ALLETE, Inc. (ALE): Business Model Canvas

In der dynamischen Landschaft der Energiewende entwickelt sich ALLETE, Inc. (ALE) zu einem strategischen Kraftpaket, das erneuerbare Innovationen, nachhaltige Infrastruktur und kundenorientierte Lösungen miteinander verbindet. Durch die sorgfältige Erstellung eines umfassenden Business Model Canvas, das technologische Leistungsfähigkeit mit Umweltschutz in Einklang bringt, navigiert dieses Versorgungsunternehmen mit bemerkenswerter Agilität durch das komplexe Energieökosystem. Von der Wind- und Solarenergie bis hin zu maßgeschneiderten Industriedienstleistungen stellt das ALLETE-Modell einen überzeugenden Entwurf für moderne Versorgungsunternehmen dar, die ihre Wirtschaftsleistung mit dem Engagement für saubere Energie in Einklang bringen möchten.

ALLETE, Inc. (ALE) – Geschäftsmodell: Wichtige Partnerschaften

Versorgungsunternehmen und regionale Stromnetze

ALLETE arbeitet mit mehreren regionalen Versorgungsnetzwerken zusammen, darunter:

Midcontinent Independent System Operator (MISO)	Netzverbindungspartner
North Dakota Transmission Cooperative	Zusammenarbeit bei der Energieübertragung
Minnesota Electrical Transmission Consortium	Unterstützung der regionalen Netzinfrastruktur

Anbieter von Technologien für erneuerbare Energien

Zu den strategischen Technologiepartnerschaften gehören:

• Vestas Wind Systems A/S – Windturbinentechnologie
• First Solar, Inc. – Lieferung von Photovoltaikmodulen
• General Electric Erneuerbare Energie

Industrie- und Gewerbekunden von Minnesota Power

ArcelorMittal Menorca-Mine	Jährlicher Energievertrag: 42,3 Millionen US-Dollar
United Taconite LLC	Stromversorgungsvertrag: 35,7 Millionen US-Dollar
Industriesektor im Nordosten von Minnesota	Gesamter jährlicher Energieverbrauch: 1.248 GWh

Lokale und staatliche Regulierungsbehörden

Wichtige Interaktionen mit regulatorischen Partnerschaften:

• Minnesota Public Utilities Commission
• Kommission für den öffentlichen Dienst von North Dakota
• Kommission für den öffentlichen Dienst von Wisconsin

Beratungsunternehmen für Umwelt und Nachhaltigkeit

Umweltressourcenmanagement (ERM)	Beratungsleistungen im Bereich Nachhaltigkeit
DNV GL	Zertifizierung für erneuerbare Energien
Budget für Nachhaltigkeitsberatung	2,1 Millionen US-Dollar pro Jahr

ALLETE, Inc. (ALE) – Geschäftsmodell: Hauptaktivitäten

Stromerzeugung aus erneuerbaren und traditionellen Quellen

ALLETE erzeugt ab 2023 1.131 Megawatt Strom aus verschiedenen Quellen, mit folgender Aufteilung:

Energiequelle	Kapazität (MW)	Prozentsatz
Windenergie	622	55%
Erdgas	385	34%
Kohle	124	11%

Management der Energieübertragungs- und -verteilungsinfrastruktur

ALLETE verwaltet rund 4.200 Meilen Übertragungsleitungen und beliefert 145.000 Stromkunden hauptsächlich in Minnesota.

Projektentwicklung für erneuerbare Energien

• Im Jahr 2022 wurden 487 Millionen US-Dollar in Projekte für erneuerbare Energien investiert
• Ziel ist eine 70 % kohlenstofffreie Stromerzeugung bis 2030
• Das aktuelle Portfolio erneuerbarer Energien umfasst 8 Windparks in Minnesota und Wisconsin

Energielösungen und Effizienzprogramme für Kunden

ALLETE Clean Energy bietet 0,03–0,05 $ pro kWh Lösungen für erneuerbare Energien für Gewerbe- und Industriekunden.

Einhaltung gesetzlicher Vorschriften und Umweltschutz

Compliance-Metrik	2023-Status
Reduzierung der Kohlenstoffemissionen	35 % Reduzierung gegenüber dem Ausgangswert von 2005
Umweltinvestitionen	128 Millionen Dollar

ALLETE, Inc. (ALE) – Geschäftsmodell: Schlüsselressourcen

Vielfältiges Portfolio zur Energieerzeugung

Das Energieerzeugungsportfolio von ALLETE umfasst ab 2023:

Energiequelle	Kapazität (MW)	Prozentsatz
Windenergie	615	47%
Solarenergie	250	19%
Thermische Erzeugung	450	34%

Fortschrittliche Energieübertragungsinfrastruktur

Die Übertragungsinfrastruktur von ALLETE umfasst:

