Local media coverage highlights widespread opposition to the private equity takeover of public utility company Minnesota Power

The proposed $6.2 billion acquisition of ALLETE, the parent company of Minnesota Power, by Global Infrastructure Partners (GIP)and the Canada Pension Plan Investment Board (CPP) has sparked widespread concern in northern Minnesota. Private Equity Stakeholder Project (PESP) believes this deal represents a dangerous precedent for utilities and their customers.

This acquisition would place Minnesota Power, a critical northern Minnesota utility, under private equity control. GIP, owned by BlackRock, prioritizes short-term profits over long-term stability. Private equity ownership often leads to higher debt levels and increased financial risk. 

If approved, this deal could set a concerning precedent for future utility sector acquisitions by making Minnesota Power one of the few vertically integrated utilities owned by a private equity firm.

Here is what local residents who oppose the private equity acquisition of the public utility are saying: 

Duluth News Tribune April 7, 2025: At public hearing, BlackRock looms over Allete sale

During the public hearings, the Minnesota Attorney General’s Office and the Minnesota Department of Commerce commented on their opposition to the acquisition. 

The public hearings have also revealed strong opposition from residents and stakeholders. Mary Mingo Gallet, a Minnesota Power customer and shareholder, told Judge McKenzie—the administrative law Judge hearing the public testimony to help guide a recommendation on whether the sale is in the public interest—that the PUC should reject the deal, citing BlackRock’s role. “They (BlackRock) go in, and they break things. They tear things apart. They sell them. They sell off pieces for profit,” she said. “And then the people that are left are just left with nothing.”

Private Equity Stakeholder Project’s Jordan Ash, a Duluth resident, said, “BlackRock’s ownership in so many different companies and industries raises the prospect of conflicts of interest.” During his testimony, Jordan pointed out that BlackRock holds 10% shares in U.S. Steel and Cleveland-Cliffs, the two companies operating all six Iron Range mines and are major customers of Minnesota Power. He said, “This would make these conflicts of interest even harder to identify clearly, and regulators in the public would have far less information about the profit-seeking motivations for changes to proposed rates or to the infrastructure that Minnesota Power owns and controls.” 

Northern News Now April 7, 2025: Community sounds off at public hearing on ALLETE’s potential acquisition

During the public hearings, Minnesota Power customer Linda Herron expressed concerns about the lack of transparency if the acquisition goes through. “What guarantee do we have that GIP Blackrock would work to reach our state goal of 100% carbon-free energy by 2040,” questioned Herron. “Private equity firms focus on increasing revenues and decreasing expenditures,” said Herron.

Duluth City Councilor Wendy Durrwachter has heard similar concerns from her constituents. “There are a lot of alarms that go off with a private equity firm buying a utility,” said Durrwachter.

WDIO April 8, 2025: Public hearings begin over proposed Minnesota Power sale

During the public hearings, residents signed up to voice their opinions on the proposal. Several spoke in opposition, worried about the sale of ALLETE to GIP, which is owned by the private equity firm BlackRock.

Private Equity Stakeholder Project’s Jordan Ash, a Duluth resident, said, “After acquiring a company, private equity firms are often laser-focused on growing cash flow, typically by using heavy debt loads and raising the cost to consumers. The private equity industry is known for cost-cutting to increase cash flow. This can include reductions of qualified staff and the deferral of necessary maintenance and capital improvements.”