Allete, Inc. (NYSE: ALE) has received unanimous approval from the Minnesota Public Utilities Commission (MPUC) for its acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). The transaction is expected to close in late 2025, following the issuance of the MPUC’s written order.
The approval has resulted in approximately $200 million in total Minnesota Power customer benefits. Some of the key commitments include a one-year base rate freeze to support rate stability for Minnesota Power customers, $50 million in additional rate credits provided to customers, and a $10 million long-term residential energy bill mitigation fund to support energy efficiency, conservation, and fuel-switching initiatives for customers. Additionally, there will be an 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.
The transaction also includes commitments to clean energy and infrastructure, such as guaranteed access to capital to fund Allete’s five-year plan for advancing transmission and renewable energy goals, as well as a $50 million clean firm technology fund to support regional clean-energy projects and partnerships.
Furthermore, the agreement ensures local oversight and control, with a majority independent board of directors, several of whom are from Minnesota and Wisconsin. Allete's headquarters will remain in Duluth, Minnesota, with the current leadership team in place. The commitment also extends to retaining Allete’s current workforce, honoring union contracts, and maintaining 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.
Allete, Inc. is an energy company headquartered in Duluth, Minnesota, and in addition to its electric utilities, it owns Allete Clean Energy, BNI Energy, New Energy Equity, and has an 8% equity interest in the American Transmission Co.
CPP Investments is a professional investment management organization that manages the Canada Pension Plan fund in the best interest of more than 22 million contributors and beneficiaries. At June 30, 2025, the fund totaled C$731.7 billion. As a result of these announcements, the company's shares have moved 0.73% on the market, and are now trading at a price of $67.21. If you want to know more, read the company's complete 8-K report here.
