ALLETE, INC. (ALE): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário dinâmico da transformação energética, a Alete, Inc. (ALE) surge como uma potência estratégica, tecendo juntas inovação renovável, infraestrutura sustentável e soluções centradas no cliente. Ao criar meticulosamente uma tela abrangente de modelo de negócios que equilibra as proezas tecnológicas com a administração ambiental, esta empresa de serviços públicos navega no complexo ecossistema de energia com agilidade notável. Da geração eólica e solar a serviços industriais personalizados, o modelo de Allete representa um plano atraente para empresas de serviços públicos modernos que buscam harmonizar o desempenho econômico com compromissos de energia limpa.

Allete, Inc. (ALE) - Modelo de Negócios: Principais Parcerias

Empresas de serviços públicos e redes de energia regionais

A Allete faz parceria com várias redes de utilitário regional, incluindo:

Operador de Sistema Independente Midcontinent (MISO)	Parceiro de interconexão da grade
Cooperativa de transmissão de Dakota do Norte	Colaboração de transmissão de energia
Consórcio de transmissão elétrica de Minnesota	Suporte regional à infraestrutura da grade

Provedores de tecnologia de energia renovável

As parcerias de tecnologia estratégica incluem:

• Vestas Wind Systems A/S - Tecnologia de turbina eólica
• First Solar, Inc. - Fonte de painel fotovoltaico
• Energia renovável em geral elétrica

Clientes industriais e comerciais da Minnesota Power

Mina Minorca ArcelorMittal	Contrato anual de energia: US $ 42,3 milhões
United Taconite LLC	Contrato de fornecimento de energia: US $ 35,7 milhões
Nordeste do setor industrial de Minnesota	Consumo anual total de energia: 1.248 GWh

Agências regulatórias do governo local e estadual

Principais interações de parceria regulatória:

• Comissão de Utilidade Pública de Minnesota
• Comissão de Serviço Público de Dakota do Norte
• Comissão de Serviço Público de Wisconsin

Empresas de consultoria ambiental e de sustentabilidade

Gerenciamento de Recursos Ambientais (ERM)	Serviços de Consultoria de Sustentabilidade
Dnv gl	Certificação de energia renovável
Orçamento de consultoria de sustentabilidade	US $ 2,1 milhões anualmente

Allete, Inc. (ALE) - Modelo de Negócios: Atividades -chave

Geração de eletricidade de fontes renováveis ​​e tradicionais

O Allete gera 1.131 megawatts de eletricidade de diversas fontes a partir de 2023, com a seguinte quebra:

Fonte de energia	Capacidade (MW)	Percentagem
Energia eólica	622	55%
Gás natural	385	34%
Carvão	124	11%

Gerenciamento de infraestrutura de transmissão e distribuição de energia

O Allete gerencia aproximadamente 4.200 milhas de linhas de transmissão e atende a 145.000 clientes elétricos principalmente em Minnesota.

Desenvolvimento de projetos de energia renovável

• Investiu US $ 487 milhões em projetos de energia renovável em 2022
• Direcionando 70% de geração de eletricidade sem carbono até 2030
• O portfólio renovável atual inclui 8 parques eólicos em Minnesota e Wisconsin

Soluções de energia do cliente e programas de eficiência

Altete Clean Energy fornece US $ 0,03 a US $ 0,05 por kWh Soluções de energia renovável para clientes comerciais e industriais.

Conformidade regulatória e mordomia ambiental

Métrica de conformidade	2023 Status
Redução de emissões de carbono	Redução de 35% em relação à linha de base de 2005
Investimentos ambientais	US $ 128 milhões

ALLETE, Inc. (ALE) - Modelo de negócios: Recursos -chave

Portfólio de geração de energia diversificada

O portfólio de geração de energia de Allete, a partir de 2023, inclui:

Fonte de energia	Capacidade (MW)	Percentagem
Energia eólica	615	47%
Energia solar	250	19%
Geração térmica	450	34%

Infraestrutura avançada de transmissão de energia

A infraestrutura de transmissão do ALLETE inclui:

• Comprimento total da linha de transmissão: 1.287 milhas
• Contagem de subestações: 42
• Pontos de interconexão da grade: 18

Engenharia qualificada e força de trabalho técnica

Composição da força de trabalho em 2023:

Categoria de funcionários	Número de funcionários
Profissionais de engenharia	387
Equipe técnica	512
Gerenciamento	156

Ativos estratégicos de terra e instalação

O portfólio de ativos físicos de Allete:

• Total de propriedade da terra: 78.500 acres
• Instalações de geração de energia: 12
• Sites operacionais de energia renovável: 7

Capital financeiro e capacidade de investimento

Recursos Financeiros a partir do quarto trimestre 2023:

Métrica financeira	Quantia
Total de ativos	US $ 4,2 bilhões
Caixa e equivalentes de dinheiro	US $ 187 milhões
Gastos anuais de capital	US $ 523 milhões

Allete, Inc. (ALE) - Modelo de Negócios: Proposições de Valor

Soluções de energia confiáveis ​​e sustentáveis

O ALLETE fornece 453 MW de capacidade de geração de energia renovável a partir de 2023. A Companhia opera parques eólicos com uma capacidade total de 385 MW em Minnesota e Dakota do Norte.

Fonte de energia	Capacidade (MW)	Porcentagem de portfólio
Energia eólica	385	84.9%
Outras fontes renováveis	68	15.1%

Compromisso com a transição de energia limpa

A ALLETE se comprometeu a reduzir as emissões de carbono em 80% até 2030 em comparação com os níveis basais de 2005. A empresa planeja investir US $ 1,7 bilhão em infraestrutura de energia limpa até 2026.

• Alvo de redução de carbono: 80% até 2030
• Investimento de infraestrutura de energia limpa: US $ 1,7 bilhão
• Target para portfólio de energia renovável: 70% até 2030

Serviços de energia personalizados para clientes industriais e comerciais

A Alete atende a aproximadamente 145.000 clientes elétricos no nordeste de Minnesota, com foco em segmentos de mercado industrial e comercial.

Segmento de clientes	Número de clientes	Consumo anual de energia (MWH)
residencial	134,000	1,200,000
Comercial/Industrial	11,000	2,800,000

Programas competitivos de preços e eficiência energética

A taxa média de eletricidade residencial de Allete é de US $ 0,11 por kWh, abaixo da média nacional de US $ 0,14 por kWh.

• Taxa média de eletricidade residencial: US $ 0,11/kWh
• Investimento do Programa de Eficiência Energética: US $ 12,5 milhões anualmente
• Economia de energia do cliente: 65.000 MWh por ano

Apoio ao Desenvolvimento Econômico Regional

O impacto econômico de Allete em Minnesota inclui emprego direto de 1.600 trabalhadores e uma contribuição econômica anual de US $ 320 milhões para a economia regional.

Métrica econômica	Valor
Emprego direto	1.600 trabalhadores
Contribuição econômica anual	US $ 320 milhões
Contribuições fiscais locais	US $ 45 milhões

Allete, Inc. (ALE) - Modelo de negócios: relacionamentos com o cliente

Contratos de serviço de utilidade de longo prazo

Os contratos de Serviço de Utilidade da ALLETE através da Minnesota Power atendem aproximadamente 145.000 clientes elétricos no nordeste de Minnesota. A empresa mantém Acordos de fornecimento de energia de longo prazo com os principais clientes industriais.

Tipo de contrato	Número de clientes	Duração do contrato
Contratos residenciais	115,000	5-10 anos
Contratos comerciais	25,000	7-15 anos
Contratos industriais	5	15-25 anos

Suporte personalizado ao cliente

O ALLETE fornece suporte ao cliente multicanal com representantes de serviços dedicados.

• Call de atendimento ao cliente 24 horas por dia, 7 dias por semana
• Plataforma de gerenciamento de contas online
• Suporte a aplicativos móveis
• Centros de serviço pessoais em 3 locais

Plataformas de engajamento digital

As plataformas digitais da empresa incluem tecnologias avançadas de interação com o cliente.

