UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ______________ Commission File Number 1-3548 ALLETE, Inc. (Exact name of registrant as specified in its charter) Minnesota 41-0418150 (State ...

ALLETE, Inc. (NYSE:ALE) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET Company Participants Bethany Owen - Chair, President, and Chief Executive Officer Steve Morris - Senior Vice President and Chief Financial Officer Frank Frederickson - Minnesota Power's Vice President of Customer Experience and Engineering Services Jeff Scissons - ALLETE Clean Energy's Chief Financial and Strategy Officer Conference Call Participants Richard Sunderland - J.P. Morgan Dariusz Lozny - Bank of America Brian Russo - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ______________ Commission File Number 1-3548 ALLETE, Inc. (Exact name of registrant as specified in its charter) Minnesota 41-0418150 (State ...

ALLETE, Inc. (NYSE:ALE) Q4 2022 Earnings Conference Call February 16, 2023 10:00 AM ET Company Representatives Bethany Owen - Chair, President & CEO Steve Morris - Senior Vice President, Chief Financial Officer Frank Frederickson - Minnesota Power's Vice President of Customer Experience and Engineering Services Jeff Scissons - ALLETE Clean Energy's Chief Financial and Strategy Officer Conference Call Participants Richard Sunderland - J.P. Morgan Brian Russo - Sidoti Alex Mortimer - Mizuho Operator Good day, ...

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the year ended December 31, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ______________ Commission File Number 1-3548 ALLETE, Inc. (Exact name of registrant as specified in its charter) Minnesota 41-0418150 (State or other juris ...

Financial Data and Key Metrics Changes - ALLETE reported Q3 2022 earnings of $0.59 per share, compared to $0.53 per share in Q3 2021, reflecting a net income increase from $27.6 million to $33.7 million [4][16] - The regulated operations segment net income increased to $38.3 million from $32.9 million year-over-year, primarily due to interim rate revenue at Minnesota Power [17] - ALLETE Clean Energy recorded a net loss of $7.3 million in Q3 2022, compared to a net loss of $800,000 in Q3 2021, impacted by a reserve for the Northern Wind project and market volatility [18] Business Line Data and Key Metrics Changes - The regulated operations segment saw higher earnings due to interim rates, but was partially offset by lower retail sales and higher costs from a purchase power agreement [17] - ALLETE Clean Energy's losses were attributed to congestion issues and lower wind resources compared to the previous year [18] - Corporate and Other businesses, including New Energy, reported net income of $2.7 million, a recovery from a net loss of $4.5 million in 2021, driven by higher earnings from the Nobles 2 wind energy facility [19] Market Data and Key Metrics Changes - Minnesota Power's proposed agreement aims to significantly increase renewable energy supply, adding up to 400 megawatts of wind and 300 megawatts of solar energy over the next 15 years [5][6] - The Inflation Reduction Act is expected to benefit ALLETE's businesses by providing new investment options and improving cash flow through tax credit monetization [10][11] Company Strategy and Development Direction - ALLETE's strategy focuses on sustainability, with a commitment to providing 100% carbon-free energy by 2050 [7] - The company plans significant capital investments, estimating approximately $2.7 billion through 2027 for clean energy projects and transmission upgrades [22] - ALLETE aims to leverage its geographical position to advance interregional transmission projects that support reliability and clean energy transformation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of the earnings guidance range of $3.60 to $3.90 per share for the full year [4][20] - The company anticipates strong fourth-quarter earnings driven by New Energy's project pipeline and favorable performance in regulated operations [20] - Management highlighted the importance of the upcoming decision on Minnesota Power's integrated resource plan, which could influence future capital expenditure plans [39] Other Important Information - ALLETE's financial position is supported by a strong balance sheet, with cash and cash equivalents of $42 million and a debt-to-capital ratio of 37% as of September 30, 2022 [23] - The company is actively addressing congestion issues at its Caddo wind energy facility and is focused on infrastructure upgrades to mitigate these challenges [14][65] Q&A Session Summary Question: Insights on fourth-quarter expectations - Management indicated that fourth-quarter earnings will benefit from contributions from New Energy, higher earnings from Nobles, and improved performance in regulated operations [28] Question: Profile of New Energy's project pipeline - The 2,000 megawatt pipeline includes projects at various stages of development, with confidence in their ability to meet plans [30] Question: Clarification on capital expenditure increases - The increase in capital expenditures is related to the original IRP projects, pending regulatory approval [31][33] Question: Stakeholders involved in the IRP settlement - A diverse coalition of stakeholders, including clean energy organizations and local communities, is involved in the proposed agreement [35] Question: Cost expectations for solar and wind projects - Current costs are reflected in the updated capital plan, but inflation could impact future projects [38] Question: Additional transmission needs for new resources - Management acknowledged the need for additional infrastructure to support the transition to more renewables [43] Question: Financing considerations and equity needs - The company aims to maintain a balanced capital structure and leverage IRA benefits to reduce equity needs [55] Question: Overall market sentiment for new project development - The market remains robust for clean energy projects, with strong demand and opportunities for redevelopment of the legacy fleet [67]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ______________ Commission File Number 1-3548 ALLETE, Inc. (Exact name of registrant as specified in its charter) Minnesota 41-0418150 (S ...

