ALLETE Inc. (Duluth, Minnesota, U.S.) has signed an agreement with American Transmission Co. (ATC) that will allow ALLETE, through its Wisconsin subsidiary Rainy River Energy Corp.-Wisconsin, to invest US$60 million in cash in ATC by the end of 2006, which would represent an estimated 9% ownership interest in ATC. ATC, with assets of approximately $1.4 billion, is a Wisconsin-based public utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan and Illinois. The investment is subject to review by the Public Service Commission of Wisconsin. The FERC approved the transaction on Dec. 16, 2005.
“ATC has plans to invest approximately $3.4 billion over the next 10 years to upgrade the region's transmission infrastructure,” said Jose Delgado, ATC's president and CEO.