The Minnesota Public Utilities Commission signed off on a deal that means ALLETE can be bought by two infrastructure investors.
The Minnesota Public Utilities Commission met on Friday morning and gave their approval to the $6.2 billion dollar deal between ALLETE and the two investment groups who want to acquire them.
They are the Canada Pension Plan Investment Board and Global Infrastructure Partners.
Commission members said they had been skeptical at first, but then praised the petitioners for being flexible and working with them.
Katie Sieben, Chair of the MPUC , said it’s not a perfect docket, but she commends the work that the partners have done.
The state says there will be $50 million in bill credits for rate payers, distributed by 2032. Partners have also agreed to labor protections, including maintaining local employment levels.
There has been opposition to the acquisition from some like the Sierra Club and the Citizens Utility Board.
Supporters are voicing their praise on Friday. This is from Fresh Energy:
“We applaud the Commission for seeing through a truly alarming amount of misinformation and disinformation that was propagated by some of the media around this issue. I am immensely proud of Fresh Energy’s contributions to this outcome, remaining laser focused on tangible outcomes affecting Minnesota Power’s communities and customers,” said Margaret Cherne-Hendrick, Chief Executive Officer of Fresh Energy. “Fresh Energy and our partners prioritized the real-world impacts this decision will have on Minnesotans. We are grateful to the Minnesota Public Utilities Commission for its thoughtful work in delivering the best outcome for Minnesota Power’s customers, and particularly for its ongoing role providing regulation to ensure lowest-cost utility rates and common sense infrastructure investments, regardless of the utility ownership model.”
Minnesota Power has said after the transaction, they will continue to be a utility division of ALLETE, and remain headquartered in Duluth.
According to the fact sheet from Minnesota Power, they said that they will remain a regulated public utility under Minnesota law, and future rates will continue to be subject to review and approval by the MPUC.
With all necessary regulatory approvals now in place, transaction expected to close in late 2025
The proposal had been announced in May of 2024.