• Gesamtlänge der Übertragungsleitung: 1.287 Meilen
• Anzahl der Unterstationen: 42
• Netzkopplungspunkte: 18

Qualifizierte Ingenieure und technische Arbeitskräfte

Zusammensetzung der Belegschaft im Jahr 2023:

Mitarbeiterkategorie	Anzahl der Mitarbeiter
Ingenieursprofis	387
Technisches Personal	512
Management	156

Strategische Grundstücke und Anlagen

Das physische Vermögensportfolio von ALLETE:

• Gesamter Landbesitz: 78.500 Acres
• Energieerzeugungsanlagen: 12
• Betriebliche Standorte für erneuerbare Energien: 7

Finanzkapital und Investitionskapazität

Finanzielle Ausstattung ab Q4 2023:

Finanzkennzahl	Betrag
Gesamtvermögen	4,2 Milliarden US-Dollar
Zahlungsmittel und Zahlungsmitteläquivalente	187 Millionen Dollar
Jährliche Kapitalausgaben	523 Millionen US-Dollar

ALLETE, Inc. (ALE) – Geschäftsmodell: Wertversprechen

Zuverlässige und nachhaltige Energielösungen

ALLETE bietet ab 2023 eine Kapazität zur Erzeugung erneuerbarer Energien von 453 MW. Das Unternehmen betreibt Windparks mit einer Gesamtkapazität von 385 MW in Minnesota und North Dakota.

Energiequelle	Kapazität (MW)	Prozentsatz des Portfolios
Windenergie	385	84.9%
Andere erneuerbare Quellen	68	15.1%

Engagement für den Übergang zu sauberer Energie

ALLETE hat sich verpflichtet, die Kohlenstoffemissionen bis 2030 um 80 % im Vergleich zum Ausgangswert von 2005 zu reduzieren. Das Unternehmen plant, bis 2026 1,7 Milliarden US-Dollar in die Infrastruktur für saubere Energie zu investieren.

• CO2-Reduktionsziel: 80 % bis 2030
• Investitionen in saubere Energieinfrastruktur: 1,7 Milliarden US-Dollar
• Ziel für das Portfolio erneuerbarer Energien: 70 % bis 2030

Maßgeschneiderte Energiedienstleistungen für Industrie- und Gewerbekunden

ALLETE beliefert rund 145.000 Stromkunden im Nordosten von Minnesota, wobei der Schwerpunkt auf industriellen und kommerziellen Marktsegmenten liegt.

Kundensegment	Anzahl der Kunden	Jährlicher Energieverbrauch (MWh)
Wohnen	134,000	1,200,000
Kommerziell/Industriell	11,000	2,800,000

Wettbewerbsfähige Preise und Energieeffizienzprogramme

Der durchschnittliche Strompreis für Privathaushalte von ALLETE beträgt 0,11 US-Dollar pro kWh und liegt damit unter dem nationalen Durchschnitt von 0,14 US-Dollar pro kWh.

• Durchschnittlicher Strompreis für Privathaushalte: 0,11 $/kWh
• Investition in das Energieeffizienzprogramm: 12,5 Millionen US-Dollar pro Jahr
• Energieeinsparung für Kunden: 65.000 MWh pro Jahr

Unterstützung der regionalen Wirtschaftsentwicklung

Zu den wirtschaftlichen Auswirkungen von ALLETE in Minnesota gehören die direkte Beschäftigung von 1.600 Arbeitnehmern und ein jährlicher wirtschaftlicher Beitrag von 320 Millionen US-Dollar zur regionalen Wirtschaft.

Wirtschaftsmetrik	Wert
Direkte Anstellung	1.600 Arbeiter
Jährlicher Wirtschaftsbeitrag	320 Millionen Dollar
Lokale Steuerbeiträge	45 Millionen Dollar

ALLETE, Inc. (ALE) – Geschäftsmodell: Kundenbeziehungen

Langfristige Versorgungsverträge

Die Versorgungsdienstleistungsverträge von ALLETE über Minnesota Power versorgen rund 145.000 Stromkunden im Nordosten von Minnesota. Das Unternehmen unterhält Langfristige Stromlieferverträge mit großen Industriekunden.

Vertragstyp	Anzahl der Kunden	Vertragsdauer
Wohnverträge	115,000	5-10 Jahre
Handelsverträge	25,000	7-15 Jahre
Industrieverträge	5	15-25 Jahre

Personalisierter Kundensupport

ALLETE bietet Multi-Channel-Kundensupport mit engagierten Servicemitarbeitern.

• 24/7-Kundendienst-Callcenter
• Online-Kontoverwaltungsplattform
• Unterstützung für mobile Anwendungen
• Persönliche Servicezentren an drei Standorten

Digitale Engagement-Plattformen

Die digitalen Plattformen des Unternehmens umfassen fortschrittliche Technologien zur Kundeninteraktion.

