ALLETE, Inc. (ALE): Canvas du modèle commercial [Jan-2025 Mise à jour]

Dans le paysage dynamique de la transformation de l'énergie, Allete, Inc. (ALE) apparaît comme une puissance stratégique, tissant ensemble l'innovation renouvelable, les infrastructures durables et les solutions centrées sur le client. En fabriquant méticuleusement une toile complète du modèle commercial qui équilibre les prouesses technologiques avec une gestion de l'environnement, cette entreprise de services publics navigue dans l'écosystème énergétique complexe avec une agilité remarquable. De la génération éolienne et solaire aux services industriels sur mesure, le modèle d'Allete représente un plan convaincant pour les entreprises de services publics modernes cherchant à harmoniser les performances économiques avec des engagements énergétiques propres.

ALLETE, Inc. (ALE) - Modèle d'entreprise: partenariats clés

Sociétés de services publics et réseaux électriques régionaux

ALLETE s'associe à plusieurs réseaux de services publics régionaux, notamment:

Opérateur de systèmes indépendants du continent (MISO)	Partenaire d'interconnexion de la grille
Cooperative de transmission du Dakota du Nord	Collaboration de transmission de puissance
Consortium de transmission électrique du Minnesota	Support régional des infrastructures de grille

Fournisseurs de technologies d'énergie renouvelable

Les partenariats technologiques stratégiques comprennent:

• Vestas Wind Systems A / S - Technologie des éoliennes
• First Solar, Inc. - Supply à panneau photovoltaïque
• Énergie générale de renouvellement électrique

Les clients industriels et commerciaux du Minnesota Power

Mine arcelormittale	Contrat énergétique annuel: 42,3 millions de dollars
United Taconite LLC	Contrat d'alimentation électrique: 35,7 millions de dollars
Secteur industriel du nord-est du Minnesota	Consommation totale d'énergie annuelle: 1 248 GWh

Agences de réglementation du gouvernement local et des États

Interactions clés du partenariat réglementaire:

• Commission des services publics du Minnesota
• Commission de la fonction publique du Dakota du Nord
• Commission de la fonction publique du Wisconsin

Cabinets de conseil en environnement et en durabilité

Gestion des ressources environnementales (ERM)	Services de conseil en durabilité
DNV GL	Certification des énergies renouvelables
Budget de conseil en durabilité	2,1 millions de dollars par an

ALLETE, Inc. (ALE) - Modèle d'entreprise: activités clés

Production d'électricité à partir de sources renouvelables et traditionnelles

ALLETE génère 1 131 mégawatts d'électricité à partir de diverses sources à partir de 2023, avec la ventilation suivante:

Source d'énergie	Capacité (MW)	Pourcentage
Énergie éolienne	622	55%
Gaz naturel	385	34%
Charbon	124	11%

Gestion des infrastructures de transmission et de distribution de puissance

ALLETE gère environ 4 200 miles de lignes de transmission et dessert 145 000 clients électriques principalement au Minnesota.

Développement du projet d'énergie renouvelable

• A investi 487 millions de dollars dans des projets d'énergie renouvelable en 2022
• Ciblant 70% de production d'électricité sans carbone d'ici 2030
• Le portefeuille renouvelable actuel comprend 8 parcs éoliens à travers le Minnesota et le Wisconsin

Solutions d'énergie client et programmes d'efficacité

L'énergie propre ALLETE fournit 0,03 $ - 0,05 $ par kWh Solutions d'énergie renouvelable aux clients commerciaux et industriels.

Conformité réglementaire et gestion environnementale

Métrique de conformité	Statut 2023
Réduction des émissions de carbone	Réduction de 35% par rapport à la ligne de base 2005
Investissements environnementaux	128 millions de dollars

ALLETE, Inc. (ALE) - Modèle d'entreprise: Ressources clés

Portfolio de production d'énergie diversifiée

Le portefeuille de production d'énergie d'Allete en 2023 comprend:

Source d'énergie	Capacité (MW)	Pourcentage
Énergie éolienne	615	47%
Énergie solaire	250	19%
Génération thermique	450	34%

Infrastructure de transmission de puissance avancée

L'infrastructure de transmission d'Allete comprend:

