Allete, Inc. has recently 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 bring approximately $200 million in customer benefits and is set to close in late 2025.
The approved acquisition includes several commitments to benefit customers, clean energy, workforce, and governance. Notably, it involves a one-year base rate freeze to support rate stability for Minnesota Power customers, $50 million in additional rate credits for customers, and the establishment of a $10 million long-term residential energy bill mitigation fund. 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. Additionally, there will be up to $3.5 million in residential customer arrearage forgiveness to support eligible low-income customers.
The agreement also includes commitments related 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 acquisition ensures local oversight and control, with commitments to maintain a majority independent board of directors, keep Allete headquarters in Duluth, Minnesota, retain the current workforce, honor union contracts, and maintain compensation levels and benefits programs.
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, and 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.
Allete, Inc. is an energy company headquartered in Duluth, Minnesota, with electric utilities such as Minnesota Power and Superior Water, Light and Power of Wisconsin. The company also owns Allete Clean Energy, BNI Energy, and New Energy Equity, and holds an 8% equity interest in the American Transmission Co.
CPP Investments, the professional investment management organization managing the Canada Pension Plan fund, played a key role in the acquisition. As of June 30, 2025, the fund totaled C$731.7 billion, and CPP Investments is focused on making investments around the world in various asset classes, including public equities, private equities, real estate, infrastructure, fixed income, and alternative strategies. 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. Check out the company's full 8-K submission here.
