The McKnight Foundation knows people and planet go hand in hand. As we transition to a thriving clean energy economy, we must invest in solutions that make a real difference in people’s lives—like creating good-paying jobs, lowering families’ energy bills, and improving local air and water quality.
On Friday, October 3, the Minnesota Public Utilities Commission unanimously approved the sale of Duluth-based ALLETE, the parent company of Minnesota Power, which serves 145,000 customers in northeastern Minnesota. The acquisition by Global Infrastructure Partners, a subsidiary of BlackRock, and Canadian Pension Plan Investment Board, comes amid growing interest from private equity firms looking to invest in local power providers.
The trend of firms buying up essential services like housing, agriculture, and now utilities is concerning when the goal is solely to maximize profits, which could, at its worst, lead the new owners to raise rates and reduce service. We have an opportunity now to show the country what responsible private ownership of a major electric utility can deliver for people and the planet on our path to a clean energy future for all. We don’t have to make a choice between profits and supporting local communities and workers, or between clean energy and affordability.
We are grateful to our grantee and community partners who worked alongside so many fellow Minnesotans to secure funds for clean, affordable energy for Minnesota Power customers in this sale. Why is this important? Electricity prices are currently rising twice as fast as inflation, and one in three Americans say they’ve skipped basic household necessities like food and medicine to pay their utility bills. Because wind and solar remain the cheapest and fastest sources of new electricity, they’re the solution to meet growing demands for power while keeping energy bills down. We also applaud other settlement terms that preserve existing labor contracts and retain independent directors and local leadership.
Crucially, Minnesota Power will remain a regulated utility under the Minnesota Public Utilities Commission. McKnight Foundation urges the Commission, as well as consumer, labor, and clean energy advocates, to continue making their voices heard for such vital public goods regardless of ownership.
It is critical to ensure that commitments in the sale are fully realized and to address consumers’ warranted concerns, especially in light of recently cancelled federal grants. We can keep rates affordable, support workers, and enhance reliability and resilience, in part by investing in clean energy and much-needed transmission infrastructure.
As the sale moves forward, we must ensure that the new owners prioritize local communities and the environment, because they’re truly inseparable. We must also ensure that as emerging technologies like AI and the data centers that power them continue to grow, that we meet demand with clean energy and continue to put Minnesotans first, so that everyone has what they need to live healthy, affordable lives.