• Longueur totale de la ligne de transmission: 1 287 miles
• Compte de sous-station: 42
• Points d'interconnexion de la grille: 18

Ingénierie qualifiée et main-d'œuvre technique

Composition de la main-d'œuvre en 2023:

Catégorie des employés	Nombre d'employés
Professionnels de l'ingénierie	387
Personnel technique	512
Gestion	156

Actifs terrestres et installations stratégiques

Portfolio d'actifs physiques d'Allete:

• Propriété totale des terres: 78 500 acres
• Installations de production d'électricité: 12
• Sites opérationnels des énergies renouvelables: 7

Capital financier et capacité d'investissement

Ressources financières au quatrième trimestre 2023:

Métrique financière	Montant
Actif total	4,2 milliards de dollars
Equivalents en espèces et en espèces	187 millions de dollars
Dépenses en capital annuelles	523 millions de dollars

ALLETE, Inc. (ALE) - Modèle d'entreprise: propositions de valeur

Solutions d'énergie fiables et durables

ALLETE offre 453 MW de capacité de production d'énergies renouvelables à partir de 2023. La société exploite des parcs éoliens d'une capacité totale de 385 MW dans le Minnesota et le Dakota du Nord.

Source d'énergie	Capacité (MW)	Pourcentage de portefeuille
Énergie éolienne	385	84.9%
Autres sources renouvelables	68	15.1%

Engagement à propre transition énergétique

ALLETE s'est engagé à réduire les émissions de carbone de 80% d'ici 2030 par rapport aux niveaux de référence 2005. La société prévoit d'investir 1,7 milliard de dollars dans des infrastructures d'énergie propre jusqu'en 2026.

• Cible de réduction du carbone: 80% d'ici 2030
• Investissement d'infrastructure d'énergie propre: 1,7 milliard de dollars
• Portfolio d'objectif pour les énergies renouvelables: 70% d'ici 2030

Services énergétiques personnalisés pour les clients industriels et commerciaux

ALLETE dessert environ 145 000 clients électriques dans le nord-est du Minnesota, en mettant l'accent sur les segments de marché industriels et commerciaux.

Segment de clientèle	Nombre de clients	Consommation d'énergie annuelle (MWH)
Résidentiel	134,000	1,200,000
Commercial / industriel	11,000	2,800,000

Programmes de tarification et d'efficacité énergétique compétitifs

Le taux d'électricité résidentiel moyen d'Allete est de 0,11 $ par kWh, ce qui est inférieur à la moyenne nationale de 0,14 $ par kWh.

• Taux d'électricité résidentiel moyen: 0,11 $ / kWh
• Investissement du programme d'efficacité énergétique: 12,5 millions de dollars par an
• Économies d'énergie du client: 65 000 MWh par an

Soutien au développement économique régional

L'impact économique d'Allete dans le Minnesota comprend un emploi direct de 1 600 travailleurs et une contribution économique annuelle de 320 millions de dollars à l'économie régionale.

Métrique économique	Valeur
Emploi direct	1 600 travailleurs
Contribution économique annuelle	320 millions de dollars
Contributions fiscales locales	45 millions de dollars

ALLETE, Inc. (ALE) - Modèle d'entreprise: relations avec les clients

Contrats de services de services publics à long terme

Les contrats de service utilitaire d'Allete via le Minnesota Power desservent environ 145 000 clients électriques dans le nord-est du Minnesota. La société maintient accords d'alimentation à long terme avec les principaux clients industriels.

Type de contrat	Nombre de clients	Durée du contrat
Contrats résidentiels	115,000	5-10 ans
Contrats commerciaux	25,000	7-15 ans
Contrats industriels	5	15-25 ans

Support client personnalisé

ALLETE fournit un support client multicanal avec des représentants de services dédiés.

• Centre d'appels de service client 24/7
• Plateforme de gestion des comptes en ligne
• Support d'application mobile
• Centres de services en personne dans 3 emplacements

Plates-formes de fiançailles numériques

Les plateformes numériques de l'entreprise comprennent des technologies d'interaction client avancées.

