ALLETE : Shareholder Newsletter (June 2025)
ALE
Published on 07/01/2025 at 16:25
Acquisition will support carbon-free transition, Owen tells shareholders
At the May 13 ALLETE Annual Meeting of Shareholders, CEO Bethany Owen said the company remains firmly committed to advancing Minnesota's carbon-free standard and the proposed transaction with Canada Pension Plan Investment Board and Global Infrastructure Partners is critical to achieving that goal and ensuring ALLETE's success.
She said the new partnership
would give ALLETE access to the capital necessary for the
significant investments that are part
From left: Amy Rutledge, Josh McGraw, Nicole Johnson, Colin Anderson, Laura Krollman, Julie Pierce, Bryceton Butkiewicz, Julie Padilla, Bethany Owen, Rachel Cincoski, Aaron Stolp, Steve Morris,
Jeff Scissons, Josh Skelton, Frank Frederickson and Dave Ojala.
of the company's Sustainability in Action strategy and for Minnesota Power to meet the state of Minnesota's carbon-free energy standard. Both Minnesota Power and Superior Water, Light and Power would remain regulated utilities after the transaction,
and the new partners have committed to retaining employees, maintaining compensation and benefits, and honoring all union contracts.
"We chose CPPIB and GIP as our partners in this next chapter because they are aligned with our values, understand our
history, respect our commitment to service, share our vision and strategy for a sustainable clean-energy future, and are confident in our team's ability to bring
that vision to reality," she said. "These two trusted, long-term investors have a track record of success in investing in energy and infrastructure companies, and our partnership will put us in a stronger position to execute our Sustainability in Action strategy
and meet Minnesota's carbon-free energy standard."
Owen also said the company is
making significant progress on several Sustainability in Action initiatives that position the company for long-term success and advance a clean-energy future.
Minnesota Power is developing and executing projects that will deliver even more clean energy to our region, she said, including hundreds of megawatts of new wind and two large solar projects. She said ALLETE and Minnesota Power are making progress
on significant transmission investments, including upgrading and modernizing Minnesota
Power's existing HVDC line and constructing two new transmission projects.
"Taken together, just over the next few years - ALLETE's planned investments will require more than
$5 billion of capital-representing a historic transformation of our company," she said.
While Minnesota Power is ALLETE's largest business, she said all of ALLETE's companies play important roles in our Sustainability in Action strategy-New Energy Equity;
ALLETE Clean Energy; Superior
continued on back
Bethany Owen
Dear fellow shareholders,
Here at the beginning of summer, I am pleased to provide you with an update on our proposed transaction. Just over a
year ago, we announced an exciting new partnership with Global Infrastructure Partners
Commission expected this fall - as the final approval required for the transaction. We are grateful for the ongoing support of the acquisition from our employees, through IBEW Local 31 representation; our partners in organized labor; EnergyCENTS Coalition, a respected low-income customer advocacy organization; and many other community leaders and organizations.
For years, ALLETE has demonstrated leadership in the energy space, delivering valuable services to customers while exceeding state and federal policy goals for our industry. This innovative
about charting ALLETE's future and intentionally choosing partners who are aligned with our company's values and support our commitments to continuing to serve our customers with excellence, while we strengthen our communities and engage authentically with our stakeholders and policy makers. ALLETE's family of businesses remains committed to executing our Sustainability in Action strategy and living our values every day.
As I've shared with you previously, ALLETE's quarterly dividends for shareholders will continue
(GIP) and the Canada Pension Plan Investment
Board (CPP Investments), in which they would acquire ALLETE through an all-cash merger.
Following shareholder approval of this acquisition last August, the transaction has since been approved by both the Federal Energy Regulatory Commission and the Public Service Commission of Wisconsin as being in the public interest.
We continue to work closely with regulators, customers, communities and other stakeholders as our proposed acquisition progresses through the Minnesota regulatory approval process, with a decision from the Minnesota Public Utilities
partnership with GIP and CPPIB positions ALLETE for future success by aligning the company with sophisticated, respected, long-term investors that support our historic growth plan, with approximately $4.8 billion in investments needed over the next five years to support the clean
energy transition, while providing resilient, reliable service and keeping customers' bills as low as possible.
However, this transition is not only about accessing the capital needed for critical energy infrastructure, such as the regional transmission projects our teams are working on today. It's also
until the planned acquisition closes. Along with dividend payments, we will continue investor communications until the close of the transaction. Thank you for your ongoing investment in ALLETE and for your support of ALLETE's exciting next chapter.
Bethany M. Owen
Chair, President and CEO
INVESTOR
A newsletter for the shareholders of ALLETE, inc.
JULY 1, 2025
The annual meeting team gathered for a selfie in the ALLETE Boardroom after the annual meeting.
Water, Light and Power; and BNI Energy.
"I'm grateful to each of these talented, experienced and committed teams-as truly, they are the reason for ALLETE's success," she said.
