Most of the five utility commissioners — who are appointed by Gov. Tim Walz — said they were initially skeptical of the deal. But they were swayed as Allete and its buyers agreed to many conditions in negotiations with the Walz administration, and later at the request of the PUC.
Allete won’t be able to ask for higher rates before November 2026, will pay $50 million in bill credits for customers, $50 million for a carbon-free technology fund, substantially reduce past-due bills, abide by regulations meant to ensure greater transparency and independent governance, and limit changes or cuts to its workforce.
Audrey Partridge, a DFL commissioner, pushed the utility and its buyers to agree to a $10 million fund to reduce space heating and cooling costs and save money for customers.
A proposal by independent commissioner Hwikwon Ham imposes a five-year cap on a profit metric that will limit bill increases.
Sieben had proposed the bill credits, and said the money could benefit mining and paper production along with household customers.
“Given the overall size of the utility, it’s a significant amount,” Sieben said of the bill credits. “Northern Minnesota, large industrial customers are really price sensitive.”
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