The Minnesota Public Utilities Commission has approved the acquisition of Allete by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). With all regulatory approvals now in place, the transaction is expected to close in late 2025 following the commission’s written order.
The agreement, supported by state and community stakeholders, includes a range of commitments related to customer affordability, clean energy investment, and workforce stability. Key measures include a one-year base rate freeze for Minnesota Power customers, a reduction in the return on equity from 9.78% to 9.65%, and a $50 million rate credit programme. The plan also establishes a $10 million energy efficiency fund and up to $3.5 million in bill forgiveness for eligible low-income households.
To support the transition to cleaner energy, Allete, CPP Investments, and GIP will provide capital for a five-year renewable energy and transmission plan, and contribute to a $50 million fund for regional clean-energy projects.
Local oversight will be maintained through a majority independent board, with several members from Minnesota and Wisconsin. Allete’s headquarters will remain in Duluth, and its current leadership and workforce will be retained.
Once completed, Allete’s shares will be delisted from the New York Stock Exchange. Minnesota Power and Superior Water, Light and Power will continue to operate as regulated public utilities under state and federal oversight.
