News coverage of a Minnesota Administrative Law Judge recommending against the PE acquisition of ALLETE and Minnesota Power
July 22, 2025
Last week, Minnesota Administrative Law Judge (ALJ) Megan J. McKenzie issued an opinion recommending against the proposed$6.2 billion acquisition of ALLETE and Minnesota Power by Global Infrastructure Partners, which is wholly owned by BlackRock, and the Canada Pension Plan Investment Board. The proposed acquisition has raised significant concerns among a broad coalition of organizations, residential and industrial customers, and regulators who fear it will lead to increased costs, compromised reliability, and reduced transparency for Minnesota Power customers.
The opinion was reported on by local, state, and national news publications. PESP joins the coalition calling on the Public Utilities Commission (PUC) to follow the recommendation from the ALJ and prevent this deal from happening to protect Minnesota Power’s customers from potential rate spikes and unreliable service.
As reported in The Minnesota Star Tribune, “The judge’s report called into question several of the investor promises, suggesting that promises of capital infusion weren’t backed up by evidence.”
Hudson Kingston, one of the attorneys for Minnesota CURE told the Star Tribune, “That should give everyone serious concerns about this deal, and the idea that the utility’s workforce and 150,000 customers will be saddled with a utility that isn’t overly concerned with honest dealing. We expect the Public Utilities Commission to stand by the public and reject any utility acquisition that will harm Minnesotans and the economy only to enrich private equity speculators.”
KAXE, a radio station in northern Minnesota, reported, “Central to the case is the question of whether the sale is ‘consistent with the public interest.’ In other words, do the pros outweigh the cons? Administrative Law Judge Megan J. McKenzie said no, opining the arrangement would result in net harm to the public interest. These harms include risks to the clean energy transition, ALLETE’s long-term financial health and ratepayers.”
Utility Dive directly quoted the ALJ, stating, “The pending deal poses risks to Allete’s financial health and ratepayers, and the proposed private equity model isn’t in the public interest.”
And The New York Times stated, “Some consumer and progressive groups contend that investment firms shouldn’t own electric utilities because they generally seek to maximize profits, often by burdening the company’s finances with large amounts of debt. That approach, the critics argue, could lead to much higher electricity rates and less reliable service.”
As Nichole Heil, Senior Research & Campaign Coordinator for Climate at PESP told Ivan Penn at The New York Times: “No one in northern Minnesota wants higher utility bills solely to line the pockets of Wall Street-based private equity firms.”
Coverage in the Duluth News Tribune stated that, “The deal still faces opposition from the Minnesota Attorney General’s office, several environmental groups, and a coalition of Minnesota Power’s largest industrial customers, like mines and paper plants.”
This potential acquisition in Minnesota is seen as a critical test for how states will address the growing national trend of private investment in essential public utility infrastructure and energy assets. The Minnesota PUC’s final decision, expected this fall, will have significant implications not only for northern Minnesota but for the broader conversation about who should own and control vital public services across the country.
