ALLETE Makes First Investment in American Transmission Co.
ALLETE, through a subsidiary, made its first installment of a US$60 million investment in the American Transmission Company today.
ATC is a Wisconsin-based public utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan and Illinois. ALLETE signed an agreement with ATC last December that enables its subsidiary Rainy River Energy Corporation-Wisconsin to invest $60 million in cash in ATC by the end of 2006. In early May, the Public Service Commission of Wisconsin authorized an order that allowed the investment to proceed.
ALLETE's subsidiary will be responding to ATC's monthly capital calls to arrive at the total planned contribution by year end. When completed, this investment would represent an estimated 9% ownership interest in ATC. In addition, Rainy River is also eligible to participate in ATC's quarterly general equity capital calls, which would increase the total amount of this investment.
Want to use this article? Click here for options!
© 2008 Penton Media Inc.
