ALLETE, Inc. (ALE): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama dinámico de la transformación energética, Allete, Inc. (ALE) surge como una potencia estratégica, entrelazando la innovación renovable, la infraestructura sostenible y las soluciones centradas en el cliente. Al crear meticulosamente un lienzo de modelo de negocio integral que equilibra la destreza tecnológica con la administración ambiental, esta compañía de servicios públicos navega por el complejo ecosistema de energía con notable agilidad. Desde la generación eólica y solar hasta los servicios industriales personalizados, el modelo de Allete representa un plano convincente para las empresas de servicios públicos modernos que buscan armonizar el rendimiento económico con compromisos de energía limpia.

Allete, Inc. (ALE) - Modelo de negocios: asociaciones clave

Compañías de servicios públicos y redes eléctricas regionales

Allete se asocia con múltiples redes de servicios públicos regionales, que incluyen:

Operador de sistema independiente del Continente Midcontinente (MISO)	Socio de interconexión de la cuadrícula
Cooperativa de transmisión de Dakota del Norte	Colaboración de transmisión de energía
Consorcio de transmisión eléctrica de Minnesota	Soporte de infraestructura de cuadrícula regional

Proveedores de tecnología de energía renovable

Las asociaciones de tecnología estratégica incluyen:

• Vestas Wind Systems A/S - Tecnología de turbinas eólicas
• First Solar, Inc. - Suministro de panel fotovoltaico
• Energía renovable General Electric

Clientes industriales y comerciales de Minnesota Power

ArcelorMittal Minorca mina	Contrato de energía anual: $ 42.3 millones
United Taconite LLC	Acuerdo de suministro de energía: $ 35.7 millones
Noreste de sector industrial de Minnesota	Consumo total de energía anual: 1.248 GWH

Agencias reguladoras del gobierno local y estatal

Interacciones de asociación reguladora clave:

• Comisión de servicios públicos de Minnesota
• Comisión de Servicio Público de Dakota del Norte
• Comisión de Servicio Público de Wisconsin

Empresas de consultoría ambiental y de sostenibilidad

Gestión de recursos ambientales (ERM)	Servicios de consultoría de sostenibilidad
DNV GL	Certificación de energía renovable
Presupuesto de consultoría de sostenibilidad	$ 2.1 millones anualmente

Allete, Inc. (ALE) - Modelo de negocio: actividades clave

Generación de electricidad de fuentes renovables y tradicionales

Allete genera 1.131 megavatios de electricidad de diversas fuentes a partir de 2023, con el siguiente desglose:

Fuente de energía	Capacidad (MW)	Porcentaje
Energía eólica	622	55%
Gas natural	385	34%
Carbón	124	11%

Gestión de infraestructura de transmisión y distribución de energía

Allete administra aproximadamente 4,200 millas de líneas de transmisión y atiende a 145,000 clientes eléctricos principalmente en Minnesota.

Desarrollo del proyecto de energía renovable

• Invirtió $ 487 millones en proyectos de energía renovable en 2022
• Dirigido al 70% de generación de electricidad sin carbono para 2030
• La cartera renovable actual incluye 8 parques eólicos en Minnesota y Wisconsin

Soluciones de energía del cliente y programas de eficiencia

La energía limpia de Allete proporciona $ 0.03- $ 0.05 por kWh Soluciones de energía renovable a clientes comerciales e industriales.

Cumplimiento regulatorio y administración ambiental

Métrico de cumplimiento	Estado 2023
Reducción de emisiones de carbono	Reducción del 35% desde la línea de base de 2005
Inversiones ambientales	$ 128 millones

Allete, Inc. (ALE) - Modelo de negocio: recursos clave

Cartera diversa de generación de energía

La cartera de generación de energía de Allete a partir de 2023 incluye:

Fuente de energía	Capacidad (MW)	Porcentaje
Energía eólica	615	47%
Energía solar	250	19%
Generación térmica	450	34%

Infraestructura de transmisión de energía avanzada

La infraestructura de transmisión de Allete incluye:

