Judge Recommends Against Approving ALLETE Partnership
DULUTH, Minn. — An Administrative Law Judge released a report recommending the Public Utilities Commission reject the proposed purchase of Allete Inc./Minnesota power
Under the proposed partnership, ALLETE would no longer be a publicly traded company.
It would be sold to two private equity investors, the Canadian Pension Plan Investment Board and Global Infrastructure Partners.
The report claims that the proposed settlement does not adequately protect consumers or show that the investors would provide ALLETE with the funding for the transition to clean energy.
ALLETE responded to that report saying that key terms of the proposed settlement were misrepresented.
ALLETE says in a news release provisions were made to protect consumers and that funding was agreed upon to advance renewable energy goals.
“We strongly disagree with the conclusions in this non-binding recommendation,” said the news release, “It inadequately reflects ALLETE’s recent comprehensive settlement agreement with the Minnesota Department of Commerce, which would deliver immediate and significant customer benefits upon close.”
The judge, however, feels that “The non-public evidence reveals intent to do what private equity is expected to do – pursue profit in excess of public markets through company control.”
She asserts that while the legal standard varies, it does not meet either standard as the result would harm public interest.
