Overview

• An administrative law judge urged rejection of the BlackRock and CPP Investments bid for Allete in July, and Minnesota Public Utilities Commission staff have now voiced similar concerns ahead of a possible Oct. 3 vote.
• Allete says the $6.2 billion transaction, offering $67 per share at a 19% premium, would not change Minnesota Power’s operations or raise rates and would help finance required clean-energy projects.
• Opponents, including the state attorney general’s office and large industrial customers, argue private owners could load the company with debt that ultimately drives up bills for captive customers.
• Support from construction unions and the governor’s office reflects claims that new capital is needed for Minnesota’s carbon-free mandate, with the potential for a Google data center adding financial stakes.
• The Minnesota fight comes as Blackstone seeks approvals to buy utilities in New Mexico and Texas and after recent deals in Wisconsin and Indiana, coinciding with rising U.S. electricity bills tied in part to data-center growth.