ALLETE sale now just one step away

DULUTH, Minn. – In May of 2024 ALLETE, the company that runs Minnesota Power and Superior Water, Light and Power of Wisconsin along with other energy related companies announced it reached an agreement to be acquired.

Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) offered to pay $6.2 billion for the company.

But before the deal could be finalized, a number of governmental agencies have to approve the sale.

On Friday July 11, 2025 the Minnesota Department of Commerce announced it would withdraw its opposition to the acquisition and recommend the Minnesota Public Utilities Commission (MPUC) approve the transaction.  The MPUC is now the last agency needed to approve the deal.

The July 2025 withdrawing of opposition was due to a settlement.  In the settlement the Minnesota Department of Commerce pointed to eight key things for the energy company’s future.

• 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.
• 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 number of independent directors on ALLETE’s board of directors that will be based in Minnesota and Wisconsin 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.
• 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.