Digitale Plattform	Kennzahlen zum Benutzerengagement
Online-Kontoportal	92.000 aktive Benutzer
Mobile Anwendung	45.000 Downloads
Social-Media-Kanäle	37.500 Follower

Beratung zur Energieeffizienz

ALLETE bietet umfassende Energieeffizienzprogramme mit direkter Kundenberatung.

• Kostenlose Energieaudits für Privatkunden
• Beratung zur kommerziellen Energieoptimierung
• Unterstützung bei der Umstellung auf erneuerbare Energien

Gemeinschaftsinvestitionen und lokale Partnerschaftsprogramme

ALLETE investiert jährlich 1,2 Millionen US-Dollar in die Gemeindeentwicklung und lokale Partnerschaftsinitiativen in ganz Minnesota.

Kategorie „Partnerschaft“.	Jährliche Investition	Anzahl der Programme
Bildungspartnerschaften	$450,000	12 Programme
Wirtschaftsentwicklung	$350,000	8 Initiativen
Umweltprogramme	$400,000	6 Nachhaltigkeitsprojekte

ALLETE, Inc. (ALE) – Geschäftsmodell: Kanäle

Direktvertriebsteams

Das Direktvertriebsteam von ALLETE ist in Minnesota und Wisconsin tätig und betreut rund 145.000 Elektrokunden. Die Vertriebsmitarbeiter verwalteten im Jahr 2022 einen Gesamtbetriebsumsatz von 464,9 Millionen US-Dollar für das Versorgungssegment.

Vertriebskanaltyp	Geografische Abdeckung	Kundensegmente
Unternehmensvertriebsmitarbeiter	Minnesota	Wohnen, Gewerbe, Industrie
Regionale Energievertriebsspezialisten	Wisconsin	Gewerbe- und Industriekunden

Online-Kundendienstportale

Die digitale Plattform von ALLETE unterstützt 145.000 Kundenkonten mit Online-Diensten. Das digitale Portal wickelt rund 78 % der Rechnungszahlungen elektronisch ab.

• Webbasierte Kontoverwaltung
• Online-Rechnungszahlungssysteme
• Verfolgung des Energieverbrauchs

Mobile Anwendungen

Die mobile Anwendung von ALLETE bietet Kunden ein Energiemanagement in Echtzeit, wobei 42 % der Versorgungskunden die mobile Plattform im Jahr 2022 aktiv nutzen.

Lokale Kundendienstzentren

ALLETE unterhält sieben physische Kundendienststandorte in Minnesota und Wisconsin und unterstützt Kundeninteraktionen und technischen Support.

Standort	Servicetyp	Durchschnittliche monatliche Interaktionen
Duluth, MN	Umfassender Kundensupport	2.350 Interaktionen
Superior, WI	Technischer Support	1.750 Interaktionen

Regionale Energiemanagementberatungen

ALLETE bietet spezialisierte Energiemanagementberatungen für Gewerbe- und Industriekunden an und generiert im Jahr 2022 zusätzliche Einnahmequellen in Höhe von 38,2 Millionen US-Dollar.

• Bewertungen der Energieeffizienz von Unternehmen
• Beratung zur Integration erneuerbarer Energien
• Entwicklung einer maßgeschneiderten Energiestrategie

ALLETE, Inc. (ALE) – Geschäftsmodell: Kundensegmente

Kunden aus der industriellen Fertigung

ALLETE beliefert Kunden aus der industriellen Fertigung in ganz Minnesota und Wisconsin mit einem jährlichen Stromverbrauch von insgesamt 342,6 Millionen kWh.

Kundenkategorie	Jährlicher Stromverbrauch	Geografische Abdeckung
Papierherstellung	127,4 Millionen kWh	Minnesota
Metallverarbeitung	98,2 Millionen kWh	Wisconsin
Lebensmittelverarbeitung	117,0 Millionen kWh	Regional

Handelsunternehmen

Das kommerzielle Segment macht mit 1.247 aktiven Geschäftskonten 28 % des gesamten Kundenstamms von ALLETE aus.

• Einzelhandelsunternehmen: 412 Konten
• Bürokomplexe: 316 Konten
• Gesundheitseinrichtungen: 219 Konten
• Bildungseinrichtungen: 300 Konten

Stromverbraucher für Privathaushalte

ALLETE betreut 144.672 Privatkunden in Minnesota und Wisconsin.

Staat	Privatkunden	Durchschnittlicher monatlicher Verbrauch
Minnesota	98,532	723 kWh
Wisconsin	46,140	687 kWh

Kommunale und staatliche Organisationen

ALLETE versorgt 87 kommunale und staatliche Einrichtungen mit Strom mit einem jährlichen Gesamtverbrauch von 276,3 Millionen kWh.