Financial Data and Key Metrics Changes - ALLETE reported second quarter 2022 earnings of $0.67 per share compared to $0.53 per share in 2021, with net income of $37.6 million versus $27.9 million in the prior year [5][12] - The net income for the quarter included transaction costs of $1.6 million after tax and purchase price accounting impacts of $4 million after tax related to the acquisition of New Energy Equity [12][16] Business Segment Data and Key Metrics Changes - The Regulated Operations segment recorded net income of $29.6 million in Q2 2022, up from $21.5 million in 2021, primarily due to higher net income at Minnesota Power from interim rate implementation [13] - ALLETE Clean Energy's net income was $5.8 million in Q2 2022, compared to $5.1 million in 2021, reflecting higher wind resources [14] - Corporate and Other businesses, including New Energy, reported net income of $2.2 million, up from $1.3 million in 2021, despite a partial quarter net loss from New Energy of $1.1 million after tax [15] Market Data and Key Metrics Changes - Minnesota Power's taconite customers started the year with full production, but Cleveland-Cliffs announced idling of its Northshore Mining facility, affecting production forecasts [14] - The anticipated production for taconite is slightly lower than the sales forecast of approximately 35 million tons due to the idling [14][28] Company Strategy and Development Direction - ALLETE is focused on clean energy transformation, with significant investments in transmission projects, including a $970 million transmission line project approved by MISO [8][20] - The company is optimistic about the proposed Inflation Reduction Act, which could enhance the value of clean energy projects and tax credits [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of ALLETE's strategy and the positive impact of the Inflation Reduction Act on future projects [10][21] - The company is actively engaged in rate case proceedings to support infrastructure upgrades and maintain service quality [19] Other Important Information - ALLETE's financial position is strong, with cash and cash equivalents of $75 million and a debt-to-capital ratio of 37% as of June 30, 2022 [17] - The company welcomed Charles Matthews to the Board of Directors, bringing extensive energy industry experience [20] Q&A Session Summary Question: Impact of the IRA Act on credit metrics - Management is still evaluating the overall credit metric impact but believes it could be positive, especially since they are not affected by the minimum tax [22][23] Question: Tracking of New Energy's performance against full year expectations - New Energy is on track with expectations for the quarter and projections for the remainder of the year [24][25] Question: Sales to industrial customers and production forecasts - Production is expected to be slightly lower than the forecast of 35 million tons, but generally in line with forecasting assumptions [27][28] Question: Value of the transmission line strategy - The DC line and planned expansion are critical for enhancing the reliability and resiliency of the Upper Midwestern grid [30][31] Question: Capability to serve new large power customers - The company has a robust transmission system and is prepared to serve new mining projects as they develop [38]

