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ALLETE, Inc. (NYSE: ALE) is a diversified energy company headquartered in Duluth, Minnesota. The company primarily operates through two segments: Regulated Operations and ALLETE Clean Energy. The Regulated Operations segment includes Minnesota Power, which provides electricity to customers in northeastern Minnesota, and Superior Water, Light and Power (SWL&P) in Wisconsin. Additionally, ALLETE holds an equity interest in American Transmission Company (ATC), which manages electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois.
ALLETE Clean Energy is dedicated to developing and managing clean and renewable energy projects. The subsidiary focuses on wind and solar power generation, contributing to a sustainable energy future. The company has successfully developed over 500MW of solar projects and has closed more than $1.2 billion in clean energy investments. Notable projects include the Red Barn Wind Project and the Diamond Springs Wind Energy Facility, which are crucial to ALLETE's strategy for a diversified and sustainable energy portfolio.
ALLETE's commitment to clean energy is further highlighted by its recent contributions through New Energy Equity, which donated $200,000 to Folds of Honor for educational scholarships. Additionally, ALLETE is working on the North Plains Connector, a transformative 415-mile HVDC transmission line that will bolster reliability by linking three major U.S. electric markets.
Financially, ALLETE recorded a robust performance in 2023 with earnings of $4.30 per share on net income of $247.1 million and operating revenue of $1.9 billion. The company continues to invest in renewable energy and transmission projects, reflecting a significant growth potential and a commitment to sustainability. ALLETE is also adjusting its five-year capital expenditure plan to $4.3 billion, focusing on regulated renewables and transmission projects to meet state carbon-free energy goals by 2040.
ALLETE's strategic initiatives and partnerships are designed to ensure long-term growth and stability. The company is guided by its 'Sustainability in Action' strategy, aiming to provide cost-effective, reliable, and environmentally friendly energy solutions to its customers.
Portland General Electric (PGE) has signed a non-binding memorandum of understanding with Grid United and ALLETE for the development of the North Plains Connector, a 415-mile high-voltage direct-current (HVDC) transmission line. This line will connect Bismarck, North Dakota, and Colstrip, Montana, and double the transfer capacity between the eastern and western U.S. electric grids. PGE is expected to hold a 20% ownership share and gain 600 megawatts of transfer capacity. The project aims to provide access to renewable energy, reduce congestion, and enhance wholesale markets. The estimated $3.2 billion investment will create over 600 jobs during construction.
ALLETE, Inc. reported first quarter 2024 earnings of 88 cents per share on net income of $50.7 million, compared to $1.02 per share on net income of $58.2 million in the previous year. Factors affecting earnings included rate case settlement reserves, warmer weather impact, and transaction expenses related to a merger. While ALLETE's Regulated Operations segment saw increased net income, ALLETE Clean Energy and Corporate and Other businesses experienced decreases. ALLETE's CFO noted unexpected impacts on 2024 results, including weather effects and rate case settlement reserves.
ALLETE, Inc. is set to be acquired by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners for $67.00 per share in cash, totaling $6.2 billion. The agreement aims to advance ALLETE's 'Sustainability-in-Action' strategy, positioning the company to execute a clean-energy future as a private entity. The acquisition will allow ALLETE to access capital while retaining its workforce, maintaining compensation levels, and honoring union agreements. ALLETE will continue to be locally managed, headquartered in Duluth, Minnesota, and focus on driving the clean-energy transition by expanding renewables and enhancing grid resiliency.
Minnesota Power, a division of ALLETE Inc., has reached a settlement agreement on its 2024 electric rate proposal with state agencies and large power customers. The agreement, if approved by the MPUC, would result in final rate increases of about 4.9% for residential customers and 4.4% for industrial customers. The interim rate increase of 8.6% for residential customers in 2023 will be refunded, with interest, through bill credits. The settlement aims to balance customer needs with the company's investments for clean energy transition.
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