ALLETE Clean Energy to Acquire Wind Energy Facilities in Three States
DULUTH, Minn. -- November 11, 2013
ALLETE Clean Energy, a subsidiary of ALLETE, Inc. (NYSE: ALE), has signed an
acquisition agreement to purchase wind farms in Minnesota, Iowa and Oregon
from The AES Corporation in early 2014 and has also signed an option agreement
to acquire a fourth wind energy facility in Pennsylvania in mid-2015.
Under the acquisition agreement, ALLETE Clean Energy would acquire AES’
position in operating wind energy projects in Lake Benton, Minn., Storm Lake,
Ia., and Condon, Ore. with a total output of 231 Megawatts (MW) for $27
million. All three wind farms to be acquired have power purchase agreements in
place for their entire electric output. The project sites enjoy favorable wind
resources in their respective areas, are strongly supported by local
communities, and are currently staffed by approximately 40 skilled
Pursuant to the option agreement, ALLETE Clean Energy will have an option to
acquire the 101MW Armenia Mountain, Penn. wind farm. That project became
operational in 2009 and has two long-term power purchase agreements in place.
It is located in the PJM electricity market area near the Pennsylvania-New
“To acquire and operate these renewable electric generation assets perfectly
fits our mission,” said ALLETE Clean Energy President Eric Norberg. “This
transaction will deliver incremental cash flows and the potential for
long-term earnings growth while positioning ALLETE Clean Energy in new
markets. We plan to leverage these initial acquisitions as the business of
renewable energy matures to the next level.”
“This acquisition is right in line with our strategy of growing energy-centric
earnings streams that expand our customer base and complement our traditional
utility operations,” said Alan R. Hodnik, chairman, president and CEO of
ALLETE. “It also supports our belief that cleaner energy sources will become
increasingly valuable as we participate in our nation’s energy evolution. By
2015, ALLETE and its business subsidiaries may have nearly 850MW of installed
wind generation.” Hodnik added that excluding transaction costs, the
acquisition would be accretive to ALLETE earnings in 2014.
The acquisition is subject to customary closing conditions including FERC
approval and is expected to close early 2014. Morgan Stanley is acting as
financial advisor to ALLETE Clean Energy for this transaction.
ALLETE Clean Energy was established in 2011 to acquire or develop capital
projects to create energy solutions by way of wind, solar, biomass, hydro,
natural gas, shale resources, clean coal technology and other emerging energy
ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota. ALLETE’s
energy businesses include Minnesota Power, Superior Water, Light & Power Co.,
BNI Coal, and ALLETE Clean Energy. More information about the company is
available at www.allete.com.
The statements contained in this release and statements that ALLETE may make
orally in connection with this release that are not historical facts, are
forward-looking statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in documents
filed by ALLETE with the Securities and Exchange Commission.
Amy Rutledge, 218-723-7400
Manager – Corporate Communications
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