ALLETE Completes Acquisition by CPP Investments and Global Infrastructure Partners, Marking a New Era of Investment and Community Commitment
ALLETE, Inc. (NYSE: ALE) has officially entered a new chapter in its more than century-long history with the completion of its acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). The transaction was finalized following the issuance of a final written order and unanimous approval by the Minnesota Public Utilities Commission (MPUC), a critical regulatory milestone that underscores the broad public-interest support for the deal.
The completion of the acquisition represents not only a change in ownership structure, but also a reaffirmation of ALLETE’s mission to provide reliable, affordable, and increasingly sustainable energy to the communities it serves. With the backing of two of the world’s most prominent long-term infrastructure investors, ALLETE is positioned to accelerate investments in grid reliability, clean energy, and regional economic development while maintaining its strong local roots.
Historic Benefits for Customers and Communities
As part of the acquisition agreement, ALLETE, CPP Investments, and GIP have committed to delivering approximately $200 million in direct benefits to Minnesota Power customers and the communities served by the utility. This package of benefits is being described as historic in scope and reflects extensive engagement with regulators, policymakers, and community stakeholders during the approval process.
Key elements of the customer and community benefits include a one-year base rate freeze, providing immediate bill stability for customers during a period of economic uncertainty and rising energy costs nationwide. In addition, customers will receive $50 million in rate credits, directly reducing electricity bills and improving affordability across residential, commercial, and industrial customer classes.
Beyond these immediate financial measures, the benefits package also includes additional support for energy affordability programs and innovation initiatives. These efforts are designed to help customers manage energy costs over the long term, encourage the adoption of new technologies, and support solutions that improve efficiency and resilience across the energy system.
Supporting the Energy Transition and Grid Expansion
CPP Investments and GIP have also made a firm commitment to fund ALLETE’s five-year capital plan, which focuses on strengthening and expanding the regional transmission grid and advancing the company’s energy transition strategy. Transmission investment is a critical component of meeting future energy demand, integrating renewable resources, and maintaining system reliability as the energy mix evolves.
ALLETE’s energy transition plan aligns with Minnesota’s clean-energy goals and broader regional decarbonization objectives. With increased access to long-term capital from its new owners, the company will be better positioned to modernize infrastructure, deploy cleaner generation resources, and invest in technologies that support a more flexible and resilient grid.
These investments are expected to deliver long-term value not only for customers, through improved reliability and cleaner power, but also for local economies, by supporting construction activity, skilled jobs, and supply chains across the region.
Commitment to Local Leadership and Governance
Despite the change in ownership, ALLETE will remain locally managed and headquartered in Duluth, Minnesota. The company’s current leadership team and workforce will continue in their roles, preserving institutional knowledge and maintaining continuity in operations and community engagement.
The company’s board of directors will be majority independent, with several members based in Minnesota and Wisconsin. This governance structure is designed to ensure that regional perspectives and local priorities remain central to decision-making, particularly for regulated utility operations that have a direct impact on customers and communities.
By maintaining local management and a regionally representative board, ALLETE, CPP Investments, and GIP aim to balance the advantages of global investment expertise with a deep understanding of local needs and regulatory expectations.
Leadership Perspective on the Transaction
Commenting on the completion of the acquisition, ALLETE Chair, President, and Chief Executive Officer Bethany Owen highlighted the significance of the partnership and the opportunities it creates for the company and its stakeholders.
She emphasized that the transaction strengthens ALLETE’s ability to advance critical infrastructure investments, ensure a reliable electric grid, and support the achievement of state clean-energy goals. At the same time, she underscored the importance of preserving ALLETE’s longstanding legacy of local leadership and community focus.
Owen also expressed gratitude to the Minnesota Public Utilities Commission, the Minnesota Department of Commerce, and numerous community partners for their roles in shaping an agreement that delivers tangible, meaningful benefits to customers and communities. She reaffirmed that ALLETE’s core focus remains unchanged: providing affordable, reliable, and increasingly sustainable energy, while working collaboratively across all ALLETE companies to help lead the transition to a clean-energy future.
Transaction Details and Shareholder Considerations
Under the terms of the merger agreement, CPP Investments and GIP acquired all outstanding common shares of ALLETE. ALLETE common shareholders will receive $67 per share in cash, with payments to be made shortly after the closing of the transaction.
In connection with the completion of the acquisition, trading of ALLETE’s stock was suspended prior to the opening of trading on the New York Stock Exchange. The transaction provides shareholders with immediate cash value while transitioning the company to private ownership under investors with a long-term infrastructure focus.
Continued Regulation and Customer Protections
Importantly, Minnesota Power and Superior Water, Light and Power will continue to operate as public utilities and will remain fully regulated by their respective oversight bodies. Minnesota Power will remain subject to regulation by the Minnesota Public Utilities Commission, while Superior Water, Light and Power will continue to be regulated by the Public Service Commission of Wisconsin.
This regulatory framework ensures that customer protections remain firmly in place and that utility operations continue to be guided by established standards for reliability, affordability, and service quality. In addition, transaction-related costs associated with the acquisition will not be passed on to customers, providing further assurance that the deal will not negatively affect rates.
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