Milestone Reached As 15Th Shipment of Wind Components Reaches Duluth
Total Page:16
File Type:pdf, Size:1020Kb
SEPTEMBER 1, 2014 A NEWSLETTER FOR THE SHAREHOLDERS OF ALLETE, INC. Milestone reached as 15th shipment of wind components reaches Duluth Minnesota Power and the Duluth Port reached a milestone this summer when the 15th ship bearing wind generation equipment destined for Minnesota Power’s growing renewable energy installation in North Dakota sailed into the harbor beneath the Aerial Lift Bridge. The BBC cargo ship Peter Roenna Boswell Unit 4 environmental retrofit: Construction has reached a summer peak at Minnesota arrived in Duluth on July 14 carrying Power’s Boswell Energy Center in Cohasset, Minn., where dozens of contractors and employees are more than two dozen renewable wind working on a mercury emissions reduction project at Unit 4. It was named project of the year by the Pile energy components after a voyage from Driving Contractors Association for a bulkhead installed along a portion of Blackwater Lake. Costs to Brande, Denmark, where the equipment is implement the environmental retrofit are estimated at approximately $300 million. manufactured by Siemens A.G. Two other shiploads of Siemens wind equipment bound for North Dakota arrived at the Minnesota Power’s Great Northern Transmission port in June; two more are expected Line highlighted in White House press release before the end of September. Since the port first started handling these The White House issued a press release Minnesota Power has been closely project cargoes for Minnesota Power, in June applauding the United States coordinating with the DOE on the Great a total of 15 shiploads of wind energy Department of Energy’s involvement Northern Transmission Line. The project equipment – including nacelle cooling in Minnesota Power’s Great Northern requires a Presidential Permit from the units and generators – have crossed the Transmission Line project as an example DOE because the transmission line will Atlantic Ocean, sailing through the St. of President Obama’s renewed effort to cross the international border between Lawrence Seaway and across the Great accelerate and modernize the federal Manitoba and Minnesota and the DOE is Lakes into Duluth. The components are infrastructure permitting process. the lead federal agency. then loaded onto trucks for delivery to Minnesota Power has applied to the The Great Northern Transmission the Bison Wind Energy Center near New DOE for the Presidential Permit and Line will facilitate the delivery of 883 Salem, N.D. also filed a route permit application for megawatts (MW) of renewable hydro The first shipments in 2006 included the 500-kilovolt line with the Minnesota power into the U.S. Beginning in 2020, blades for a 98-megawatt wind farm Public Utilities Commission, which Minnesota Power will use the line to in Oliver County, N.D., from which determined the application complete deliver 250 MW from Manitoba Hydro to Minnesota Power purchases all the electric on July 2. The DOE and the state of Minnesota’s Iron Range through a power generation. That wind installation was Minnesota held environmental scoping purchase agreement. constructed, and is owned by, NextEra meetings in July. (continued on back) (continued on back) Dear Shareholders, We hope this summer has been as busy and provide reliable and affordable energy using a balanced mix of rewarding for you as it has been for us at generation sources in an environmentally responsible way. ALLETE. In the midst of pushing through major energy projects, we hosted several We need this diverse mix of energy sources to serve the “Hometown Hydropower” events that helped expanding needs of our diverse customers -- from the individual all of us reflect on the company’s historical apartment-dweller to the multinational taconite processor, from commitment to renewable energy. the regional medical campus to the nonferrous mining company Re-dedication gatherings were held at scenic awaiting permits to operate. hydro locations like Fond du Lac, Prairie River and Island Lake On behalf of ALLETE and its 1,600 employees, we thank you for Park, and more are scheduled as autumn approaches. your interest in our company and for your investment in us. As investors in ALLETE, you’re probably familiar with our Sincerely, major projects – the Bison wind farm expansion, the Boswell Unit 4 environmental retrofit and the planning and routing of our Great Northern Transmission Line. The resources we’re investing in them makes 2014 the largest capital spending year Alan R. Hodnik in the company’s history. It’s no coincidence that these projects Chairman, President and Chief Executive Officer lie at the heart of our EnergyForward resource strategy to Wind shipments (continued) Energy. Minnesota Power subsequently built the first three phases of its Bison Wind Energy Center adjacent to the initial wind farm located in Oliver County, N.D. Construction is ramping up at Bison 4, a 205-megawatt addition to the wind farm that will utilize larger, more powerful Siemens wind turbine generators than those installed last year in phases 2 and 3 of the