ALE

MDU Resources Joins North Plains Connector: MDU Resources has signed a non-binding memorandum of understanding to join the North Plains Connector utility consortium, committing to 150 megawatts of capacity on the HVDC transmission line project connecting Eastern and Western Interconnections.

Significance of the Project: The North Plains Connector project, which is expected to be operational by 2032, aims to enhance the reliability and resiliency of the electrical grid across multiple regional markets while creating over 800 jobs during construction.

Collaboration Among Utilities: MDU Resources is the seventh utility to join the consortium, which includes other major utilities like Puget Sound Energy and Portland General Electric, collectively addressing approximately 15% of their peak loads through this project.

Investment and Future Outlook: The multi-billion-dollar investment in Montana and North Dakota reflects a strategic move towards improving electrical infrastructure, with construction slated to begin in 2028, signaling a commitment to meet the growing demand for electricity.

Third-Quarter Financial Performance: ALLETE, Inc. reported a decline in third-quarter profit, with net income falling to $27.1 million from $45 million, and earnings per share dropping to $0.46 from $0.78.

Revenue Decline: The company's revenue decreased by 7.9% to $375 million, primarily due to a significant drop in non-utility segment sales, which fell to $53.3 million from $95.4 million, although utility revenue increased slightly.

Operating Income: Operating income also saw a decrease, dropping to $29.6 million from $45.3 million in the same quarter last year.

Acquisition Update: ALLETE is currently awaiting a written order from the Minnesota Public Utilities Commission to proceed with its acquisition by Canada Pension Plan Investment Board and Global Infrastructure Partners.

Earnings Report: ALLETE, Inc. reported third quarter 2025 earnings of 46 cents per share, down from 78 cents per share in the same quarter last year, primarily due to lower sales to industrial customers and inflationary pressures.

Partnership Approval: The Minnesota Public Utilities Commission approved ALLETE's partnership with CPP Investments and GIP, which is expected to provide significant benefits to customers and communities, pending a written order for transaction closure.

Segment Performance: The Regulated Operations segment saw a slight decrease in net income, while ALLETE Clean Energy reported a net loss due to lower production and tax credits, and New Energy Equity's income also fell due to reduced sales of renewable projects.

Future Outlook: ALLETE anticipates continued challenges from lower industrial margins and sales, but expects substantial value and benefits for Minnesota Power customers from the new partnership, including rate credits and a stay-out provision for rate cases.