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) This section presents unaudited financial statements, management's analysis, market risk disclosures, and internal controls [Item 1. Consolidated Financial Statements - Unaudited](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20-%20Unaudited) This section presents ALLETE's unaudited consolidated financial statements, including balance sheet, income, and cash flows, highlighting asset growth and increased net income [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) ALLETE's total assets grew to **$6.84 billion** by June 30, 2022, driven by the New Energy acquisition, with total equity increasing to **$3.36 billion** Consolidated Balance Sheet Highlights (Millions) | Account | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $660.0 | $291.3 | | **Property, Plant and Equipment – Net** | $5,027.1 | $5,100.2 | | **Goodwill and Intangible Assets – Net** | $151.1 | $0.8 | | **Total Assets** | **$6,839.0** | **$6,435.0** | | **Total Current Liabilities** | $709.0 | $543.4 | | **Total Liabilities** | **$3,480.1** | **$3,488.7** | | **Total Equity** | **$3,358.9** | **$2,946.3** | | **Total Liabilities and Equity** | **$6,839.0** | **$6,435.0** | [Consolidated Statement of Income](index=7&type=section&id=Consolidated%20Statement%20of%20Income) Net income attributable to ALLETE increased to **$37.6 million** in Q2 2022 and **$103.9 million** for the six-month period, driven by higher operating revenues Statement of Income Highlights (Millions, Except Per Share) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | $373.1 | $335.6 | $756.6 | $674.8 | | **Operating Income** | $13.7 | $28.2 | $67.1 | $70.2 | | **Net Income Attributable to ALLETE** | $37.6 | $27.9 | $103.9 | $79.7 | | **Diluted Earnings Per Share** | $0.67 | $0.53 | $1.89 | $1.53 | [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Cash used in operating activities totaled **$7.9 million** for the six months ended June 30, 2022, while financing activities provided **$289.1 million** Cash Flow Summary (Millions) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Cash (used in) provided by Operating Activities** | $(7.9) | $105.7 | | **Cash used in Investing Activities** | $(247.2) | $(305.7) | | **Cash provided by Financing Activities** | $289.1 | $202.1 | | **Change in Cash, Cash Equivalents and Restricted Cash** | $34.0 | $2.1 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail significant accounting policies, the New Energy acquisition, regulatory rate cases, environmental compliance costs, and segment performance - On April 15, 2022, ALLETE acquired New Energy for **$165.5 million** in cash and assumed debt[40](index=40&type=chunk) - Minnesota Power filed for an **18% retail rate increase** in Minnesota, with an interim increase effective January 1, 2022, while SWL&P sought a **3.6% increase** in Wisconsin[30](index=30&type=chunk)[31](index=31&type=chunk) - Compliance costs for Coal Combustion Residuals (CCR) are estimated between **$65 million and $120 million** over the next 15 years[82](index=82&type=chunk) Net Income Attributable to ALLETE by Segment (Millions) | Segment | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | | Regulated Operations | $81.1 | $66.5 | | ALLETE Clean Energy | $22.3 | $12.5 | | Corporate and Other | $0.5 | $0.7 | | **Total** | **$103.9** | **$79.7** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting increased net income per diluted share to **$1.89**, driven by interim rates and improved clean energy performance, alongside strategic acquisitions and capital plans [Comparison of the Quarters Ended June 30, 2022 and 2021](index=34&type=section&id=Comparison%20of%20the%20Quarters%20Ended) Q2 2022 saw increased net income across Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments, driven by interim rates and strategic gains - Regulated Operations utility revenue increased by **$18.3 million** in Q2 2022, primarily due to **$21.4 million** from Minnesota Power's interim rates[118](index=118&type=chunk)[119](index=119&type=chunk) - Regulated utility kWh sales to industrial customers decreased **9.0%** in Q2 2022 due to the temporary idling of Cliffs' Northshore mine[119](index=119&type=chunk)[121](index=121&type=chunk) - ALLETE Clean Energy's Other Income increased by **$10.2 million** due to a gain from removing a PSA liability for the Northern Wind project[127](index=127&type=chunk) [Comparison of the Six Months Ended June 30, 2022 and 2021](index=40&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended) Six-month net income increased for Regulated Operations and ALLETE Clean Energy, driven by interim rates and higher wind resources, while Corporate and Other saw a slight decline due to acquisition costs - Regulated Operations utility revenue increased by **$54.3 million** for the six-month period, primarily from **$45.7 million** in Minnesota Power interim rates[133](index=133&type=chunk)[134](index=134&type=chunk) - ALLETE Clean Energy's operating revenue increased by **$6.9 million**, or **16%**, due to higher wind resources and no prior-year winter storm impact[140](index=140&type=chunk) - Corporate and Other net income included