• Longitud total de la línea de transmisión: 1,287 millas
• Recuento de subestaciones: 42
• Puntos de interconexión de cuadrícula: 18

Ingeniería especializada y fuerza laboral técnica

Composición de la fuerza laboral en 2023:

Categoría de empleado	Número de empleados
Profesionales de ingeniería	387
Personal técnico	512
Gestión	156

Activos estratégicos de tierras e instalaciones

Portafolio de activos físicos de Allete:

• Propiedad total de la tierra: 78,500 acres
• Instalaciones de generación de energía: 12
• Sitios operativos de energía renovable: 7

Capital financiero y capacidad de inversión

Recursos financieros a partir del cuarto trimestre 2023:

Métrica financiera	Cantidad
Activos totales	$ 4.2 mil millones
Equivalentes de efectivo y efectivo	$ 187 millones
Gastos de capital anuales	$ 523 millones

Allete, Inc. (ALE) - Modelo de negocio: propuestas de valor

Soluciones de energía confiables y sostenibles

Allete proporciona 453 MW de capacidad de generación de energía renovable a partir de 2023. La compañía opera parques eólicos con una capacidad total de 385 MW en Minnesota y Dakota del Norte.

Fuente de energía	Capacidad (MW)	Porcentaje de cartera
Energía eólica	385	84.9%
Otras fuentes renovables	68	15.1%

Compromiso con la transición de energía limpia

Allete se ha comprometido a reducir las emisiones de carbono en un 80% para 2030 en comparación con los niveles de referencia de 2005. La compañía planea invertir $ 1.7 mil millones en infraestructura de energía limpia hasta 2026.

• Objetivo de reducción de carbono: 80% para 2030
• Inversión de infraestructura de energía limpia: $ 1.7 mil millones
• Objetivo para cartera de energía renovable: 70% para 2030

Servicios de energía personalizados para clientes industriales y comerciales

Allete atiende a aproximadamente 145,000 clientes eléctricos en el noreste de Minnesota, con un enfoque en segmentos de mercado industrial y comercial.

Segmento de clientes	Número de clientes	Consumo anual de energía (MWH)
Residencial	134,000	1,200,000
Comercial/industrial	11,000	2,800,000

Programas de precios competitivos y eficiencia energética

La tasa de electricidad residencial promedio de Allete es de $ 0.11 por kWh, que está por debajo del promedio nacional de $ 0.14 por kWh.

• Tasa de electricidad residencial promedio: $ 0.11/kWh
• Inversión del programa de eficiencia energética: $ 12.5 millones anuales
• Ahorro de energía del cliente: 65,000 MWh por año

Apoyo económico regional

El impacto económico de Allete en Minnesota incluye empleo directo de 1.600 trabajadores y una contribución económica anual de $ 320 millones a la economía regional.

Métrica económica	Valor
Empleo directo	1.600 trabajadores
Contribución económica anual	$ 320 millones
Contribuciones fiscales locales	$ 45 millones

Allete, Inc. (ALE) - Modelo de negocios: relaciones con los clientes

Contratos de servicio de servicios públicos a largo plazo

El servicio de servicios públicos de Allete contratos a través de Minnesota Power sirve a aproximadamente 145,000 clientes eléctricos en el noreste de Minnesota. La empresa mantiene Acuerdos de suministro de energía a largo plazo con importantes clientes industriales.

Tipo de contrato	Número de clientes	Duración del contrato
Contratos residenciales	115,000	5-10 años
Contratos comerciales	25,000	7-15 años
Contratos industriales	5	15-25 años

Atención al cliente personalizada

Allete proporciona atención al cliente multicanal con representantes de servicios dedicados.

• Centro de llamadas de servicio al cliente 24/7
• Plataforma de gestión de cuentas en línea
• Soporte de aplicaciones móviles
• Centros de servicio en persona en 3 ubicaciones

Plataformas de compromiso digital

Las plataformas digitales de la compañía incluyen tecnologías avanzadas de interacción con el cliente.

