Allete Inc Stock Price, News & Analysis

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.

ALLETE Clean Energy, a subsidiary of ALLETE, Inc. (NYSE: ALE), has sold its Whitetail wind project in Wisconsin to Invenergy. The project will ultimately be owned by WEC Energy Group utilities and Madison Gas and Electric Co. The approximately 70-megawatt project, spanning 5,938 acres in Grant County, will feature up to 21 turbines capable of powering tens of thousands of homes. Invenergy will handle development, construction, and long-term operations. This follows ALLETE Clean Energy's 2023 sale of the adjacent Red Barn wind project. The company currently operates over 1,200 megawatts of wind energy generation across seven states.

ALLETE's (NYSE:ALE) board of directors has declared a quarterly dividend of 70.5 cents per share of common stock, maintaining an annual dividend rate of $2.82 per share. The dividend will be paid on December 1 to shareholders of record as of November 15, 2024. ALLETE is an energy company based in Duluth, Minnesota, operating through multiple subsidiaries including Minnesota Power, Superior Water, Light and Power of Wisconsin, ALLETE Clean Energy, BNI Energy, and New Energy Equity, with an 8% stake in American Transmission Co.

Minnesota Power, a division of ALLETE Inc. (NYSE: ALE), received approval from the Minnesota Public Utilities Commission for its 2024 electric rate settlement agreement. The approved final rate increase is 4.9% for residential and small business customers (about $5 monthly for average residential customers) and 4.4% for industrial and large commercial customers. This is lower than the interim 8.6% rate increase implemented in January, resulting in customer refunds through a one-time bill credit in early 2025. The commission set Minnesota Power's return on equity at 9.78%.

New Energy Equity has successfully completed 14 Public Storage solar projects across Minnesota, marking a significant step in Public Storage's commitment to install solar on over 1,300 properties by 2025. The projects represent a combined installed capacity of 2.28 MW, including a 0.35MW solar array at the Como St. Paul facility, which is the second largest rooftop solar array in Public Storage's national solar portfolio.

These 14 rooftop projects are expected to generate approximately 2,750 MWh of electricity annually, equivalent to powering 379 homes for one year. The successful completion demonstrates New Energy Equity's dedication to delivering high-quality renewable energy solutions to commercial and industrial clients, contributing to a cleaner grid and providing long-term economic benefits to Public Storage.