Minnesota Approves $6.2B BlackRock-Allete Deal to Accelerate Clean Energy Transition
Minneapolis – Minnesota regulators have given the green light to a $6.2 billion acquisition of utility owner Allete by BlackRock’s Global Infrastructure Partners unit and the Canada Pension Plan Investment Board, marking a major step forward in the clean energy transition for Northeastern Minnesota.
The unanimous 5-0 vote by the Minnesota Public Utilities Commission follows recent modifications to the agreement, which provide additional benefits for consumers and utility stakeholders, strengthening confidence in the deal and supporting sustainable energy investments.
The deal, initially announced last year, positions Allete to accelerate its transition to cleaner energy sources, including significant investments in hydropower and renewable energy infrastructure.
The updated agreement includes a $258 million benefits package for utility stakeholders, combining contributions to a clean technology fund and bill credits for consumers
Commissioner Hwikwon Ham highlighted that the modifications addressed earlier concerns, giving him confidence in both the financial and environmental aspects of the agreement, while Commission Chair Katie Sieben emphasized the importance of major infrastructure projects such as new transmission lines to bring hydropower from Manitoba.
Global Infrastructure Partners’ founding partner Jonathan Bram noted that the acquisition will preserve Allete’s legacy of community focus, while advancing safe, reliable, and increasingly carbon-free electricity for the region. Allete CEO Bethany Owen added that the partnership equips the company to meet the growing infrastructure demands of the clean energy transition without compromising service quality, reliability, or affordability.
With all required regulatory approvals now secured, BlackRock and the Canada Pension Plan Investment Board expect the transition to close in late 2025. The deal also sets a positive precedent for future infrastructure investments by demonstrating how private investors and public utilities can collaborate to achieve sustainability goals, expand renewable energy capacity, and benefit communities.
This acquisition reflects broader trends in clean energy investment, renewable infrastructure financing, and sustainable utility modernization, positioning Minnesota as a leader in the regional energy transition while providing a blueprint for balancing regulatory oversight, stakeholder benefits, and long-term environmental impact.