Plataforma digital	Métricas de participación del usuario
Portal de cuentas en línea	92,000 usuarios activos
Aplicación móvil	45,000 descargas
Canales de redes sociales	37,500 seguidores

Consulta de eficiencia energética

Allete ofrece programas integrales de eficiencia energética con servicios directos de consulta del cliente.

• Auditorías de energía gratis para clientes residenciales
• Consultoría de optimización de energía comercial
• Soporte de transición de energía renovable

Inversión comunitaria y programas de asociación local

Allete invierte $ 1.2 millones anuales en desarrollo comunitario e iniciativas de asociación local en Minnesota.

Categoría de asociación	Inversión anual	Número de programas
Asociaciones educativas	$450,000	12 programas
Desarrollo económico	$350,000	8 iniciativas
Programas ambientales	$400,000	6 proyectos de sostenibilidad

Allete, Inc. (ALE) - Modelo de negocio: canales

Equipos de ventas directos

El equipo de ventas directas de Allete opera en Minnesota y Wisconsin, atendiendo a aproximadamente 145,000 clientes eléctricos. La fuerza de ventas gestionó $ 464.9 millones en ingresos operativos totales para el segmento de servicios públicos en 2022.

Tipo de canal de ventas	Cobertura geográfica	Segmentos de clientes
Representantes de ventas corporativas	Minnesota	Residencial, comercial, industrial
Especialistas en ventas de energía regional	Wisconsin	Clientes comerciales e industriales

Portales de servicio al cliente en línea

La plataforma digital de Allete admite 145,000 cuentas de clientes con servicios en línea. El portal digital procesa aproximadamente el 78% de los pagos de facturas electrónicamente.

• Administración de cuentas basada en la web
• Sistemas de pago de facturas en línea
• Seguimiento de uso de energía

Aplicaciones móviles

La aplicación móvil de Allete proporciona administración de energía en tiempo real para los clientes, con el 42% de los clientes de servicios públicos que utilizan activamente la plataforma móvil en 2022.

Centros de servicio al cliente local

Allete mantiene 7 ubicaciones físicas de servicio al cliente en Minnesota y Wisconsin, apoyando las interacciones y el soporte técnico de los clientes.

Ubicación	Tipo de servicio	Interacciones mensuales promedio
Duluth, MN	Atención al cliente integral	2.350 interacciones
Superior, WI	Apoyo técnico	1.750 interacciones

Consultas regionales de gestión de energía

Allete ofrece consultas especializadas de gestión de energía para clientes comerciales e industriales, generando $ 38.2 millones en fuentes de ingresos adicionales en 2022.

• Evaluaciones empresariales de eficiencia energética
• Consultoría de integración de energía renovable
• Desarrollo de la estrategia energética personalizada

Allete, Inc. (ALE) - Modelo de negocio: segmentos de clientes

Clientes de fabricación industrial

Allete atiende a clientes de fabricación industrial en Minnesota y Wisconsin con consumo de electricidad por un total de 342.6 millones de kWh anuales.

Categoría de cliente	Uso anual de electricidad	Cobertura geográfica
Fabricación de papel	127.4 millones de kWh	Minnesota
Procesamiento de metales	98.2 millones de kWh	Wisconsin
Procesamiento de alimentos	117.0 millones de kWh	Regional

Empresas comerciales

El segmento comercial representa el 28% de la base total de clientes de Allete con 1,247 cuentas comerciales activas.

• Establecimientos minoristas: 412 cuentas
• Complejos de oficinas: 316 cuentas
• Instalaciones de atención médica: 219 cuentas
• Instituciones educativas: 300 cuentas

Consumidores de electricidad residencial

Allete atiende a 144,672 clientes residenciales en Minnesota y Wisconsin.

Estado	Clientes residenciales	Consumo mensual promedio
Minnesota	98,532	723 kWh
Wisconsin	46,140	687 kWh

Organizaciones municipales y gubernamentales

Allete proporciona electricidad a 87 entidades municipales y gubernamentales con un consumo anual total de 276.3 millones de kWh.

