ALLETE acquires two Minnesota wind power farms for $47M

Source:ALLETE Clean Energy

ALLETE Clean Energy expands renewable energy portfolio with acquisition of a combined 97.5 MW southern Minnesota wind power facility

ALLETE Clean Energy, a subsidiary of ALLETE, Inc. (NYSE: ALE), has acquired a combined 97.5 megawatt (MW) wind generation facility near Lake Benton, Minn. for $47.5 million.

The facility is being purchased from a subsidiary of EDF Renewable Energy. Located in southwest Minnesota in the proximity of other ALLETE Clean Energy-owned wind turbines, the Chanarambie and Viking wind farms being purchased consist of a total of 65 General Electric turbines producing electricity under existing power purchase agreements with Northern States Power.

"Acquiring these productive renewable projects is consistent with our growth strategy," said ALLETE Clean Energy President Eric Norberg. "This acquisition makes good sense from an efficiency standpoint due to their proximity to the Lake Benton project we acquired a year ago."

In January of 2014, ALLETE Clean Energy closed on the purchase of three wind power farms from AES Corp. in three different states. Included in that acquisition was a 104 MW wind farm in Lake Benton, approximately 20 miles from the Chanarambie-Viking facility. At the same time, ALLETE Clean Energy signed an option to acquire a fourth wind farm from AES, in Pennsylvania, in mid-2015.

In November of 2014, ALLETE Clean Energy finalized a major development agreement with Montana-Dakota Utilities, a division of MDU Resources Group (NYSE: MDU), acquiring the rights to develop a 107 MW wind farm near Hettinger, N.D., and then sell the project to Montana-Dakota for approximately $200 million. In December of 2014, ALLETE Clean Energy finalized the acquisition of a wind generation facility in Storm Lake, Iowa, adding another 108 megawatts to its growing renewable energy portfolio.

"ALLETE Clean Energy is earning a name for itself by adding to its portfolio of assets, renewable generation equipment and solid power purchase agreements with established entities," said ALLETE Chairman, President and CEO Al Hodnik. "We envision more growth opportunities ahead as the energy landscape evolves."

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