SAINT PAUL, MN: The Minnesota Public Utilities Commission today approved the sale of ALLETE, the parent company of Minnesota Power, marking a critical step forward for energy reliability, affordability, and public accountability in the state.   

ALLETE, the parent company of Minnesota Power, an electric utility serving 145,000 customers in northeastern Minnesota, will transition to new ownership under Global Infrastructure Partners and Canadian Pension Plan Investment Board in a way that protects the public interest. 

“This is a win for Minnesota ratepayers and for the future of our energy system,” said Pete Wyckoff, Deputy Commissioner of the Department of Energy Resources, Minnesota Department of Commerce. “The Department made clear from the beginning that the initial sale offer failed to adequately protect the public interest—and we pushed hard to obtain a better deal that delivers maximum value for Minnesotans and provides affordability, transparency, and stability. I am also grateful to the Public Utilities Commission for its work to strengthen an already strong settlement.  The acquisition terms that it finalized today reflect the Commission’s commitment to strong, responsible public stewardship.” 

Key Highlights of the Settlement: 

Access to Capital: Minnesota Power’s new owners will provide the utility with sufficient equity capital to finance Minnesota Power’s existing nearly $5 billion capital plan.  

Ratepayer Protections: Minnesota Power will reduce its authorized return on equity, which will bring down rates for customers. Additionally, Minnesota Power will implement a one-year moratorium on rate increases, regardless of economic pressures such as supply chain issues, customer base changes, or inflation.  Thanks to additional work by the Commission, ratepayers will also see an additional $50 million in direct ratepayer relief and $10 million in a new Residential Energy Bill Mitigation Fund. 

Investments in Clean Energy: Minnesota Power will have access to the capital necessary to meet the state’s renewable energy standards. The utility’s new owners will also invest an additional $50 million to develop clean firm resources to meet Minnesota’s 100% carbon-free energy by 2040 standard. 

Enhanced Service Quality: Minnesota Power will be subject to new, wide-ranging service quality standards to improve customer service and facilitate investments that benefit lower-income customers and increased penalties for service violations.  

Improved Governance Safeguards: Safeguards include a majority of independent directors on ALLETE’s board of directors who will help protect Minnesota Power’s long-term value and bring greater objectivity and neutrality to management decisions. 

Workforce and Labor Protections: Existing labor practices and contracts will be preserved for the next two years to ensure stability and continuity for Minnesota Power’s employees and customers. 

Additional Details:  

Culture continuity: Despite the change in ownership, Minnesota Power’s management team will stay in place and continue to operate out of Duluth. 

Regulatory Oversight: Minnesota Power remains a regulated utility under the Minnesota Public Utilities Commission (PUC). Any significant operational changes or rate adjustments will require PUC approval to ensure rates are fair and justified, as required by state law. 

Connect with the Minnesota Commerce Department 

Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media.

Contact
Minnesota Department of Commerce
news.commerce@state.mn.us