Vote on Minnesota Power acquistion expected this week

Minnesota regulators are considering testimony they heard last week on a proposed acquisition of Minnesota Power’s parent company, Allete.

A decision is expected soon on whether Minnesota Power should be sold to a private equity firm.

The Public Utilities Commission votes this week on a petition for the purchase of the utility by Global Infrastructure Partners, a private equity firm.

The Canada Pension Plan Investment Board, which oversees CPP investments, would be minority owners.

Maggie Schuppert, director of strategic initiatives for the environmental advocacy group CURE, says although a recent settlement with the state’s Commerce Department added some conditions, they still worry the acquisition sets a dangerous precedent.

“Clearly, if this deal goes through, private equity interests – they see the arguments against it shot down – they’re going to know that our utility sector across the country is ‘open for business,'” says Schuppert.

Schuppert and other opponents contended that because of how the deal is structured, ratepayers could face higher bills.

Utility officials said the new owners would give them financial flexibility to meet the state’s mandate for carbon-free electricity by 2040.

In a nonbinding opinion this summer, an administrative law judge said the deal would not be in the public’s interest. The commission’s vote is expected Oct. 3.

Bethany Owen, president and Chief Executive Officer of Allete, said in her statement before regulators that they have strongly taken into account the concerns raised by skeptics.

“Minnesota Power and our partners are making significant, meaningful and even historic commitments benefiting our customers, our communities and our employees,” says Owen.

During the hearing, commissioners questioned why the proposal did not include the added conditions, meant to reassure the public, in the initial request.

Utility officials responded that the deal came together quickly and that the process included highlighting concerns.

Minnesota Power provides electricity to nearly 150,000 customers in the northeastern and north-central regions of the state.