Plate-forme numérique	Métriques d'engagement des utilisateurs
Portail de compte en ligne	92 000 utilisateurs actifs
Application mobile	45 000 téléchargements
Canaux de médias sociaux	37 500 abonnés

Consultation de l'efficacité énergétique

ALLETE propose des programmes complets d'efficacité énergétique avec des services de consultation client directe.

• Audits d'énergie gratuits pour les clients résidentiels
• Conseil d'optimisation d'énergie commerciale
• Support de transition d'énergie renouvelable

Programmes d'investissement communautaire et de partenariat local

ALLETE investit 1,2 million de dollars par an dans le développement communautaire et les initiatives de partenariat local dans le Minnesota.

Catégorie de partenariat	Investissement annuel	Nombre de programmes
Partenariats éducatifs	$450,000	12 programmes
Développement économique	$350,000	8 initiatives
Programmes environnementaux	$400,000	6 projets de durabilité

ALLETE, Inc. (ALE) - Modèle d'entreprise: canaux

Équipes de vente directes

L'équipe de vente directe d'Allete opère dans le Minnesota et le Wisconsin, desservant environ 145 000 clients électriques. La force de vente a géré 464,9 millions de dollars de revenus d'exploitation totaux pour le segment des services publics en 2022.

Type de canal de vente	Couverture géographique	Segments de clientèle
Représentants commerciaux des entreprises	Minnesota	Résidentiel, commercial, industriel
Spécialistes régionaux des ventes d'énergie	Wisconsin	Clients commerciaux et industriels

Portails de service à la clientèle en ligne

La plate-forme numérique d'Allete prend en charge 145 000 comptes clients avec des services en ligne. Le portail numérique traite environ 78% des paiements de factures par voie électronique.

• Gestion de compte Web
• Systèmes de paiement de factures en ligne
• Suivi de la consommation d'énergie

Applications mobiles

L'application mobile d'Allete fournit une gestion d'énergie en temps réel pour les clients, avec 42% des clients de services publics utilisant activement la plate-forme mobile en 2022.

Centres de service à la clientèle locaux

ALLETE maintient 7 emplacements de service client physique à travers le Minnesota et le Wisconsin, en soutenant les interactions de clientèle sans rendez-vous et le support technique.

Emplacement	Type de service	Interactions mensuelles moyennes
Duluth, MN	Support client complet	2 350 interactions
Supérieur, wi	Support technique	1 750 interactions

Consultations régionales de gestion de l'énergie

ALLETE propose des consultations spécialisées de gestion de l'énergie pour les clients commerciaux et industriels, générant 38,2 millions de dollars de sources de revenus supplémentaires en 2022.

• Évaluations de l'efficacité énergétique de l'entreprise
• Conseil d'intégration d'énergie renouvelable
• Développement de stratégie énergétique personnalisée

ALLETE, Inc. (ALE) - Modèle d'entreprise: segments de clientèle

Clients de fabrication industrielle

ALLETE dessert des clients manufacturiers industriels à travers le Minnesota et le Wisconsin avec une consommation d'électricité totalisant 342,6 millions de kWh par an.

Catégorie client	Utilisation annuelle de l'électricité	Couverture géographique
Fabrication de papier	127,4 millions de kWh	Minnesota
Traitement des métaux	98,2 millions de kWh	Wisconsin
Transformation des aliments	117,0 millions de kWh	Régional

Entreprises commerciales

Le segment commercial représente 28% de la clientèle totale d'Allete avec 1 247 comptes commerciaux actifs.

• Établissements de vente au détail: 412 comptes
• Complexes de bureaux: 316 comptes
• Installations de soins de santé: 219 comptes
• Institutions éducatives: 300 comptes

Consommateurs d'électricité résidentielle

ALLETE dessert 144 672 clients résidentiels du Minnesota et du Wisconsin.

État	Clients résidentiels	Consommation mensuelle moyenne
Minnesota	98,532	723 kWh
Wisconsin	46,140	687 kWh

Organisations municipales et gouvernementales

ALLETE assure l'électricité à 87 entités municipales et gouvernementales avec une consommation annuelle totale de 276,3 millions de kWh.

