Minnesota Regulators Approve ALLETE Acquisition with $200 Million in Customer Benefits and Clean Energy Investments

The Minnesota Public Utilities Commission on Oct. 3 approved the acquisition of ALLETE Inc., parent company of Minnesota Power, by Global Infrastructure Partners and the Canada Pension Plan Investment Board, subject to extensive conditions designed to protect customers and support the state’s clean energy transition. The agreement ensures continued state oversight while delivering over $200 million in direct savings and benefits for ratepayers.

Under the order, Minnesota Power customers will receive $50 million in bill credits by 2032 and a $20 monthly discount for eligible low-income households, along with $3.5 million in arrearage forgiveness. The Commission also capped the utility’s Return on Equity at 9.78 percent and its equity ratio at 53 percent through 2030, limiting profitability and mitigating future rate increases. Regulators emphasized that ratepayers will not bear any costs associated with the transaction.

The decision reinforces the state’s commitment to affordability and reliability while ensuring compliance with Minnesota’s Carbon-Free Standard Law. The Partners will fund $10 million for a new residential energy bill mitigation program aimed at weatherization and electrification upgrades for low- and moderate-income customers. Minnesota Power must also develop a “Clean Firm Energy Plan” backed by $50 million in new investment from the Partners, in consultation with labor, environmental, and consumer stakeholders.

To safeguard service quality and workforce stability, the Commission established new accountability measures. Minnesota Power will face $250,000 performance payments for reliability or customer service failures, with proceeds split between bill credits and corrective investments. Employee protections were extended from two to five years, with commitments to maintain local staffing, a Duluth headquarters, and prevailing wage standards for contractors.

Further, the order requires majority-independent board governance with Minnesota representation, enhanced transparency, and expanded reporting obligations. These provisions aim to ensure long-term accountability, protect ratepayers, and sustain community and workforce stability.

Through these measures, regulators balanced investor participation with consumer protection and environmental responsibility, securing financial relief for customers while advancing Minnesota’s broader energy transition objectives.