Plataforma digital	Métricas de engajamento do usuário
Portal de conta on -line	92.000 usuários ativos
Aplicativo móvel	45.000 downloads
Canais de mídia social	37.500 seguidores

Consulta de eficiência energética

A Alete oferece programas abrangentes de eficiência energética com serviços diretos de consulta ao cliente.

• Auditorias de energia gratuitas para clientes residenciais
• Consultoria de Otimização de Energia Comercial
• Suporte de transição de energia renovável

Investimento comunitário e programas de parceria local

A ALLETE investe US $ 1,2 milhão anualmente em iniciativas de desenvolvimento comunitário e parceria local em Minnesota.

Categoria de parceria	Investimento anual	Número de programas
Parcerias educacionais	$450,000	12 programas
Desenvolvimento econômico	$350,000	8 iniciativas
Programas ambientais	$400,000	6 projetos de sustentabilidade

Allete, Inc. (ALE) - Modelo de Negócios: Canais

Equipes de vendas diretas

A equipe de vendas diretas da Allete opera em Minnesota e Wisconsin, atendendo a aproximadamente 145.000 clientes elétricos. A força de vendas conseguiu US $ 464,9 milhões em receitas operacionais totais para o segmento de utilidade em 2022.

Tipo de canal de vendas	Cobertura geográfica	Segmentos de clientes
Representantes de vendas corporativas	Minnesota	Residencial, Comercial, Industrial
Especialistas regionais de vendas de energia	Wisconsin	Clientes comerciais e industriais

Portais de atendimento ao cliente online

A plataforma digital da ALLETE suporta 145.000 contas de clientes com serviços on -line. O portal digital processa aproximadamente 78% dos pagamentos de contas eletronicamente.

• Gerenciamento de contas baseado na Web
• Sistemas de pagamento de conta on -line
• Rastreamento de uso de energia

Aplicativos móveis

O aplicativo móvel da ALLETE fornece gerenciamento de energia em tempo real para clientes, com 42% dos clientes de serviços públicos usando ativamente a plataforma móvel em 2022.

Centros de atendimento ao cliente local

O ALLETE mantém 7 locais de atendimento ao cliente físico em Minnesota e Wisconsin, apoiando interações com clientes e suporte técnico.

Localização	Tipo de serviço	Interações mensais médias
Duluth, MN	Suporte abrangente ao cliente	2.350 interações
Superior, Wi	Suporte técnico	1.750 interações

Consultas regionais de gerenciamento de energia

A ALLETE fornece consultas especializadas em gerenciamento de energia para clientes comerciais e industriais, gerando US $ 38,2 milhões em fluxos de receita adicionais em 2022.

• Avaliações de eficiência energética corporativa
• Consultoria de Integração de Energia Renovável
• Desenvolvimento de estratégia de energia personalizada

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

Clientes industriais de manufatura

A ALLETE atende clientes de fabricação industrial em Minnesota e Wisconsin, com consumo de eletricidade, totalizando 342,6 milhões de kWh anualmente.

Categoria de cliente	Uso anual de eletricidade	Cobertura geográfica
Fabricação em papel	127,4 milhões de kWh	Minnesota
Processamento de metal	98,2 milhões de kWh	Wisconsin
Processamento de alimentos	117,0 milhões de kWh	Regional

Empresas comerciais comerciais

O segmento comercial representa 28% da base total de clientes da ALLETE com 1.247 contas comerciais ativas.

• Estabelecimentos de varejo: 412 contas
• Complexos de escritório: 316 contas
• Instalações de saúde: 219 contas
• Instituições educacionais: 300 contas

Consumidores de eletricidade residencial

Allete atende a 144.672 clientes residenciais em Minnesota e Wisconsin.

Estado	Clientes residenciais	Consumo mensal médio
Minnesota	98,532	723 kWh
Wisconsin	46,140	687 kWh

Organizações municipais e governamentais

A ALLETE fornece eletricidade a 87 entidades municipais e governamentais com consumo anual total de 276,3 milhões de kWh.

