By Walker Orenstein

Copyright startribune

State regulators on Friday approved the sale of northern Minnesota’s largest power company to an ownership group led by a subsidiary of BlackRock, the world’s largest asset manager.

The Minnesota Public Utilities Commission (PUC) voted unanimously for the $6.2 billion sale of Duluth-based Allete, parent of Minnesota Power, siding with supporters who said the deal would guarantee money for carbon-free technology required under state law.

Opponents of the transaction argued the profit-driven buyers would drive up electric bills for Allete customers, and that private equity should not be allowed to take control of an energy company.

The PUC will still have the authority to approve or deny rate increases, as well as the company’s plans to build new wind, solar, power lines and other projects.

Katie Sieben, a DFLer who chairs the PUC, said the sale will make customer bills more affordable and the system more reliable.

“Minnesota Power does need massive amounts of investment,” she said. “That’s not due to the state’s carbon-free law, necessarily, but also due to the fact that many of the utility’s assets are at end of age and need investment.”

The vote was the last regulatory hurdle for the sale, which was already approved by the federal government and the state of Wisconsin. Minnesota Power serves 150,000 customers.

New-York based infrastructure firm Global Infrastructure Partners (GIP), a BlackRock subsidiary, will own 60% of Allete, while the Canada Pension Plan Investment Board (CPP) would own the rest.