DULUTH, Minn., October 06, 2025 — ALLETE, Inc. (NYSE: ALE) (the Company) today announced that the Minnesota Public Utilities Commission (MPUC) voted unanimously to approve its acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). With all required regulatory approvals secured, the transaction is expected to close in late 2025 following issuance of the MPUC’s written order.
“We are grateful to the Minnesota Public Utilities Commission for their thorough review and approval of this important and strategic partnership, and recognition this is in the public interest,” said ALLETE Chair, President and CEO Bethany Owen. “Today’s decision caps a comprehensive public process and positions ALLETE well to meet the significant infrastructure demands of the clean-energy transition without compromising the high-quality service and commitments to reliability and affordability that define our company. We are excited for this next chapter at ALLETE alongside CPP Investments and GIP, who are aligned with our values and support our Sustainability-In-Action strategy and our talented team of employees.”
Owen continued, “I would like to thank the wide range of community leaders and organizations, including labor, business and clean-energy groups, and low-income customer advocates, for their strong support for this transaction and collaboration to reach the best possible outcome for all parties. We are pleased the final approval has resulted in approximately $200 million in total Minnesota Power customer benefits through this process.”
“With this approval, ALLETE is now well-positioned to move forward toward its sustainable and clean-energy future. Together with GIP and the Company’s experienced management team, we look forward to supporting ALLETE as it seeks to enable the availability of reliable, affordable and increasingly sustainable electricity,” said Andrew Alley, Managing Director, Head of Infrastructure, North America & Australasia at CPP Investments.
“Working together with our partners from CPP Investments, we are proud to support ALLETE and its talented leadership as the company begins its next chapter,” said Jonathan Bram, a Founding Partner of GIP. “We are committed to preserving ALLETE’s legacy of intense community focus as it continues to provide safe, reliable, and affordable energy which is increasingly carbon-free for Northeastern Minnesota.”
The final agreement, supported by the Minnesota Department of Commerce, clean-energy organizations, business leaders, labor unions, and advocates for low-income residents, includes historic customer, clean-energy, workforce, and governance commitments. These include:
Customer affordability and rates
One-year base rate freeze to support rate stability for Minnesota Power customers.
$50 million in additional rate credits provided to customers.
A $10 million Long-term Residential Energy Bill Mitigation Fund to support energy efficiency, conservation, and fuel-switching initiatives for customers.
ROE (Return on Equity) reduction from 9.78% to 9.65% post close, immediately lowering costs for customers, and a future ROE cap of 9.78% through December 31, 2030.
Up to $3.5 million in residential customer arrearage forgiveness, supporting eligible low-income customers.
ALLETE, CPP Investments and GIP have agreed to enforceable service quality and system reliability performance metrics for Minnesota Power to guarantee customers continue to receive the high levels of reliability and quality they expect.
Clean energy and infrastructure
Guaranteed access to capital to fund ALLETE’s five-year plan for advancing transmission and renewable energy goals.
$50 million Clean Firm Technology Fund to support regional clean-energy projects and partnerships.
Local oversight and control
A majority independent board of directors, with several from Minnesota and Wisconsin, ensuring regional voices have a greater influence in utility decision-making.
ALLETE headquarters will remain in Duluth, Minnesota, with the current leadership team in place.
Commitment to retain ALLETE’s current workforce, honor union contracts and maintain compensation levels and benefits programs.
The transaction has also received approvals from ALLETE shareholders and federal and state agencies, including the Federal Energy Regulatory Commission and the Public Service Commission of Wisconsin. Upon closing of the transaction, ALLETE’s shares will no longer trade on the New York Stock Exchange. Minnesota Power and Superior Water, Light and Power will remain public utilities, fully regulated by the Minnesota Public Utilities Commission and the Public Service Commission of Wisconsin, respectively.