Profile: Allete, Inc. (ALE)

ALLETE, Inc. (ALLETE) provides energy services in the upper Midwest and has real estate holdings in Florida. The Company operates in two segments: Regulated Operations, and Investments and Other. Regulated Operations includes its regulated utilities, Minnesota Power and Superior Water, Light and Power Company (SWL&P), as well as its investment in American Transmission Company LLC (ATC), a Wisconsin-based regulated utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. Investments and Other is comprised primarily of BNI Coal, Ltd. (BNI Coal), its coal mining operations in North Dakota, and ALLETE Properties, its Florida real estate business. During the year ended December 31, 2008, the Company’s municipal customers represented 8 % of total regulated utility kilowatt-hour sales. Its municipal customers consist of 16 municipalities in Minnesota and one private utility in Wisconsin. The Company’s wholly owned subsidiary, Rainy River Energy owns approximately 8 % of ATC.

Regulated Operations

Minnesota Power provides regulated utility electric service in northeastern Minnesota to 142,000 retail customers and wholesale electric service to 16 municipalities. During 2008, its industrial customers represented 57 % of total regulated utility kilowatt-hour sales. The industrial customers are primarily in the taconite, paper, pulp, wood products and pipeline industries. In addition to serving the taconite industry, Minnesota Power also serves a number of customers in the paper, pulp and wood products industry, which represent 1,567 kilowatt-hours, or 22 %, of its total industrial sales in 2008. In total, it serves four major paper and pulp mills directly and one paper mill indirectly by providing wholesale service to the retail provider of the mill. Minnesota Power also serves three wood product manufacturers.

SWL&P provides regulated electric service, natural gas and water service in northwestern Wisconsin to 15,000 electric customers, 12,000 natural gas customers and 10,000 water customers. Its regulated utility operations include retail and wholesale activities under the jurisdiction of state and federal regulatory authorities.

Investments and Other

The Investments and Other segment also includes emerging technology investments, a small amount of non-rate base generation, approximately 7,000 acres of land for sale in Minnesota, and earnings on cash and short-term investments. The Company’s two major development projects include Town Center and Palm Coast Park. As of December 31, 2008, a third proposed development project, Ormond Crossings, was in the permitting and planning stage. Development activities involve mainly zoning, permitting, platting, and master infrastructure construction.