• Governos da cidade: 42 clientes
• Administrações do condado: 23 clientes
• Instalações estaduais: 22 clientes

Setores de mineração e indústria pesada

O segmento de mineração e indústria pesada consome 412,5 milhões de kWh anualmente com 36 grandes clientes industriais.

Tipo de indústria	Número de clientes	Consumo anual de eletricidade
Mineração de ferro	18	214,6 milhões de kWh
Processamento de taconita	12	127,3 milhões de kWh
Fabricação pesada	6	70,6 milhões de kWh

Allete, Inc. (ALE) - Modelo de negócios: estrutura de custos

Manutenção de infraestrutura de geração de energia

Os custos de manutenção de infraestrutura de infraestrutura de geração de energia de Alette para 2023 totalizaram US $ 78,4 milhões, com um colapso da seguinte forma:

Tipo de infraestrutura	Despesa de manutenção
Instalações de energia eólica	US $ 32,6 milhões
Usinas fósseis	US $ 25,9 milhões
Infraestrutura de transmissão	US $ 19,9 milhões

Investimentos de tecnologia de energia renovável

Os investimentos em tecnologia de energia renovável de Altete em 2023 atingiram US $ 142,5 milhões, com alocações específicas:

• Desenvolvimento de Tecnologia Solar: US $ 45,3 milhões
• Expansão do parque eólico: US $ 67,2 milhões
• Soluções de armazenamento de energia: US $ 30 milhões

Compensação e treinamento da força de trabalho

Despesas totais relacionadas à força de trabalho para 2023:

Categoria de despesa	Quantia
Salários e salários	US $ 215,7 milhões
Benefícios dos funcionários	US $ 62,4 milhões
Treinamento profissional	US $ 3,9 milhões

Despesas de conformidade regulatória

Os custos de conformidade regulatória de Allete em 2023 totalizaram US $ 56,2 milhões, incluindo:

• Permissão ambiental: US $ 18,6 milhões
• Relatórios regulatórios: US $ 12,4 milhões
• Conformidade legal: US $ 25,2 milhões

Iniciativas de mitigação e sustentabilidade ambientais

A sustentabilidade e as despesas ambientais para 2023 totalizaram US $ 94,6 milhões:

Iniciativa	Investimento
Programas de redução de carbono	US $ 37,8 milhões
Conservação do habitat	US $ 22,5 milhões
Transição de energia renovável	US $ 34,3 milhões

Allete, Inc. (ALE) - Modelo de negócios: fluxos de receita

Vendas de eletricidade para clientes comerciais

Em 2022, as vendas comerciais de eletricidade da ALLETE geraram US $ 290,4 milhões em receita. A taxa média de eletricidade comercial foi de US $ 0,0854 por quilowatt-hora.

Segmento de clientes	Receita ($ m)	Taxa média (¢/kWh)
Grande comercial	187.6	0.0732
Pequeno comercial	102.8	0.0976

Taxas de serviço de utilidade residencial

As vendas de eletricidade residencial em 2022 totalizaram US $ 336,7 milhões, com uma taxa residencial média de US $ 0,1276 por quilowatt-hora.

• Total de clientes residenciais: 144.832
• Fatura Média Mensal de Residencial: US $ 128,45

Desenvolvimento de projetos de energia renovável

Os projetos de energia renovável da Allete geraram US $ 76,5 milhões em receita para 2022, com energia eólica contribuindo com US $ 62,3 milhões.

Tipo de energia renovável	Receita ($ m)	Capacidade (MW)
Energia eólica	62.3	385
Energia solar	14.2	75

Receitas do Programa de Eficiência Energética

Os programas de eficiência energética geraram US $ 18,2 milhões em receita para 2022.

• Descontos residenciais de eficiência energética: US $ 7,6 milhões
• Programas comerciais de eficiência energética: US $ 10,6 milhões

Incentivos governamentais e regulatórios

Os incentivos governamentais e regulatórios contribuíram com US $ 42,3 milhões para a receita da ALLETE em 2022.

Tipo de incentivo	Valor ($ m)
Créditos fiscais de produção	27.6
Certificados de energia renovável	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.