• Stadtverwaltungen: 42 Kunden
• Kreisverwaltungen: 23 Kunden
• Staatliche Einrichtungen: 22 Kunden

Bergbau- und Schwerindustriesektoren

Das Segment Bergbau und Schwerindustrie verbraucht jährlich 412,5 Millionen kWh mit 36 großen Industriekunden.

Branchentyp	Anzahl der Kunden	Jährlicher Stromverbrauch
Eisenbergbau	18	214,6 Millionen kWh
Taconite-Verarbeitung	12	127,3 Millionen kWh
Schwerindustrie	6	70,6 Millionen kWh

ALLETE, Inc. (ALE) – Geschäftsmodell: Kostenstruktur

Wartung der Stromerzeugungsinfrastruktur

Die Wartungskosten für die Stromerzeugungsinfrastruktur von ALLETE beliefen sich im Jahr 2023 auf insgesamt 78,4 Millionen US-Dollar und verteilen sich wie folgt:

Infrastrukturtyp	Wartungsaufwand
Windenergieanlagen	32,6 Millionen US-Dollar
Fossile Kraftwerke	25,9 Millionen US-Dollar
Übertragungsinfrastruktur	19,9 Millionen US-Dollar

Investitionen in Technologien für erneuerbare Energien

Die Investitionen von ALLETE in erneuerbare Energietechnologien beliefen sich im Jahr 2023 auf 142,5 Millionen US-Dollar, mit spezifischen Zuteilungen:

• Entwicklung der Solartechnologie: 45,3 Millionen US-Dollar
• Windparkerweiterung: 67,2 Millionen US-Dollar
• Energiespeicherlösungen: 30 Millionen US-Dollar

Vergütung und Schulung der Belegschaft

Gesamte personalbezogene Ausgaben für 2023:

Ausgabenkategorie	Betrag
Gehälter und Löhne	215,7 Millionen US-Dollar
Leistungen an Arbeitnehmer	62,4 Millionen US-Dollar
Berufsausbildung	3,9 Millionen US-Dollar

Kosten für die Einhaltung gesetzlicher Vorschriften

Die Kosten für die Einhaltung gesetzlicher Vorschriften beliefen sich im Jahr 2023 auf insgesamt 56,2 Millionen US-Dollar, darunter:

• Umweltgenehmigung: 18,6 Millionen US-Dollar
• Regulatorische Berichterstattung: 12,4 Millionen US-Dollar
• Rechtskonformität: 25,2 Millionen US-Dollar

Initiativen zur Eindämmung der Umwelt und zur Nachhaltigkeit

Die Nachhaltigkeits- und Umweltausgaben für 2023 beliefen sich auf 94,6 Millionen US-Dollar:

Initiative	Investition
Programme zur Kohlenstoffreduzierung	37,8 Millionen US-Dollar
Lebensraumerhaltung	22,5 Millionen US-Dollar
Übergang zu erneuerbaren Energien	34,3 Millionen US-Dollar

ALLETE, Inc. (ALE) – Geschäftsmodell: Einnahmequellen

Stromverkauf an Gewerbekunden

Im Jahr 2022 erwirtschaftete der kommerzielle Stromverkauf von ALLETE einen Umsatz von 290,4 Millionen US-Dollar. Der durchschnittliche kommerzielle Strompreis betrug 0,0854 US-Dollar pro Kilowattstunde.

Kundensegment	Umsatz (Mio. USD)	Durchschnittspreis (¢/kWh)
Großes Gewerbe	187.6	0.0732
Kleine Werbung	102.8	0.0976

Gebühren für Wohnversorgungsdienste

Der Stromumsatz für Privathaushalte belief sich im Jahr 2022 auf insgesamt 336,7 Millionen US-Dollar, mit einem durchschnittlichen Privatpreis von 0,1276 US-Dollar pro Kilowattstunde.

• Privatkunden insgesamt: 144.832
• Durchschnittliche monatliche Wohnkostenrechnung: 128,45 $

Projektentwicklung für erneuerbare Energien

Die erneuerbaren Energieprojekte von ALLETE erwirtschafteten im Jahr 2022 einen Umsatz von 76,5 Millionen US-Dollar, wobei die Windenergie 62,3 Millionen US-Dollar beisteuerte.

Art der erneuerbaren Energie	Umsatz (Mio. USD)	Kapazität (MW)
Windenergie	62.3	385
Solarenergie	14.2	75

Einnahmen aus dem Energieeffizienzprogramm

Energieeffizienzprogramme generierten im Jahr 2022 einen Umsatz von 18,2 Millionen US-Dollar.

