Contact:
Megan Wittman, megan.wittman@sierraclub.org
DULUTH, Minn. – Today, elected officials and community members gathered outside of Minnesota Power’s headquarters to call on the Minnesota Public Utilities Commission (PUC) to reject the utility’s private equity acquisition. Under the proposed acquisition, ALLETE, the parent company of Minnesota Power, would no longer be a publicly traded company and would be sold to two private equity investors, the Canadian Pension Plan Investment Board (CPP) and Global Infrastructure Partners, a subsidiary of BlackRock, the world’s largest asset manager. A livestream from the press conference can be found here.
“Folks from all over Duluth and across the Northland have been ringing the alarm bells for over a year. Like most private equity vultures, these firms threaten to gut ALLETE and Minnesota Power, trying to pick last bits of easy profit while Minnesotans will be burdened with higher utility bills. We shouldn’t have to pay more for an essential service that keeps the lights on while private equity executives rake in profits at our expense. All eyes are on Minnesota and the PUC: we cannot put private equity profits over everyday people. The public needs to be protected by rejecting this heinous deal,” said Jenna Yeakle, Central Region Campaign Manager, Beyond Coal at Sierra Club.
In July, an Administrative Law Judge (ALJ) found that the proposed acquisition and private equity buyout of ALLETE is not in the public interest, and that the acquisition’s risks and harms outweigh the alleged benefits, resulting in net harm for ratepayers. In her findings, Administrative Law Judge Megan J. McKenzie wrote, “The nonpublic evidence reveals [GIP and CPP’s] intent to do what private equity is expected to do – pursue profit in excess of public markets through company control.”
Opponents to the acquisition include organizations who were parties in the contested case proceeding, including Sierra Club, CURE, and the Minnesota Citizens Utility Board, as well as the Minnesota Attorney General and Minnesota Power’s largest industrial customers. In addition, an alliance of fifteen environmental, climate justice, and community organizations voiced their opposition in a joint letter. The public also spoke out overwhelmingly against the deal, with nearly 500 commenters asking the PUC to reject the private equity takeover.
Alissa Jean Schafer, Climate and Energy Director at the Private Equity Stakeholder Project, added: “Minnesota regulators and elected officials should be alarmed by the differences in what BlackRock is saying publicly and privately, as noted in Judge McKenzie’s recommendation against the deal. Decisions about who owns and operates Minnesota Power should be made with the public’s best interest at heart, not dictated by shady Wall Street insiders working behind closed doors.”
Advocates warn that if approved, the takeover would saddle Minnesota Power with the private equity business model—notorious for aggressive cost-cutting, higher rates, and short-term profiteering. BlackRock, which already has major investments in fossil fuel infrastructure such as the Rio Grande LNG terminal in Texas, has shown it prioritizes financial returns over community needs.
The acquisition also threatens to derail Minnesota’s clean energy transition. While the state has a plan to achieve 100% carbon-free electricity by 2040, opponents warn that private equity ownership could slow progress on renewable projects, while driving up rates for families and businesses. In addition, the deal could leave Minnesota Power customers facing increased bills, compromised reliability, and reduced transparency—all in service of Wall Street profits.
The decision now rests with the Minnesota Public Utilities Commission, which is expected to make a ruling in late September or early October. Hearing dates have not yet been announced.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.