Allete, Inc. has obtained regulatory approval from the Minnesota Public Utilities Commission for its acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). The acquisition is expected to close in late 2025, following the issuance of the MPUC’s written order.
The approval includes several commitments that are expected to benefit Minnesota Power customers, including a one-year base rate freeze, $50 million in additional rate credits, and a $10 million long-term residential energy bill mitigation fund. Additionally, the return on equity (ROE) will be reduced from 9.78% to 9.65% post-close, lowering costs for customers, with a future ROE cap of 9.78% through December 31, 2030.
Allete, CPP Investments, and GIP have agreed to enforceable service quality and system reliability performance metrics for Minnesota Power to ensure customers continue to receive high levels of reliability and quality. The transaction also includes commitments related to clean energy and infrastructure, local oversight and control, and maintaining the current leadership team and headquarters in Duluth, Minnesota.
Moreover, the transaction has 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.
The market has reacted to these announcements by moving the company's shares 0.73% to a price of $67.21. If you want to know more, read the company's complete 8-K report here.
