The Public Service Commission of Wisconsin (PSCW) on Thursday cleared power utility and renewables developer ALLETE Inc.’s acquisition by a partnership between Canada Pension Plan (CPP) Investments and Global Infrastructure Partners (GIP).

The United States Federal Energy Regulatory Commission (FERC) already approved the transaction last year. Duluth, Minnesota-based ALLETE needed a separate approval from the PSCW as it owns a regulated utility supplying electricity, natural gas and water to Wisconsin customers.

“ALLETE continues to work on securing the last major regulatory approval for the transaction from the Minnesota Public Utilities Commission [MPUC]”, the company, which owns Minnesota Power, said in an online statement Thursday.

ALLETE expects the transaction to close mid-2025. Shareholders approved the deal August 21, 2024, with 97 percent of votes cast in favor. That represented about 74 percent of shares, according to ALLETE.

“Following close, ALLETE will remain locally managed and operated”, it said Thursday. “Its utilities, Minnesota Power and SWL&P [in Wisconsin], will continue to be regulated by the MPUC, the PSCW and FERC.

“The acquisition is not expected to impact retail or municipal rates for utility customers”.

Under the transaction announced May 6, 2024, the CPP Investments-GIP partnership will acquire the publicly issued shares of Duluth, Minnesota-based ALLETE for $67 a unit in cash. Inclusive of ALLETE’s debt, the transaction has a total value of $6.2 billion.

CPP Investments and GIP will retain ALLETE’s leadership and workforce, honor union contracts, retain ALLETE’s headquarters and continue ALLETE’s plans and goals, according to the May announcement.

“Transitioning to a private company with these strong partners will not only limit our exposure to volatile financial markets, it also will ensure ALLETE has access to the significant capital needed for our planned investments now and over the long term”, ALLETE chair, president and chief executive Bethany Owen said May.

James Bryce, managing director and global head of infrastructure at CPP Investments, said then, “ALLETE is at the forefront of the clean energy transition and we are thrilled to support the delivery of the company’s ‘Sustainability-in-Action’ strategy, which we believe will generate substantial value both for ALLETE’s customers and CPP contributors and beneficiaries”.

GIP chair and chief executive Adebayo Ogunlesi said, “GIP, alongside CPP Investments, look forward to partnering to provide ALLETE with additional capital so they can continue to decarbonize their business to benefit the customers and communities they serve”.

“Bringing together ALLETE, with its demonstrated commitment to clean energy, with GIP, one of the world’s premier developers of renewable power, furthers our commitment to serve growing market needs for affordable, carbon-free and more secure sources of energy”, Ogunlesi added.

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