• Gobierno de la ciudad: 42 clientes
• Administraciones del condado: 23 clientes
• Instalaciones estatales: 22 clientes

Sectores de la industria minera y pesada

El segmento de la industria minera y pesada consume 412.5 millones de kWh anuales con 36 clientes industriales principales.

Tipo de industria	Número de clientes	Consumo anual de electricidad
Minería de hierro	18	214.6 millones de kWh
Procesamiento de taconita	12	127.3 millones de kWh
Fabricación pesada	6	70.6 millones de kWh

Allete, Inc. (ALE) - Modelo de negocio: Estructura de costos

Mantenimiento de infraestructura de generación de energía

Los costos de mantenimiento de infraestructura de generación de energía de Allete para 2023 totalizaron $ 78.4 millones, con un desglose de la siguiente manera:

Tipo de infraestructura	Gasto de mantenimiento
Instalaciones de energía eólica	$ 32.6 millones
Centrales fósiles	$ 25.9 millones
Infraestructura de transmisión	$ 19.9 millones

Inversiones de tecnología de energía renovable

Las inversiones de tecnología de energía renovable de Allete en 2023 alcanzaron $ 142.5 millones, con asignaciones específicas:

• Desarrollo de tecnología solar: $ 45.3 millones
• Expansión del parque eólico: $ 67.2 millones
• Soluciones de almacenamiento de energía: $ 30 millones

Compensación y capacitación de la fuerza laboral

Gastos totales relacionados con la fuerza laboral para 2023:

Categoría de gastos	Cantidad
Salarios y salarios	$ 215.7 millones
Beneficios para empleados	$ 62.4 millones
Capacitación profesional	$ 3.9 millones

Gastos de cumplimiento regulatorio

Los costos de cumplimiento regulatorio de Allete en 2023 totalizaron $ 56.2 millones, que incluyen:

• Permiso ambiental: $ 18.6 millones
• Informes regulatorios: $ 12.4 millones
• Cumplimiento legal: $ 25.2 millones

Iniciativas de mitigación ambiental y sostenibilidad

La sostenibilidad y los gastos ambientales para 2023 ascendieron a $ 94.6 millones:

Iniciativa	Inversión
Programas de reducción de carbono	$ 37.8 millones
Conservación del hábitat	$ 22.5 millones
Transición de energía renovable	$ 34.3 millones

Allete, Inc. (ALE) - Modelo de negocios: flujos de ingresos

Venta de electricidad a clientes comerciales

En 2022, las ventas de electricidad comercial de Allete generaron $ 290.4 millones en ingresos. La tarifa promedio de electricidad comercial fue de $ 0.0854 por kilovatio-hora.

Segmento de clientes	Ingresos ($ M)	Tasa promedio (¢/kWh)
Gran comercial	187.6	0.0732
Pequeño comercial	102.8	0.0976

Tarifas de servicio de servicios residenciales

Las ventas de electricidad residencial en 2022 totalizaron $ 336.7 millones, con una tarifa residencial promedio de $ 0.1276 por kilovatio-hora.

• Total de clientes residenciales: 144,832
• Promedio de la factura residencial mensual: $ 128.45

Desarrollo del proyecto de energía renovable

Los proyectos de energía renovable de Allete generaron $ 76.5 millones en ingresos para 2022, y la energía eólica contribuyó con $ 62.3 millones.

Tipo de energía renovable	Ingresos ($ M)	Capacidad (MW)
Energía eólica	62.3	385
Energía solar	14.2	75

Ingresos del programa de eficiencia energética

Los programas de eficiencia energética generaron $ 18.2 millones en ingresos para 2022.

• RECOBRACIONES DE EFICIENCIA ENERGÍA RESIDENCIALES: $ 7.6 millones
• Programas comerciales de eficiencia energética: $ 10.6 millones

Incentivos gubernamentales y regulatorios

Los incentivos gubernamentales y regulatorios contribuyeron con $ 42.3 millones a los ingresos de Allete en 2022.

Tipo de incentivo	Cantidad ($ m)
Créditos fiscales de producción	27.6
Certificados de energía renovable	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.