Profile: ALLETE Inc (ALE)
2 Dec 2016
ALLETE, Inc., incorporated on January 25, 1906, is an energy company. The Company operates through three segments: Regulated Operations, ALLETE Clean Energy and U.S. Water Services. The Regulated Operations segment 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 regulated utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. Its regulated utility operations include retail and wholesale activities. Minnesota Power provides regulated utility electric service in northeastern Minnesota to approximately 145,000 retail customers. SWL&P is a Wisconsin utility and a wholesale customer of Minnesota Power.
The U.S. Water Services segment is integrated water Management Company. The Company's Corporate and Other consists of BNI Coal, Ltd. (BNI Energy), which engages in coal mining operations in North Dakota, ALLETE Properties, LLC (ALLETE Properties), which represents legacy Florida real estate investment and other business development. BNI Energy is a supplier of lignite in North Dakota, producing approximately four million tons annually and has lignite reserves of an estimated over 650 million tons.
The Company's Minnesota Power taconite and iron concentrate customers produce approximately 80% of the iron ore produced in the United States. Taconite, an iron-bearing rock of relatively low iron content, is available in northern Minnesota and a domestic source of raw material for the steel industry. Taconite processing plants use electric power to grind the iron-bearing rock, and agglomerate and pelletize the iron particles into taconite pellets. Iron concentrate reclamation facilities also use electricity to extract and process iron-bearing tailings left from previous mining operations to produce iron ore concentrate. Minnesota Power provides electric service to over five taconite customers capable of producing approximately 40 million tons of taconite pellets annually. Four of these customers are Large Power Customers. Taconite pellets produced in Minnesota are shipped to North American steel making facilities that are part of the integrated steel industry. Steel produced from these North American facilities is used in the manufacture of automobiles, appliances, pipe and tube products for the gas and oil industry, and in the construction industry.
Minnesota Power provides electric service to over three iron concentrate facilities capable of producing approximately four million tons of iron concentrate per year. Iron concentrate is used in the production of taconite pellets. In addition to serving the taconite industry, Minnesota Power serves a range of customers in the paper, pulp and secondary wood products industry. Minnesota Power has approximately nine power customer contracts, each serving requirements of over 10 megawatt (MW) customer load. The customers consist of approximately five taconite producing facilities, over two concentrate reclamation facilities and approximately four paper and pulp mills. Minnesota Power provides regulated utility electric service in northeastern Minnesota to approximately 144,000 residential and commercial customers. SWL&P provides regulated electric, natural gas and water service in northwestern Wisconsin to approximately 15,000 electric customers, over 13,000 natural gas customers and approximately 10,000 water customers. Minnesota Power has over 20 non-affiliated municipal customers in Minnesota.
Minnesota Power's generation is primarily coal-fired, and also includes approximately 180 MW of natural gas-fired and biomass co-fired generation, over 120 MW of hydroelectric generation and approximately 520 MW of nameplate capacity wind energy generation. Purchased power consists of long-term coal, wind and hydro power purchase agreements (PPAs), as well as market purchases. Minnesota Power has an annual net peak load of approximately 1,630 MW. Minnesota Power purchases low-sulfur, sub-bituminous coal from the Powder River Basin region located in Montana and Wyoming. It has electric transmission and distribution lines of approximately 500 Kilovolt (kV), over 340 kV, approximately 250 kV, over 230 kV, approximately 160 kV, over 140 kV, approximately 110 kV and over 110 kV. It owns and operates approximately 180 substations with a total capacity of over 10,980 megavolt amperes. Some of its transmission and distribution lines interconnect with other utilities.
The Company's subsidiary, ALLETE Transmission Holdings, owns interest in ATC, a utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. The Company's industrial customers are in the taconite mining, iron concentrate, paper, pulp and secondary wood products, and pipeline industries.
ALLETE Clean Energy
The ALLETE Clean Energy segment focuses on developing, acquiring and operating clean and renewable energy projects. The ALLETE Clean Energy segment owns and operates in approximately four states with over 530 MW nameplate capacity wind energy generation. In addition, ALLETE Clean Energy constructed approximately 110 MW wind energy facility for sale to Montana-Dakota Utilities.
U.S. Water Services
The Company's U.S. Water Services segment provides integrated water management for industry by combining chemical, equipment, engineering and service for customized solutions. U.S. Water Services is located in over 50 states and Canada and has an established base of approximately 4,000 customers. U.S. Water Services develops synergies between established solutions in engineering, equipment and chemical water treatment and helping customers. U.S. Water Services is a provider to the biofuels industry, and also serves the food and beverage, industrial, power generation, and midstream oil and gas industries.
30 W SUPERIOR ST
DULUTH MN 55802-2093
Company Web Links
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- BRIEF-Allete Q3 earnings per share $0.81
- BRIEF-Allete promotes Bob Adams to CFO effective March 2017
- BRIEF-Minnesota Power to retire two small coal-fired generators at Boswell Energy