DULUTH — Northern Minnesota residents will have an opportunity to comment on the proposed acquisition of ALLETE, Minnesota Power's parent company, by two investment companies at public hearings throughout the region this week.
The hearings are the next step in the process of the sale of Duluth-based ALLETE to Canada Pension Plan Investment Board and Global Infrastructure Partners. The Minnesota Public Utilities Commission must approve the buyout by determining it is "consistent with the public interest."
Duluth-based ALLETE sold for $6.2 billion last year to Canada Pension Plan Investment Board and Global Infrastructure Partners.
GIP is a private equity fund that was acquired by BlackRock, the world's largest asset management firm, last year.
CPP Investments is one of the world's largest national pension fund managers and private equity investors. It oversees the investment of Canada Pension Plan funds, though it operates independently of the Canadian government.
In its initial PUC filing, Minnesota Power said becoming a private company would provide the capital needed to make the clean energy transition.
ALLETE said electricity rates would not be impacted and it would remain locally managed and operated and retain the existing workforce.
"Our new partners have made firm commitments as part of this transaction, including to maintain ALLETE's local headquarters in Duluth, honor union agreements, retain its workforce and preserve compensation levels," a Monday, April 7, statement from Minnesota Power states. "We know that our success is important to preserving the economic vitality of our region."
But numerous groups, including the Sierra Club, CURE and Citizens Utility Board, are advocating against the acquisition.
Opponents said it will create unnecessary risks for ratepayers, make the company less transparent and slow clean energy investment.
They have pointed to the typical investment habits of private equity, including not holding investments for long and buying new debt to maximize profit, and say the acquisition would likely mean significant rate increases.
Minnesota Power public hearing schedule
- Monday, April 7, 6-8 p.m., Duluth, Inn on Lake Superior
- Tuesday, April 8, noon-2 p.m., Eveleth, Range Recreation Civic Center
- Tuesday, April 8, 5-7 p.m., Cohasset, Cohasset Community Center
- Thursday, April 10, 6-8 p.m., virtual. Find the meeting link here
- Friday, April 11, noon-2 p.m., Little Falls, Morrison County Government Center
Editor's Note: This story was updated to include a statement issued Monday by Minnesota Power.