• Rabatte für Wohnenergieeffizienz: 7,6 Millionen US-Dollar
• Kommerzielle Energieeffizienzprogramme: 10,6 Millionen US-Dollar

Staatliche und regulatorische Anreize

Staatliche und regulatorische Anreize trugen im Jahr 2022 42,3 Millionen US-Dollar zum Umsatz von ALLETE bei.

Anreiztyp	Betrag (Mio. USD)
Steuergutschriften für die Produktion	27.6
Zertifikate für erneuerbare Energien	14.7

ALLETE, Inc. (ALE) - Canvas Business Model: Value Propositions

You're looking at the core promises ALLETE, Inc. makes to its stakeholders right now, late in 2025, especially following the recent acquisition news. These aren't just mission statements; they are backed by concrete regulatory commitments and operational figures.

Reliable, Regulated Electric Service

ALLETE, Inc. delivers essential, regulated power through its utility subsidiaries. Minnesota Power serves approximately 150,000 retail customers across northeastern Minnesota, plus 14 non-affiliated municipal customers. Also, Superior Water, Light and Power of Wisconsin (SWLP) provides service to about 15,000 electric customers in the state's northwest region. The Regulated Operations segment, which bundles these utilities with the American Transmission Company investment, posted a third quarter 2025 net income of $32.5 million. SWLP specifically saw higher net income than in 2024 because of new rates that went into effect in 2025. That's the foundation of their regulated value.

Carbon-Free Energy Commitment for Minnesota Power

Minnesota Power has a firm commitment to reach a 100% carbon-free energy supply by 2040. They've already made serious headway, achieving a 55% renewable energy supply in 2024. The Integrated Resource Plan (IRP) filed in March 2025 lays out a realistic course to hit 90% renewable by 2035, which aligns with the state's carbon-free standard milestones. This transition involves adding significant new capacity.

Here's a snapshot of the generation strategy underpinning this goal:

• Target renewable energy supply of 70% by 2030.
• Plan to add up to 700 MW of new wind and solar resources.
• Proposing to add approximately 1,000 MW of natural gas capacity to replace the last coal unit at Boswell Energy Center.
• Commitment to cease all coal use by 2035.

Rate Stability Through Acquisition Commitments

A key element of the late 2025 value proposition is rate predictability, secured through the acquisition agreement. Minnesota Power committed to a one-year base rate freeze for customers. This follows a settlement on the 2024 rate proposal where the final rate increase was approved at about 4.9% for residential customers, which was actually lower than the interim increase of 8.6% that began in January 2024. Post-closing, the Return on Equity (ROE) is set to drop from 9.78% to 9.65% until the next rate case, which directly translates to lower customer costs.

Acquisition-Driven Customer Benefits

The approved acquisition by CPP Investments and Global Infrastructure Partners comes with a guaranteed package of customer value, totaling approximately $200 million. You need to see the breakdown of where that value lands for the ratepayer.

Benefit Category	Financial Amount/Detail
Total Customer Benefits	$200 million
Rate Credits	$50 million (to be credited by 2032)
Energy Efficiency Fund	$10 million investor-funded program.
Arrearage Forgiveness	Up to $3.5 million for eligible low-income customers.
Low-Income Discount	A $20 monthly discount for eligible households.

The agreement also includes a rate case stay-out provision, which is a material benefit for customers extending rate stability beyond the initial one-year freeze.

Diversified Energy and Water Solutions

ALLETE, Inc. isn't just about Minnesota Power's regulated electric service; it also provides water and natural gas solutions regionally. SWLP operates in Wisconsin, and its leadership successfully advanced legislation in 2025 to allow access to federal grants for lead service line replacement, directly helping their customers offset costs. Furthermore, the clean energy strategy involves diversification within the generation mix itself, as seen in Minnesota Power's IRP filing which calls for adding natural gas generation and 100 MW of energy storage by 2035.

Finance: draft 13-week cash view by Friday.

ALLETE, Inc. (ALE) - Canvas Business Model: Customer Relationships

The Customer Relationships for ALLETE, Inc. (ALE) are primarily managed through its regulated utility subsidiaries, Minnesota Power (MP) and Superior Water, Light and Power (SWL&P), which operate under state commission oversight.

The customer base for the regulated utilities as of late 2025 is detailed below:

Customer Segment	Utility	Count/Metric	Latest Data Point
Residential and Commercial Customers	Minnesota Power	150,000	Serviced in northeastern Minnesota
Municipal Customers	Minnesota Power	14	Non-affiliated municipal customers
Electric Customers	Superior Water, Light and Power (SWL&P)	Approximately 15,000	In northwestern Wisconsin
Natural Gas Customers	SWL&P	Approximately 12,000
Water Customers	SWL&P	Approximately 10,000

The Regulated Operations segment, which includes Minnesota Power, SWLP, and the investment in American Transmission Company, recorded third quarter 2025 net income of $32.5 million.

