Overview

• The Minnesota Public Utilities Commission is slated to vote Oct. 3 on a roughly $6.2 billion BlackRock–CPP Investments acquisition of Allete, with labor groups and Gov. Tim Walz’s administration backing the deal and the state attorney general and major industrial customers opposing it.
• An administrative law judge recommended rejection in July, and commission staff recently echoed concerns that highly leveraged ownership could raise profits for investors while shifting risk to ratepayers.
• Allete says Minnesota Power’s operations would not change, rates would not be affected, and private capital would help meet the state’s 2040 carbon-free requirement, citing about $4.3 billion in planned transmission and clean-energy projects over five years.
• Investor interest is broadening as Blackstone seeks approvals to acquire Public Service Company of New Mexico and Texas New Mexico Power, while Wisconsin approved the sale of the parent of Superior Water, Light and Power and a 19.9% stake in Northern Indiana Public Service Co. went to Blackstone last year.
• Electric bills are climbing nationwide, and reporting indicates some costs reflect the buildout to serve large data centers, with a potential Google facility in Minnesota adding to the stakes in the Allete decision.