ALLETE, Inc.
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ALLETE, Inc.: SWOT Analysis & Company
Profile
Reference code: BRAE036CP10-Q4
Published: Apr 2010
Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
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ALLETE, Inc. - SWOT Profile Page 1
ALLETE, Inc.
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ALLETE, Inc. - Company Overview
ALLETE, Inc. (ALLETE) is a diversified company that provides fundamental services. It is mainly engaged in the provision
of energy services in the upper Midwest and also participates in real estate holdings in Florida. The company's business is
comprised of Regulated Operations, and Investments and Other. The Regulated Operations segment is engaged in the
retail and wholesale of rate-regulated electric, natural gas, and water services. The Investments and Other segment are
engaged in the coal mining business in North Dakota and real estate business in Florida. The company operates its
business activities through four of its subsidiaries, namely, Minnesota Power, Superior Water Light and Power, BNI Coal,
and ALLETE Properties. ALLETE mainly serves the taconite, paper, pulp, wood products, and pipeline industries. It is
headquartered at Duluth in Minnesota, the US.
Financial Performance
The company reported revenues of (U.S. Dollars) USD 759.10 million during the fiscal year ended December 2009, a
decrease of 5.23% from 2008. The operating profit of the company was USD 106.00 million during the fiscal year 2009, a
decrease of 12.97% from 2008. The net profit of the company was USD 61.00 million during the fiscal year 2009, a
decrease of 26.06% from 2008.
ALLETE, Inc. - Key Facts
ALLETE, Inc., Key Facts
30 West Superior Street, Duluth,
Minnesota (MN), 55802, United Ticker Symbol, Stock
Corporate Address: ALE (New York Stock Exchange)
Exchange
States
Telephone + 1 218 2795000 No. of Employees 1,411
Fax + 1 218 7233944 Financial Year End December
URL www.allete.com Revenue (in USD Million) 759.10
Industry Alternative Energy , Power
Locations United States
Source: Annual Report, Company Website, Primary and Secondary Research
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ALLETE, Inc. - SWOT Profile Page 2
ALLETE, Inc.
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ALLETE, Inc. - Business Description
ALLETE through its subsidiaries is engaged in the generation, transmission, and distribution of electric power in the US.
The company operates through two reportable business segments, namely, Regulated Operations segment and
Investments and Other segment .
Regulated Operations segment is engaged in the retail and wholesale of rate-regulated electric, natural gas, and water
services in northeastern Minnesota and northwestern Wisconsin. This segment includes regulated utilities Minnesota
Power and Superior Water Light and Power (SWL&P). Minnesota Power provides regulated utility electric service in
northeastern Minnesota to almost 142,000 retail customers and wholesale electric service to 16 municipalities. SWL&P
provides regulated electric service, natural gas and water service in northwestern Wisconsin to 15,000 electric customers,
12,000 natural gas customers and 10,000 water customers.
Investments and Other segment is engaged in the coal mining business in North Dakota; and real estate business in
Florida. This segment is comprised of BNI Coal and ALLETE Properties. BNI Coal owns and operates a lignite mine near
Center, North Dakota; delivering the lowest-priced lignite and has reserves base of 600 million tons. ALLETE Properties
carries real estate operations in various locations in Florida. The company holds three major projects in various stages of
development namely Town Center at Palm Coast, Palm Coast Park and Ormond Crossings.
In addition, the company through its wholly owned subsidiary Rainy River Energy owns approximately 8% of American
Transmission Company (ATC). ATC provides transmission service under rates regulated by the FERC that are set in
accordance with the FERC’s policy of establishing the independent operation and ownership of, and investment in,
transmission facilities.
During the fiscal year ended 2008, the company recorded USD 689.4 million from its Regulated Operation segment and
USD 77.3 million from its Investment and Other segment.
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ALLETE, Inc. - SWOT Profile Page 3
ALLETE, Inc.
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ALLETE, Inc. - Major Products and Services
Allete core business is energy and real estate and it is also into automotive, water, natural gas and telecommunication
industry. The company's key products and services includes:
ALLETE, Inc., Major Products and Services
Products:
Coal fired based steam energy generation
Coal mining
Real estate
Telecommunication
Wind based energy generation
Services:
Clean water supply
Natural gas transmission and distribution
Power distribution
Power transmission
Real estate development and leasing
Brands:
ALLETE properties
BNI coal
Minnesota power
Superior water light and power
Source: Annual Report, Company Website, Primary and Secondary Research
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ALLETE, Inc. - SWOT Profile Page 4
ALLETE, Inc.
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ALLETE, Inc. - History
ALLETE, Inc., History
Year Event type Description
2008 Others In 2008, Taconite Ridge wind farm construction completed.
In 2007, Minnesota Power made a second 25-year wind power purchase agreement
2007 Contracts/Agreements
with FPL.
In September 2007, Minnesota Power's site permit application got approval from the
2007 Others Minnesota Public Utilities Commission and started construction on Taconite Ridge wind
farm, near Virginia, Minnesota.
On 1st January 2006, the Taconite Harbor was directed to non regulated power
2006 Others
generation as per the resource plan of the company.
In December 2006, the Development of Regional Impact (DRI) was approved for
2006 Others
Ormond Crossings by the city of Ormond Beach.
In December 2006, Minnesota Power started purchasing all the energy generated from
2006 Others
the new 50-MW Oliver Wind I Energy Center.
In 2005, the company exit from the Water Services business by selling its waste water
2005 Others
assets in Georgia.
On April 1, 2005, the Rainy River Energy completed the assignment of its power
2005 Others
purchase agreement with LSP-Kendall Energy, LLC.
On December 30, 2005 the company sold its telecommunication subsidiary, Eventis
2005 Others
Telecom.