• Gouvernements de la ville: 42 clients
• Administrations du comté: 23 clients
• Installations d'État: 22 clients

Secteurs industriels miniers et lourds

Le segment de l'industrie minière et lourde consomme 412,5 millions de kWh par an avec 36 clients industriels majeurs.

Type de l'industrie	Nombre de clients	Consommation d'électricité annuelle
Mine de fer	18	214,6 millions de kWh
Traitement de la taconite	12	127,3 millions de kWh
Fabrication lourde	6	70,6 millions de kWh

ALLETE, Inc. (ALE) - Modèle d'entreprise: Structure des coûts

Maintenance d'infrastructure de production d'électricité

Les coûts de maintenance de l'infrastructure de production d'électricité d'Allete pour 2023 ont totalisé 78,4 millions de dollars, avec une ventilation comme suit:

Type d'infrastructure	Frais de maintenance
Installations d'énergie éolienne	32,6 millions de dollars
Centrales fossiles	25,9 millions de dollars
Infrastructure de transmission	19,9 millions de dollars

Investissements en technologie des énergies renouvelables

Les investissements en technologie des énergies renouvelables d'Allete en 2023 ont atteint 142,5 millions de dollars, avec des allocations spécifiques:

• Développement de la technologie solaire: 45,3 millions de dollars
• Expansion du parc éolien: 67,2 millions de dollars
• Solutions de stockage d'énergie: 30 millions de dollars

Rémunération et formation de la main-d'œuvre

Total des dépenses liées à la main-d'œuvre pour 2023:

Catégorie de dépenses	Montant
Salaires et salaires	215,7 millions de dollars
Avantages sociaux	62,4 millions de dollars
Formation professionnelle	3,9 millions de dollars

Frais de conformité réglementaire

Les coûts de conformité réglementaire d'Allete en 2023 ont totalisé 56,2 millions de dollars, notamment:

• Permis environnemental: 18,6 millions de dollars
• Représentation réglementaire: 12,4 millions de dollars
• Conformité juridique: 25,2 millions de dollars

Initiatives d'atténuation environnementale et de durabilité

La durabilité et les dépenses environnementales pour 2023 s'élevaient à 94,6 millions de dollars:

Initiative	Investissement
Programmes de réduction du carbone	37,8 millions de dollars
Conservation de l'habitat	22,5 millions de dollars
Transition d'énergie renouvelable	34,3 millions de dollars

ALLETE, Inc. (ALE) - Modèle d'entreprise: Strots de revenus

Ventes d'électricité aux clients commerciaux

En 2022, les ventes commerciales d'électricité d'Allete ont généré 290,4 millions de dollars de revenus. Le taux d'électricité commercial moyen était de 0,0854 $ par kilowatt-heure.

Segment de clientèle	Revenus ($ m)	Taux moyen (¢ / kWh)
Grande publicité	187.6	0.0732
Petite publicité	102.8	0.0976

Frais de service de services publics résidentiels

Les ventes d'électricité résidentielle en 2022 ont totalisé 336,7 millions de dollars, avec un taux résidentiel moyen de 0,1276 $ par kilowattheure.

• Clients résidentiels totaux: 144 832
• Facture résidentielle mensuelle moyenne: 128,45 $

Développement du projet d'énergie renouvelable

Les projets d'énergie renouvelable d'Allete ont généré 76,5 millions de dollars de revenus pour 2022, avec une énergie éolienne contribuant à 62,3 millions de dollars.

Type d'énergie renouvelable	Revenus ($ m)	Capacité (MW)
Énergie éolienne	62.3	385
Énergie solaire	14.2	75

Revenus du programme d'efficacité énergétique

Les programmes d'efficacité énergétique ont généré 18,2 millions de dollars de revenus pour 2022.

• Rebutins d'efficacité énergétique résidentielle: 7,6 millions de dollars
• Programmes commerciaux de l'efficacité énergétique: 10,6 millions de dollars

Incitations gouvernementales et réglementaires

Les incitations gouvernementales et réglementaires ont contribué 42,3 millions de dollars aux revenus d'Allete en 2022.

Type d'incitation	Montant ($ m)
Crédits d'impôt de production	27.6
Certificats d'énergie renouvelable	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.