project. Because the generators are more powerful, it will take only 64 turbines to produce about the same amount of electricity produced by 70 turbines in last year’s installation. The first of the 64 new wind turbine generators was erected and installed in ‘Hometown Hydropower’ a rededication of company’s renewable roots: Attendees at a “Hometown early July. Hydropower” rededication event at Minnesota Power’s Fond du Lac hydroelectric station May 23 listen as company engineers explain the installation of new equipment inside the powerhouse. Several commemorative events are being held at company hydro facilities this summer. Company’s environmental policy adviser speaks at White House lists Great Northern Transmission Line Pittsburgh EPA hearing (continued) According to the release issued by the monthly meetings with other agencies The Clean Power Plan drew hundreds President’s Office of the Press Secretary, and Minnesota Power “to ensure early of speakers to EPA hearings in four “the Administration is taking action to coordination.” cities in late July, including Mike modernize the federal infrastructure Since 2012, Minnesota Power has held Cashin, environmental policy adviser for permitting process, cutting through red more than 75 open houses and meetings Minnesota Power. tape and getting more timely decisions, with agencies, tribes, local government while protecting our communities and Cashin was one of more than 250 units, landowners and the general the environment.” speakers at the two-day hearing in public to gather input on the routing of Pittsburgh. Hearings on the proposed The Great Northern Transmission the transmission line project. federal carbon controls for coal- Line was the first project listed in the Upon receipt of all applicable permits burning power plants also took place in White House release as an example and approvals, construction of the 220- Washington, D.C., Atlanta and Denver. of how “key reforms” are already mile Great Northern line is anticipated underway. It stated the DOE initiated Cashin pointed out that Minnesota to begin in 2016. utilities and policymakers already have addressed many of the points Minnesota Power finalizes environmental identified in the plan prepared by the Environmental Protection Agency. settlement agreement with EPA, MPCA “Our early action justifies EPA revising Minnesota Power in July reached we’ve already made to reduce emissions. its Minnesota Clean Power Plan targets a settlement agreement with the It is consistent with our EnergyForward so that Minnesota consumers are not Environmental Protection Agency and resource strategy to reduce emissions, punished for the good deeds our the Minnesota Pollution Control Agency diversify our energy mix and advance forward-looking policymakers have that resolves alleged violations of the renewable energy.” already put in place and for which New Source Review provisions of the The consent decree covers Minnesota Minnesota Power’s electric customers are Clean Air Act. The agreement does not already paying,” he said at the hearing. Power’s Boswell, Laskin, Taconite include any admission of wrongdoing Harbor, and Rapids energy centers. It Cashin cited Minnesota Power’s on the part of the company. provides for more stringent emissions EnergyForward strategy as an effective Minnesota Power is one of many limits at all affected units, and the approach to moving toward a balanced utility companies in the U.S. whose option of refueling, retrofits, or mix of renewable energy, natural gas and investments in electric generation retirements at some units. It also coal. facilities were reviewed as part of includes the addition of 200 megawatts the EPA’s Coal-Fired Power Plant of wind energy. Minnesota Power will ALLETE investors eligible to Enforcement Initiative that began in also be required to spend $4.2 million join company credit union 1999. The initiative has resulted in more on environmental mitigation projects than 25 related settlements nationwide. over the next five years. The Minnesota Power Employees “The company has been in discussions Under terms of the agreement, Credit Union has expanded its field of with the EPA since 2008 to settle this Minnesota Power will also pay a $1.4 membership to include investors who matter to avoid costly litigation, in the million civil penalty. In the second hold at least five shares of ALLETE best interest of our customers and other quarter of 2014, the company recorded common stock. ALLETE investors stakeholders,” said ALLETE Senior a liability and corresponding expense interested in obtaining membership in Vice President, General Counsel and associated with the environmental the Duluth-based full-service credit union Secretary Deb Amberg. “We are pleased mitigation projects. A liability for the can dial, toll-free, 866-724-3993, or access to have reached a settlement that civil penalty was recognized in 2013. the website, www.mpecu.com. recognizes the significant investments The statements contained in this newsletter and statements that ALLETE may make orally in connection with this newsletter that are not historical facts, are forward-looking statements.