A Tale of Two Dockets: Does Minnesota Power need private equity capital to comply with Minnesota’s carbon free standard, or not? 

As we have previously discussed, northern utility Minnesota Power is currently seeking Minnesota Public Utilities Commission (PUC) approval to be bought out by two large private investors. ALLETE, the Duluth-based company that owns Minnesota Power, has reached a $6.2 billion deal to be purchased by the Canada Pension Pan Investment Board (CPP) and Global Infrastructure Partners (GIP), a subsidiary of BlackRock. Minnesota Power argues that the acquisition would provide it with improved access to capital—capital the company claims it needs to comply with Minnesota law pushing electric utilities to eliminate their carbon emissions over the next 15 years.   

Meanwhile, in a separate proceeding before the PUC, Minnesota Power plans to “add approximately 1,000 megawatts of new natural gas capacity,” including 750 megawatts of new natural gas—a proposal that seems inconsistent with the Company’s efforts to reduce carbon emissions.  This proposal comes in Minnesota Power’s latest Integrated Resource Plan (IRP). An IRP is a roadmap that public utilities use to analyze and model various strategies for meeting demand and state policy goals over a next 15-year time horizon.  

Because Minnesota Power is a regulated utility subject to the jurisdiction of the Minnesota Public Utilities Commission (PUC), the acquisition is subject to the PUC’s review and approval.  The PUC will approve the acquisition only if Minnesota Power and the investors convince the PUC that doing so is consistent with the public interest. On the other hand, if the PUC is unconvinced the acquisition is consistent with the public interest, it could deny approval (preventing the acquisition from closing) or condition its approval on Minnesota Power and the investors meeting certain conditions the PUC specifies in an order. For the reasons we have shared previously, CUB believes the Commission should deny approval. 

So what gives – why the apparent inconsistency between the acquisition and IRP proceedings? 

The ALLETE acquisition and Minnesota Power IRP proceedings came to a symbolic crossroads on Thursday, April 3. On that day, parties to the ALLETE acquisition proceeding occupied the PUC’s large hearing room for the third and final day of an evidentiary hearing before a judge. Down the hall, parties to Minnesota Power’s IRP proceeding occupied the PUC’s small hearing room to answer Commissioner questions about Minnesota Power’s IRP.  

In the latter hearing, the Chair of the Commission identified the inconsistency between Minnesota Power claiming the acquisition is needed to fund the clean energy transition and then proposing to add significant natural gas capacity in its IRP filing. Another Commissioner then pushed Minnesota Power to explain whether the IRP would look any different if it were filed a year from now and informed by the PUC’s approval or denial of the acquisition. (See the 47 minute mark, here.) In response, Minnesota Power claimed its IRP would look the same, regardless of whether the acquisition is approved or denied.  

This answer—and the inconsistencies between the ALLETE acquisition docket and the Minnesota Power IRP, generally—raises an important question for us: if the Company plans to add significant natural gas capacity regardless of whether the acquisition is approved, then why approve the acquisition under the guise of supporting ALLETE’s need to fund its efforts to reduce carbon emissions?  This question is sure to resurface for the Commission as both proceedings move forward in parallel in the months ahead. 

How to participate  

Anyone interested in submitting a written comment on either the ALLETE acquisition or Minnesota Power IRP can do so by following the PUC’s instructions here. Public comments on the ALLETE acquisition must be submitted by April 17, 2025 in order to be formally included in the evidentiary record. If you submit a comment, be sure to reference  

• PUC Docket Number 24-198 for the acquisition, and/or
• PUC Docket Number 25-127 for the IRP 

And know that everything included in your comment will become part of the public record.  

Keep an eye on our website—and sign up for our newsletter—for additional updates on these issues.