ALLETE Clean Energy Finalizes Acquisition of Wind Farms in Minnesota, Iowa
DULUTH, Minn. -- January 31, 2014
ALLETE Clean Energy, a subsidiary of ALLETE, Inc. (NYSE: ALE), has finalized
the purchase of wind farms in Minnesota, Iowa and Oregon from The AES
ALLETE Clean Energy acquired the operating wind energy projects in Lake
Benton, Minn., Storm Lake, Iowa, and Condon, Ore., from AES for $27 million.
All three wind farms – with a total output of 231 Megawatts – have power
purchase agreements in place for their entire electric output.
Since the acquisition agreement was announced Nov. 11, customary closing
conditions have been met, including approval from the Federal Energy
“With this acquisition, ALLETE Clean Energy will establish core infrastructure
that will allow us to expand to other wind or similar clean energy projects,”
said Eric Norberg, president of ALLETE Clean Energy. “It’s a significant and
diverse first step in the implementation of new energy-centric projects.”
Since news of the acquisition agreement was released in November, ALLETE Clean
Energy personnel have visited all three sites to meet with the approximately
40 employees who operate and maintain the three wind farms. Most of the
current AES employees opted to join ALLETE Clean Energy and those skilled
technical employees will be retained under the new ownership.
The three facilities will be overseen by Dave Leveille, who was named director
of asset management for ALLETE Clean Energy on Jan. 1, 2014. Leveille has a
strong generation operations and renewable operations background. Prior to
joining ALLETE Clean Energy, Leveille was general manager-energy pricing and
market support for Minnesota Power, a utility division of ALLETE, Inc.
ALLETE Clean Energy also signed in November an option agreement to acquire a
fourth wind farm from AES in mid-2015. Pursuant to that 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 near the
Pennsylvania-New York border.
“These acquisitions fit our corporate strategy of growing energy-centric
earnings to complement our traditional utility operations,” said Alan R.
Hodnik, chairman, president and CEO of ALLETE. He said acquisition of the
Iowa, Minnesota and Oregon wind installations is expected to be accretive to
ALLETE earnings in 2014, excluding transaction costs.
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, Minn. 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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