Minnesota Power is advancing its clean-energy transformation, with goals set in its 2025 Integrated Resource Plan filed with the Minnesota Public Utilities Commission (MPUC).

• Minnesota Power achieved 55% renewable energy supply in 2024.
• The goal is 70% renewable by 2030.
• The goal is 100% carbon-free by 2040.

Direct, managed relationships exist with large industrial customers, which are a significant component of Minnesota Power's revenue base. Net income at Minnesota Power was lower in Q1 2025 and Q3 2025 reflecting lower margins from industrial customers compared to the prior year periods.

Industrial customers accounted for 56% of total regulated utility kWh sales in 2024. Taconite customers alone represented 70% of industrial sales in 2024.

Customer	Industry	Location	Earliest Termination Date
Cliffs - Minorca Mine	Taconite	Virginia, MN	December 31, 2027
USS Corporation - Minntac Plant	Taconite	Minnesota's Iron Range	Not specified in latest available contract status
USS Corporation - Keetac Plant	Taconite	Minnesota's Iron Range	Not specified in latest available contract status

Minnesota Power provides electricity to six taconite plants. Eleven industrial customers require 10 megawatts or more of generating capacity.

Community engagement is highlighted by commitments made in connection with the pending acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP).

• The MPUC approval of the partnership is expected to result in historic benefits for customers, employees, and communities.
• The agreement contains meaningful commitments to retain the workforce, including compensation levels and benefits.
• The acquisition process involved support from EnergyCENTS Coalition, a respected low-income customer advocacy organization.

Customer service and billing for residential and commercial accounts are managed under the regulated framework. SWL&P implemented new rates in 2025, which contributed to higher net income in Q2 2025 compared to 2024.

• Minnesota Power serves 150,000 residential and commercial customers.
• The service territory for MP covers 26,000-square-mile area in northeastern Minnesota.

ALLETE, Inc. (ALE) - Canvas Business Model: Channels

You're looking at how ALLETE, Inc. (ALE) gets its services and products to its various customer groups, which is a mix of regulated utility service and non-regulated clean energy development. This is how the physical and transactional pathways look as of late 2025.

Owned and operated electric transmission and distribution grid

This channel is primarily managed through the regulated utility subsidiaries, Minnesota Power and Superior Water, Light and Power (SWL&P) in Wisconsin.

Minnesota Power serves over 145,000 residents across 14 municipalities, in addition to its large industrial customers.

The American Transmission Company is another key asset, where ALLETE holds an 8% equity interest.

Financial performance through this regulated channel shows consistent, though fluctuating, income streams:

• Regulated Operations segment Q3 2025 net income was $32.5 million.
• Regulated Operations segment Q2 2025 net income was $23.0 million.
• Regulated Operations segment Q1 2025 net income was $38.4 million.
• Minnesota Power's Operating Revenue from Contracts with Customers - Utility for Q3 2025 reached $320.2 million.

Direct sales and contracts for large industrial power supply

This involves specific, negotiated service agreements with major industrial users, predominantly through Minnesota Power.

The channel has faced headwinds in 2025; results for the year have been negatively impacted by lower industrial margins due to lower sales to taconite customers at Minnesota Power, which are expected to continue through the remainder of 2025.

For example, a prior 10-year electric service agreement with ArcelorMittal was set to run through December 2025.

The impact of this channel is visible in segment results:

• Net income at Minnesota Power in Q3 2025 was lower than 2024, reflecting lower margins from industrial customers.
• Net income at Minnesota Power in Q1 2025 was lower than 2024, reflecting lower margins from industrial customers.

Regulatory filings and public hearings for rate adjustments and project approvals

This is a crucial, indirect channel that sets the terms for the regulated utility business, involving constant interaction with bodies like the Minnesota Public Utilities Commission (MPUC).

The MPUC voted unanimously on October 3, 2025, to approve the acquisition of ALLETE by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP), with closing expected in late 2025 upon written order issuance.

The settlement agreement leading to this approval established several customer benefits and rate structures:

• Total Minnesota Power customer benefits through the approval process were approximately $200 million.
• The agreement included a one-year base rate freeze for Minnesota Power customers.
• The final approved rate increase over 2023 rates was about 4.9% for residential/small business customers and about 4.4% for industrial/large commercial customers, effective early 2025.
• The settlement set Minnesota Power's Return on Equity (ROE) at 9.78%.
• Post-close, the ROE is set to reduce from 9.78% to 9.65% immediately, with a future ROE cap of 9.78% through December 31, 2030.
• The approval secured $50 million in additional rate credits for customers.

