ALLETE Secures FERC Endorsement for Strategic Acquisition Deal

ALLETE Gains FERC Approval for Major Transaction

ALLETE, Inc. (NYSE: ALE), a prominent energy company headquartered in Duluth, Minnesota, has announced a significant milestone following the Federal Energy Regulatory Commission's (FERC) approval of its merger with the Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). This decision marks an exciting moment for ALLETE as it seeks to strengthen its position in the energy market while providing long-term benefits to its customers, employees, and stakeholders.

Implications of the FERC Approval

In expressing her satisfaction, ALLETE's Chair, President, and CEO, Bethany Owen, emphasized the importance of this regulatory approval. Owen stated, “FERC’s approval represents a critical step toward realizing the advantages of our transaction with CPP Investments and GIP. This partnership will allow for substantial investments in energy and infrastructure, thereby bolstering local economies, maintaining jobs, and ensuring effective management.”

Focus on Stakeholder Input

Owen further remarked on the company’s commitment to engaging with stakeholders throughout this process. ALLETE is dedicated to working diligently to secure the remaining necessary regulatory approvals and welcomes input from various parties. This proactive approach highlights ALLETE’s recognition of stakeholder interests as a vital part of its operational strategy.

Transaction Details and Structure

According to the merger agreement, CPP Investments and GIP will acquire all outstanding common shares of ALLETE for $67 per share, which totals approximately $6.2 billion. The agreement also includes the assumption of debt. Following the transaction, ALLETE will continue to be managed locally while its utility services, including Minnesota Power and Superior Water, Light, and Power, will remain regulated by the relevant oversight bodies, ensuring continuity and stability for customers.

Customer Impact and Future Projections

Encouragingly, the acquisition is not anticipated to affect retail or municipal rates for utility customers. With a projected completion date in the middle of 2025, pending further regulatory approvals and customary conditions, ALLETE expects that this strategic partnership will enable the company to enhance its services and expand its infrastructure capabilities, benefiting its customers and communities.

About ALLETE, Inc.

ALLETE, Inc. is at the forefront of the energy sector in Minnesota, operating both Minnesota Power and Superior Water, Light, and Power in Wisconsin. The company also owns ALLETE Clean Energy and BNI Energy, further diversifying its portfolio in energy-related services. With a commitment to sustainability, ALLETE calculates and reports its carbon emissions based on the GHG Protocol, significantly contributing to environmental stewardship that aligns with modern energy practices.

Continued Commitment to Sustainability

Through its Corporate Sustainability Report, ALLETE highlights its dedication to minimizing environmental impact while promoting sustainable energy solutions. The company is well-positioned to lead in energy efficiency and sustainability measures in the coming years.

Frequently Asked Questions

What approval did ALLETE recently receive?

ALLETE received approval from the Federal Energy Regulatory Commission (FERC) for its proposed merger with CPP Investments and GIP.

What is the value of the acquisition?

The acquisition is valued at approximately $6.2 billion, with CPP Investments and GIP set to acquire ALLETE shares for $67 each.

Will customer utility rates change after the acquisition?

No, the acquisition is not expected to have any impact on retail or municipal utility rates for customers.

When is the expected completion date for the transaction?

The transaction is projected to be completed in mid-2025, subject to certain regulatory approvals.

What other companies are part of ALLETE’s portfolio?

ALLETE also owns ALLETE Clean Energy, BNI Energy, and has interests in various energy-related services across the region.

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