Company business
ALLETE shareholders, voting mainly by proxy at the meeting, elected 10 directors: George Goldfarb, James Hoolihan, Madeleine Ludlow, Charles Matthews, Susan Nestegard, Douglas Neve, Barbara Nick, Bethany Owen, Robert Powers and Charlene Thomas. They also approved two compensation-related measures, approved an amendment to ALLETE's Articles of Incorporation to modify certain terms relating to Serial Preferred Stock A, and ratified the selection of the company's independent public accounting firm for 2025.
Minnesota Power outlines plan to meet state carbon-free standard in next chapter of EnergyForward
Minnesota Power filed its 2025 Integrated Resource
Shareholders encouraged to request cost basis information prior to ALLETE transition
Plan (IRP) with the Minnesota Public Utilities Commission (MPUC) in early March, outlining next steps to provide safe and reliable energy to customers while adding new resources, meeting increasing
If you are a shareholder that has owned
ALLETE stock prior to 2011, you may need to request cost basis information from ALLETE Shareholder Services.
In 2011, the IRS changed cost basis reporting rules to require transfer agents and brokers to provide shareholders with actual cost basis information. The requirements were designed to help capture accurate reporting of shareholders' gains and losses at tax time. However, the IRS rule only applies to shares purchased through direct stock purchase plans after Jan. 1, 2011. These shares are
referred to as "covered" shares. When you sell "covered" shares, your cost basis information will be reported on the Form 1099-B that
you automatically receive at the end of a year after the sale of shares.
Shares purchased pre-2011 are referred to
as "uncovered" shares. To calculate the cost basis for uncovered shares, you will need
to refer to your year-end statements. With ALLETE's upcoming transition to a privately held company, ALLETE's shareholders will be paid out for their shares, creating a taxable event.
We want you ready to be able to calculate your tax cost basis when the time comes. If you hold shares that were purchased prior to January 2011, please contact ALLETE Shareholder Services at (218) 355-3114, option 2, to request your cost basis
information. Any other questions also can be directed to ALLETE Shareholder Services at the same number.
demand for energy and reducing carbon emissions.
Minnesota Power serves customers and communities in northern Minnesota, including some of the nation's largest industrial operations that require large amounts of power 24 hours a day. The IRP, which looks ahead 15 years, was developed with extensive engagement that included customers, local governments, community organizations, tribal nations and advocates.
"In today's rapidly evolving energy landscape, this plan is rooted in our commitment to ensuring that safe, reliable energy is there when our customers, businesses and industries need it, all while keeping bills as low as possible," said Josh Skelton, Minnesota Power chief operating officer. "We're proud of the tremendous progress we've already made to reduce carbon emissions across our system, and this is a realistic plan for reaching the next milestones in carbon reduction while taking into account a growing
Minnesota Power plans new transmission line in northern Minnesota
demand for electricity."
Highlights of the EnergyForward plan
Minnesota Power is proposing a new 63-mile-long transmission line from its Iron Range Substation near Grand Rapids, Minnesota,
to its St. Louis County Substation near Hermantown, Minnesota, with a connection to American Transmission Company's nearby Arrowhead Substation.
The Iron Range - St. Louis County -Arrowhead (ISA) Transmission Project will support grid reliability and regional
economic growth and is among a number of transmission projects approved by
the regional grid operator, Midcontinent Independent System Operator, in its 2024 Long-Range Transmission Planning portfolio.
As a part of this larger portfolio, the ISA Transmission Project will:
Enhance regional transfer capability and grid reliability in the Upper Midwest, providing flexibility as grid operating conditions become more variable.
Increase economic efficiency and relieve congestion as energy is transferred
from where it is produced to where it is needed.
Support load growth, fleet transition, and electrification as the demand for reliable clean energy increases across the region.
Subject to regulatory approvals and other factors, the transmission line is expected to be operational in 2032. To learn more, go to
.
Maximize and expand customer-focused programs including energy efficiency, energy conservation and demand response.
Add 400 megawatts of new wind projects by 2035 in addition to the 700 megawatts of
renewables announced in our previous IRP and in varying stages of development.
Expand energy storage resources by 100 megawatts by 2035.
Add approximately 1,000 megawatts of natural gas capacity to replace Minnesota Power's last coalfired baseload generation at Boswell Energy Center. Minnesota
Refuel Boswell Unit 3 by 2030 (355 megawatts).
The statements contained in this newsletter and statements that ALLETE may make orally in connection with this newsletter that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
Investor Relations ALLETE ● 30 West Superior Street ● Duluth, MN 55802-2093 ● (218) 355-3114 or 1 (800) 535-3056 ● [email protected] The new phone number for ALLETE's Investor Relations Department is (218) 355-3114. Please make an appointment to meet with an Investor Relations representative by calling this number and dialing option 2 to reach a representative.
25141
Disclaimer
Allete Inc. published this content on July 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 01, 2025 at 20:24 UTC.