Public hearings begin over proposed Minnesota Power sale
As the proposed sale of ALLETE, the parent company of Minnesota Power awaits final approval from the Minnesota Public Utilities Commission (PUC), members of the public are being asked to weigh in.
Before the PUC makes it’s decision, a series of hearings is being held during the open public comment period. They’re being presided over by Administrative Law Judge Megan J. McKenzie, who is tasked with delivering an a report to the commission for them to consider when they make their decision in fall of this year.
On April 7, in-person public hearings began, first with a meeting in Cloquet, and another in Duluth.
During the Duluth meeting, dozens signed up to voice their opinions on the proposal.
Several spoke in opposition, worried about the sale of ALLETE to Global Infrastructure Partners (GIP), which is in turn owned by the private equity firm BlackRock.
“After acquiring a company, private equity firms are often laser focused on growing cash flow, typically by using heavy debt loads and raising the cost to consumers. The private equity industry is known for cost cutting to increase cash flow. This can include reductions of qualified staff and the deferral of necessary maintenance and capital improvements.” said Jordan Ash, a Minnesota Power customer.
Others at the meeting spoke in support, such as union officials, business advocates, and even some Minnesota Power Employees themselves.
“This acquisition is a critical step for the continued success of ALLETE and Minnesota Power. It will enable us to strengthen the reliability of our power grid while securing a sustainable and resilient energy future.” said Justin Riddle, a Minnesota Power employee.
Supporters say that money that new ownership will bring will help with greater investment in clean power infrastructure.
In response to the public hearings Minnesota Power issued the following statement.
“ALLETE’S decision to partner with two experienced, long-term investors is about gaining ready access to capital to enable us to meet the State’s clean-energy goals, while we continue to serve Minnesota Power’s customers and communities in northeastern Minnesota with safe, reliable power.
Just as it is today, Minnesota Power will stay locally managed and remain a regulated public utility with strict oversight of electric rates and energy planning by the Minnesota Public Utilities Commission. Additionally, 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. We know that our success is important to preserving the economic vitality of our region.
As regulatory review of the acquisition continues, ALLETE values the input from all stakeholders in this process and we remain confident in the benefits of this transaction for our employees, customers and the communities we serve.
Minnesota Power provides electric service within a 26,000-square-mile area in northeastern Minnesota, supporting comfort, security and quality of life for 150,000 customers, 14 municipalities and some of the largest industrial customers in the United States.”
Four more public hearings will be held this week, the times, dates, and locations of which can be found below. Written comments can be made on the PUC website, and must be submitted by April 17.
April 8, 2025
- 12 p.m. – 2 p.m.
Range Recreation Civic Center, Eveleth, MN
- 5 p.m. – 7 p.m.
Cohasset Community Center, Cohasset, MN
April 10, 2025
- 6 p.m. – 8 p.m.
April 11, 2025
- 12 p.m. – 2 p.m.
Morrison County Government Center, Little Falls, MN