On this page of StockholderLetter.com we present the 3/22/2023 shareholder letter from ALLETE INC — ticker symbol ALE. Reading current and past ALE letters to shareholders can bring important insights into the investment thesis.
2023 Proxy Materials Letter to Shareholders Notice of Meeting and Proxy Statement for the 2023 Annual Meeting of Shareholders 2022 Form 10-K
March 2023 Dear ALLETE shareholders, These are incredibly exciting times in the energy industry and at ALLETE, and as we move into 2023, we are executing our sustainability in action strategy in a very big way. For the past two years, ALLETE ranked rst among U.S.-based investor-owned utilities for investment in renewable energy based on market capitalization. We are leading the way to a sustainable clean-energy future, while working hard to ensure we get this transformation right for our customers, our communities, and the climate to make our world a better place. A signi cant achievement in 2022 was ALLETE s acquisition of New Energy Equity, one of the nation s leading and most respected distributed solar developers. As we approach New Energy Equity s one-year anniversary as part of the ALLETE family of companies, the value of the talented team and pro table business is notable, with contributions to earnings and a project pipeline that have exceeded our expectations. Minnesota Power is wrapping up work on three solar projects that will add more than 20 megawatts of clean energy to its system. The three projects are part of an approximately $40 million investment approved by the Minnesota Public Utilities Commission (MPUC) that also is designed to boost northeastern Minnesota s economic recovery from the COVID-19 pandemic. These renewable energy projects, completed with local labor and locally manufactured panels, are just one example of how ALLETE is putting sustainability into action. It has never been clearer that transmission investments will be critical to meeting clean-energy goals and transforming the electric grid. And, transmission plays an important role in ALLETE s strategy. For example, in July 2022, Minnesota Power and Great River Energy announced plans to build an approximately 150-mile transmission line from northern Minnesota to central Minnesota that will support grid reliability in the Upper Midwest. In January 2023, ALLETE and Grid United announced our intent to jointly develop the North Plains Connector, a new, approximately 385-mile high-voltage direct-current (HVDC) transmission line from central North Dakota to Colstrip, Montana. It will be the nation s rst transmission connection between three regional U.S. electric energy markets the Midcontinent Independent System Operator, the Western Interconnection and the Southwest Power Pool to increase resiliency and reliability across a vast area with diverse weather patterns. This is exactly the type of project and vision that is needed to ensure the successful transformation of our nation s electric grid. As ALLETE and our companies continue to lead the way to a sustainable clean-energy future, alignment with state regulators and policymakers is critical. In November 2022, the MPUC approved Minnesota Power s 15-year Integrated Resource Plan, the regulatory roadmap for the company s EnergyForward vision to provide 100% carbon-free energy by 2050 while maintaining safe, reliable and affordable electric serve to customers. Building on an extensive two-year process that involved discussions with customers and a wide variety of stakeholders, Minnesota Power reached a joint agreement with stakeholders including clean-energy organizations, labor groups, and local communities that host the company s last remaining coal- red power plant.
The MPUC approved all of the elements of the joint agreement, including the addition of up to 700 megawatts of wind and solar power and a signi cant investment in battery storage by 2030 to support the addition of renewable energy. In early February this year, a new Minnesota law was enacted requiring state utilities to deliver carbonfree energy by 2040, 10 years earlier than the company vision laid out by Minnesota Power. The new law comes with some off-ramps to protect energy reliability and affordability, but it will require a shift in how we plan for and develop the clean-energy economy to meet a goal that is now a decade earlier. And, constructive regulatory outcomes will be critical to our success. There is a lot of work ahead of us reaching clean-energy goals will require thoughtful planning to ensure we keep reliability and affordability at the forefront. Achieving this ambitious goal will require leveraging new technologies through accelerated Minnesota Power investments. At the same time, we expect the new Minnesota law to create opportunities for our other ALLETE companies as demand for wind and solar generation is expected to grow. As we navigate the complex and ever-changing road to our nation s carbon-free future, it is important to remember that ALLETE and our companies have long been leaders in the clean-energy transformation, and we have momentum on our side. Minnesota Power was the rst Minnesota utility to reach 50% renewable energy and has a solid record of exceeding state conservation objectives and state renewable energy goals ahead of deadlines. While we serve our customers with excellence and provide exciting opportunities for our employees, we also take great pride in creating value for our shareholders. In February, the ALLETE Board of Directors approved an increased dividend of over 4%. ALLETE has continued to pay an attractive dividend, while strategically positioning all of our businesses for sustainable growth over the long term. I could not be more proud of our talented, experienced and innovative ALLETE team, and I am excited about our future as we continue to put sustainability into action with tremendous growth opportunities in front of us. As part of our journey toward a carbon-free energy future, we know that we have a responsibility to get this transition right for the climate, our customers, our communities and our investors all without leaving anyone behind. To learn more about how we at ALLETE embrace sustainability in all its forms, please see our Corporate Sustainability Report at www.allete.com. As always, thank you for your interest and investment in ALLETE. Bethany M. Owen ALLETE Chair, President and CEO
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ALE 3/22/2023 Shareholder/Stockholder Letter Transcript:

2023 Proxy Materials
    Letter to Shareholders
    Notice of Meeting and
Proxy Statement for the
2023 Annual Meeting
of Shareholders
    2022 Form 10-K

March 2023
Dear ALLETE shareholders,
These are incredibly exciting times in the energy industry and at ALLETE,
and as we move into 2023, we are executing our    sustainability in action   
strategy in a very big way. For the past two years, ALLETE ranked    rst
among U.S.-based investor-owned utilities for investment in renewable
energy based on market capitalization. We are leading the way to a
sustainable clean-energy future, while working hard to ensure we get this
transformation right for our customers, our communities, and the climate
to make our world a better place.
A signi   cant achievement in 2022 was ALLETE   s acquisition of New Energy Equity, one of the nation   s
leading and most respected distributed solar developers. As we approach New Energy Equity   s
one-year anniversary as part of the ALLETE family of companies, the value of the talented team and
pro   table business is notable, with contributions to earnings and a project pipeline that have exceeded
our expectations.
Minnesota Power is wrapping up work on three solar projects that will add more than 20 megawatts
of clean energy to its system. The three projects are part of an approximately $40 million investment
approved by the Minnesota Public Utilities Commission (MPUC) that also is designed to boost
northeastern Minnesota   s economic recovery from the COVID-19 pandemic. These renewable energy
projects, completed with local labor and locally manufactured panels, are just one example of how
ALLETE is putting sustainability into action.
It has never been clearer that transmission investments will be critical to meeting clean-energy goals
and transforming the electric grid. And, transmission plays an important role in ALLETE   s strategy.
For example, in July 2022, Minnesota Power and Great River Energy announced plans to build an
approximately 150-mile transmission line from northern Minnesota to central Minnesota that will
support grid reliability in the Upper Midwest.
In January 2023, ALLETE and Grid United announced our intent to jointly develop the North Plains
Connector, a new, approximately 385-mile high-voltage direct-current (HVDC) transmission line from
central North Dakota to Colstrip, Montana. It will be the nation   s    rst transmission connection between
three regional U.S. electric energy markets   the Midcontinent Independent System Operator, the
Western Interconnection and the Southwest Power Pool   to increase resiliency and reliability across a
vast area with diverse weather patterns. This is exactly the type of project and vision that is needed to
ensure the successful transformation of our nation   s electric grid.
As ALLETE and our companies continue to lead the way to a sustainable clean-energy future,
alignment with state regulators and policymakers is critical.
In November 2022, the MPUC approved Minnesota Power   s 15-year Integrated Resource Plan, the
regulatory roadmap for the company   s EnergyForward vision to provide 100% carbon-free energy by
2050 while maintaining safe, reliable and affordable electric serve to customers. Building on an extensive
two-year process that involved discussions with customers and a wide variety of stakeholders,
Minnesota Power reached a joint agreement with stakeholders including clean-energy organizations,
labor groups, and local communities that host the company   s last remaining coal-   red power plant.

The MPUC approved all of the elements of the joint agreement, including the addition of up to 700
megawatts of wind and solar power and a signi   cant investment in battery storage by 2030 to support
the addition of renewable energy.
In early February this year, a new Minnesota law was enacted requiring state utilities to deliver carbonfree energy by 2040, 10 years earlier than the company vision laid out by Minnesota Power. The new
law comes with some off-ramps to protect energy reliability and affordability, but it will require a
shift in how we plan for and develop the clean-energy economy to meet a goal that is now a decade
earlier. And, constructive regulatory outcomes will be critical to our success.
There is a lot of work ahead of us   reaching clean-energy goals will require thoughtful planning to
ensure we keep reliability and affordability at the forefront. Achieving this ambitious goal will require
leveraging new technologies through accelerated Minnesota Power investments. At the same time, we
expect the new Minnesota law to create opportunities for our other ALLETE companies as demand for
wind and solar generation is expected to grow.
As we navigate the complex and ever-changing road to our nation   s carbon-free future, it is
important to remember that ALLETE and our companies have long been leaders in the clean-energy
transformation, and we have momentum on our side. Minnesota Power was the    rst Minnesota utility
to reach 50% renewable energy and has a solid record of exceeding state conservation objectives and
state renewable energy goals ahead of deadlines.
While we serve our customers with excellence and provide exciting opportunities for our employees,
we also take great pride in creating value for our shareholders. In February, the ALLETE Board of
Directors approved an increased dividend of over 4%. ALLETE has continued to pay an attractive
dividend, while strategically positioning all of our businesses for sustainable growth over the long term.
I could not be more proud of our talented, experienced and innovative ALLETE team, and I am
excited about our future as we continue to put sustainability into action with tremendous growth
opportunities in front of us. As part of our journey toward a carbon-free energy future, we know that
we have a responsibility to get this transition right for the climate, our customers, our communities and
our investors   all without leaving anyone behind. To learn more about how we at ALLETE embrace
sustainability in all its forms, please see our Corporate Sustainability Report at www.allete.com.
As always, thank you for your interest and investment in ALLETE.
Bethany M. Owen
ALLETE Chair, President and CEO



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