission line connecting three energy markets: MISO, SPP, and WECC. Additionally, NorthWestern Energy has entered a letter of intent with Grid United to develop transmission infrastructure in Montana's southwest corridor, enhancing connectivity with Western energy markets.

ALLETE Clean Energy has secured new seven-year contracts for its Armenia Mountain Wind site's full output. The 100.5-megawatt facility, located near Troy, Pennsylvania, will split its output between two customers: Smartest Energy US (50%) and Old Dominion Energy Cooperative. The wind site, acquired in 2015, consists of 67 General Electric turbines and operates in the PJM electricity market. Old Dominion, one of the original customers since 2009, has chosen to renew its contract. This development strengthens ALLETE Clean Energy's position in the renewable energy sector, where it operates over 1,600 megawatts of wind capacity across eight states.

ALLETE (NYSE: ALE) reported Q3 2024 earnings of $0.78 per share on net income of $45.0 million, compared to $1.49 per share on net income of $85.9 million in Q3 2023. The decrease primarily reflects last year's $0.71 per share gain from a favorable arbitration ruling at ALLETE Clean Energy. Q3 2024 results include $0.07 per share in transaction expenses related to the merger agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners.

Key developments include shareholder approval of the merger in August, Minnesota Public Utilities Commission's approval of the 2023 rate case settlement, and plans for two large solar projects in northern Minnesota. New Energy Equity exceeded expectations with strong project sales, while ALLETE Clean Energy completed the sale of its 68-megawatt Whitetail project.