Minnesota Power’s Private Equity Acquisition Will Increase Costs for Minnesotans, Puts Clean Energy Progress at Risk

DULUTH, Minn. - Today, the Minnesota Public Utilities Commission (PUC) approved plans for ALLETE, the publicly traded parent company of Minnesota Power, to be sold to private equity investors. ALLETE and Minnesota Power will now be owned by the Canadian Pension Plan Investment Board (CPP) and Global Infrastructure Partners (GIP), a subsidiary of BlackRock, the world's largest asset manager.

The PUC voted to approve the acquisition despite evidence showing that the transaction is likely to result in larger rate increases for Minnesota Power customers. There is no guarantee that these private equity investors will provide capital to fund Minnesota Power's clean energy transition. Based on all the evidence, a judge found in Julythat the risks of the acquisition outweigh any potential benefits, and concluded that the deal is not in the public interest. But the PUC chose to overturn the judge's findings and approve the deal despite this evidence.

"This acquisition brings more risks and harms than benefits for Minnesotans. Instead of protecting everyday people from price hikes, this sale will pad private equity investors' pockets while making it harder for Minnesotans to keep the lights on or heat their homes. BlackRock and predatory private equity firms have long proven that their mission will always be to relentlessly pursue profit, no matter the harm it causes to communities. The PUC's decision today will only make it harder for Minnesotans to afford their basic needs as well as put our Carbon Free Standard in jeopardy," said Jenna Yeakle, Central Region Campaign Manager, Beyond Coal at Sierra Club.

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About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.