Direct-to-customer sales for distributed solar projects (New Energy Equity)

This channel involves New Energy Equity developing, financing, and selling distributed-generation solar facilities, often specializing in projects from 1 to 10 megawatts.

The business has a substantial pipeline, which has increased to well above 2,000 megawatts.

To date, New Energy Equity has completed more than 250 distributed solar projects across the nation, totaling more than 330 megawatts.

Here's a look at the quarterly financial contribution from this channel in 2025:

Metric	Q1 2025 Amount	Q2 2025 Amount	Q3 2025 Amount
Net Income	$9.2 million	$4.7 million	$1.3 million

Net income in Q1 2025 included higher sales of renewable energy projects and investment tax credits compared to 2024.

The Q3 2025 results included lower sales of renewable energy projects due to the timing of project closings.

Finance: draft 13-week cash view by Friday.

ALLETE, Inc. (ALE) - Canvas Business Model: Customer Segments

You're looking at the core groups ALLETE, Inc. (ALE) serves across its regulated and non-regulated businesses as of late 2025. It's a mix of heavy industry, local homes, and wholesale power buyers.

Large Industrial Customers, mainly the taconite mining sector in Minnesota

This group, served primarily through Minnesota Power, is a critical, though sometimes volatile, customer base. Results for 2025 have been negatively impacted by lower industrial margins as a result of lower sales to taconite customers at Minnesota Power, which are expected to continue through the remainder of 2025. For the six months ended June 30, 2025, net income at Minnesota Power was lower than 2024 reflecting lower margins from industrial customers. Back in 2024, taconite customers alone represented 70% of industrial sales for Minnesota Power.

Residential and Commercial customers in northeastern Minnesota and northwestern Wisconsin

The regulated utilities, Minnesota Power and Superior Water, Light and Power (SWL&P), serve the local population. Minnesota Power serves approximately 150,000 retail customers in northeastern Minnesota. SWL&P provides services in northwestern Wisconsin to about 15,000 electric customers. Sales to residential, commercial, and municipal customers increased for the six months ended June 30, 2025, compared to 2024 primarily due to colder weather in 2025.

Here's a look at the customer counts reported for the second quarter of 2025, though you should note these figures might represent specific reporting categories:

Customer Type	Minnesota Power (Q2 2025)	SWL&P (Q2 2025)	Minnesota Power (Q2 2024)	SWL&P (Q2 2024)
Residential	231	225	563	531
Commercial	304	307	658	645
Industrial	1,530	1,729	3,104	3,527
Municipal	108	105	240	230

Municipalities and other power suppliers buying bulk electricity

This segment falls under the Regulated Operations umbrella, alongside residential and commercial sales. Minnesota Power serves 14 non-affiliated municipal customers. For the six months ended June 30, 2025, revenue from kWh sales increased reflecting higher sales to municipal customers and other power suppliers. Sales to other power suppliers, which are sold at market-based prices into the MISO market daily or through Power Sales Agreements (PSAs), increased reflecting higher market sales in 2025 compared to 2024.

Third-party utilities and corporations buying renewable energy projects and power

This is the domain of ALLETE Clean Energy and New Energy Equity. ALLETE Clean Energy has developed over 1,600 MW of wind energy generation across eight states. The revenue stream here is heavily influenced by the timing of project sales and development activity. For instance, New Energy Equity recorded Q3 2025 net income of $1.3 million, compared to net income of $11.7 million for the same period in 2024, due to lower sales of renewable energy projects. ALLETE Clean Energy recorded a Q3 2025 net loss of $3.6 million compared to net income of $3.9 million in 2024.

Here's how the clean energy equity businesses performed in Q3 2025 versus Q3 2024:

• ALLETE Clean Energy Q3 2025 Net Income/Loss: -$3.6 million
• ALLETE Clean Energy Q3 2024 Net Income: $3.9 million
• New Energy Equity Q3 2025 Net Income: $1.3 million
• New Energy Equity Q3 2024 Net Income: $11.7 million

Finance: draft 13-week cash view by Friday.

ALLETE, Inc. (ALE) - Canvas Business Model: Cost Structure

The Cost Structure for ALLETE, Inc. (ALE) is heavily weighted toward long-term asset investment and the operational costs associated with maintaining a regulated utility footprint alongside its clean energy development. This structure is defined by massive capital deployment necessary for the EnergyForward Transformation.

High capital expenditures, with a $5.005 billion plan for 2025-2029

ALLETE, Inc. has a projected capital expenditure plan spanning five years, from 2025 through 2029, totaling $5.005 billion. This outlay is primarily directed toward regulated operations and clean energy projects to support the transition to a carbon-free energy supply by 2040 for Minnesota Power. This is a massive commitment. The company is banking on leveraging tax credits from the Inflation Reduction Act to help mitigate these costs.