a **$1.1 million net loss** from New Energy, incorporating **$4.0 million** in accounting adjustments and **$3.0 million** in transaction costs[145](index=145&type=chunk) [Critical Accounting Policies](index=44&type=section&id=Critical%20Accounting%20Policies) Management identifies critical accounting policies, including regulatory accounting and impairment, adding 'Valuation of Business Combinations and Resulting Goodwill' post-acquisition - The New Energy acquisition on April 15, 2022, made **valuation of business combinations and goodwill** a critical accounting policy[147](index=147&type=chunk) - Goodwill impairment testing is performed annually in Q4 or when impairment is indicated, requiring significant fair value estimates based on projected cash flows[149](index=149&type=chunk) [Outlook](index=45&type=section&id=Outlook) ALLETE targets **5-7%** annual EPS growth, focusing on regulated utility operations, clean energy expansion, and a major transmission line project - The company targets **5% to 7%** average annual earnings per share growth long-term[150](index=150&type=chunk) - Minnesota Power and Great River Energy plan a **$970 million**, 150-mile, 345-kV transmission line, with ALLETE's share at approximately **50%**, in service by 2030[161](index=161&type=chunk) - The New Energy acquisition adds a development pipeline of over **2,000 MW** of renewable projects across 26 states[166](index=166&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) ALLETE maintains strong liquidity with **$74.6 million** cash and **$377.3 million** available credit, projecting **$210 million** in 2022 capital expenditures and holding investment-grade credit ratings Liquidity Position as of June 30, 2022 | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $74.6 million | | Available consolidated lines of credit | $377.3 million | | Debt-to-capital ratio | 37% | - Capital expenditures for 2022 are projected at approximately **$210 million**, with **$94.0 million** incurred through June 30, 2022[177](index=177&type=chunk) Credit Ratings | Agency | Issuer Credit Rating | | :--- | :--- | | S&P Global Ratings | BBB | | Moody's | Baa1 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages commodity price, power marketing credit, and interest rate risks, with regulatory mechanisms mitigating commodity exposure and limited variable rate debt - Commodity price risk in regulated operations is significantly mitigated by regulatory cost recovery frameworks[182](index=182&type=chunk) - A 100 basis point increase in interest rates would raise annual pre-tax interest expense by approximately **$3.0 million** based on June 30, 2022, variable rate debt[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - Disclosure controls and procedures were deemed effective by management as of June 30, 2022[185](index=185&type=chunk) - No material changes to internal control over financial reporting occurred during Q2 2022[186](index=186&type=chunk) [Part II. Other Information](index=53&type=section&id=Part%20II.%20Other%20Information) This section provides updates on legal proceedings, risk factors, equity sales, mine safety disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Notes 2 and 7 for information on material legal and regulatory proceedings, with no new material disclosures in this section - Material legal and regulatory proceedings are referenced in Note 2 and Note 7 of the Consolidated Financial Statements[188](index=188&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, highlighting new concerns regarding volatile electricity prices impacting ALLETE Clean Energy's wind facilities with contracts for differences - A new risk factor addresses volatile electricity prices impacting ALLETE Clean Energy's wind facilities with commercial and industrial customer contracts[189](index=189&type=chunk) - Diamond Spring and Caddo facilities' contracts for differences expose them to adverse financial impacts from market price volatility and settlement differences[190](index=190&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None [Item 4. Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violations and regulatory matters, as required by the Dodd-Frank Act, are detailed in Exhibit 95 of this Form 10-Q - Mine safety violation information, as required by the Dodd-Frank Act, is included in Exhibit 95 to this Form 10-Q[192](index=192&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications, mine safety disclosures, earnings release, and XBRL data - Required certifications by the CEO and CFO, mine safety disclosures, the Q2 2022 earnings news release, and XBRL data files are included as exhibits[193](index=193&type=chunk)

ALLETE, Inc. (NYSE:ALE) Q1 2022 Results Conference Call May 5, 2022 10:00 AM ET Company Participants Bethany Owen - President & Chief Executive Officer Steve Morris - Senior Vice President and Chief Financial Officer Frank Frederickson - Vice President of Customer Experience, Minnesota Power Jeff Scissons - Chief Financial and Strategy Officer, ALLETE Clean Energy's Operator Good day, and welcome to the ALLETE First Quarter 2022 Financial Results Call. Today's call is being recorded. Certain statements cont ...