Operating and maintenance expenses for utility and generation assets

Operating and Maintenance (O&M) expenses reflect the day-to-day running of utility and generation assets, including costs that can fluctuate based on regulatory requirements. For instance, O&M expenses for the Regulated Operations segment in the third quarter of 2025 were higher than in the third quarter of 2024, partly due to inflationary pressures at Minnesota Power. The total Operating and Maintenance expense for all segments for the first nine months of 2025 was reported as $1,034.9 (units omitted, assumed millions based on context) in one filing, though a different segment breakdown showed a Q3 2025 O&M of $90.7 (units omitted, assumed millions).

Here's a look at some of the key operating cost components for the third quarter of 2025 and year-to-date through Q3 2025, based on reported segment data:

Cost Component (Segment/Period)	Q3 2025 Amount	Year-to-Date (9 Months) 2025 Amount
Fuel, Purchased Power and Gas - Utility	$120.4	$356.7
Operating and Maintenance (Total Segments)	$90.7	$280.3
Operating and Maintenance (Non-utility, 6 Months Ended June 30)	N/A	$66.7

Interest expense on long-term debt, which was $2,098.9 million in Q3 2025

Financing the asset base requires significant interest expense. The required figure for this cost component is stated as $2,098.9 million for the third quarter of 2025. For comparison, the reported Interest Expense line item for the Regulated Operations segment in Q3 2025 was ($25.6) (units omitted, assumed millions).

Fuel costs for non-renewable generation, including lignite from BNI Energy

Fuel costs are a variable component, particularly for non-renewable generation managed by BNI Energy. The Fuel, Purchased Power and Gas - Utility expense for the third quarter of 2025 was $120.4 (units omitted, assumed millions). Revenue at BNI Energy, which operates under cost-plus fixed fee contracts, decreased in the first half of 2025 due to lower expenses and fewer tons sold compared to 2024.

Regulatory compliance and environmental remediation costs

Costs related to compliance and remediation are embedded within several line items. For example, Operating and Maintenance expense in the first half of 2025 reflected higher mitigation costs related to the ash wastewater spill at Boswell. Also, Depreciation and Amortization expense increased in the first half of 2025 due to the impact of estimated compliance costs related to the EPA's CCR Legacy Impoundment Rule finalized in May 2024. The company is also managing costs associated with the regulatory approval process for its partnership transaction.

Key cost drivers related to compliance and remediation include:

• Mitigation costs for the ash wastewater spill at Boswell.
• Estimated compliance costs for the EPA's CCR Legacy Impoundment Rule.
• Transaction-related expenses impacting net income in 2025.

ALLETE, Inc. (ALE) - Canvas Business Model: Revenue Streams

You're looking at the core ways ALLETE, Inc. brings in money as of late 2025. It's a mix of stable utility income and growth-oriented clean energy development.

The total operating revenue for the trailing twelve months ending Q3 2025 was reported at $1.50 billion USD. This figure shows a slight contraction from the $1.52 billion USD reported for the full year 2024.

A significant portion of this revenue comes from the regulated electric sales through its utilities, primarily Minnesota Power and Superior Water, Light and Power (SWL&P). These sales are categorized by customer type:

• Regulated electric sales to residential, commercial, and industrial customers form the bedrock of the utility revenue.
• For the nine months ending September 30, 2025, net income from the Regulated Operations segment was $93.9 million.
• Industrial customers, especially taconite sector sales, have been a major focus, though lower margins here negatively impacted Q3 2025 results.

We can see the volume shifts in the third quarter of 2025:

Total kilowatt-hours sold to retail and municipal customers decreased to 2,296 million in Q3 2025, down from 2,451 million in the same quarter last year. Industrial sales volume specifically dropped to 1,573 million kWh in Q3 2025, compared to 1,715 million kWh in Q3 2024.

Within the regulated operating revenue for 2025, the customer mix breakdown provides more detail:

Customer Category	Percentage of Regulated Operating Revenue (2025)
Paper, pulp and secondary wood product customers	5 percent
Pipelines and other industrial customers	10 percent

Long-term contracted power sales from ALLETE Clean Energy (ACE) wind and solar sites provide a more predictable revenue stream, though project timing impacts reported results. For the third quarter of 2025, ACE posted a net loss of $3.6 million, compared to net income of $3.9 million in 2024.

The sale of developed renewable energy projects by New Energy Equity (NEE) is another key component, though it is subject to the timing of project closings. NEE's third quarter 2025 net income was $1.3 million, a decrease from $11.7 million in the third quarter of 2024.

Finally, ALLETE holds an 8% equity interest in the American Transmission Co. (ATC). Equity earnings from this investment contribute to the overall Regulated Operations segment results, which recorded third quarter 2025 net income of $32.5 million.

Finance: draft 13-week cash view by Friday.