News of the week

NE Minnesota investor-owned utility Allete sold for $6.2 billion

A Canadian pension board and a New York-based investment firm have agreed to acquire Allete, the parent company of Minnesota Power, for $6.2 billion. The purchase price of $67 per share will take the company private pending approval from shareholders and regulators.

Allete serves about 150,000 customers in northeastern Minnesota. The company also owns two energy companies: a North Dakota coal mine and the Superior Water, Light and Power utility in Wisconsin.The deal ensures the company's headquarters remain in Duluth and maintains local management. The acquisition is expected to be completed by mid-2025.

To read more, click here.

US introduces new tariffs on Chinese batteries, EVs, and more

The Biden administration unveiled tariff increases targeting key goods made in China, including electric vehicles, batteries, critical minerals, semiconductors, and solar cells. United States Trade Representative Katherine Tai announced the retention of existing Section 301 tariffs on China and the imposition of higher import taxes in strategic sectors, covering $18 billion worth of imports in clean energy and technology.

The move aims to protect US manufacturers from China's trade practices and address concerns about supply chain vulnerabilities. Tariffs on Chinese-produced EVs will rise to 100 percent, while those on semiconductors, solar cells, and syringes will increase to 50 percent in 2024. Tariffs on critical minerals like natural graphite and permanent magnets will reach 25 percent in 2026. The Biden administration has advocated for onshoring EV and battery manufacturing and diversifying critical mineral supply chains away from China. China's Ministry of Commerce criticized the tariffs, vowing to defend its rights and interests. An exclusion process for certain machinery used in domestic manufacturing will be implemented, with a comment period set to open soon.

To read more, click here.

Please complete the 2024 salary survey

In April, MMUA sent an invitation to complete the 2024 salary survey to those listed as survey respondents at each member utility. Annually, MMUA conducts a survey of salaries being paid within the municipal utilities space in Minnesota. Both members and nonmembers are encouraged to respond. Once the data has been gathered, all participating communities will have access to the results. Thank you in advance for providing information on your town's salary practices!

If you have any questions or believe the survey was sent to the wrong person within your utility, please contact MMUA Organizational Development and Human Resources Manager Shelly Dau. The deadline to complete the survey is Friday, May 24.

APPA supports Water Resources Development Act provisions

On May 9, the American Public Power Association (APPA) issued a supporting letter for four provisions proposed by committee members for inclusion in the Water Resources Development Act (WRDA). These provisions, if included, would impact the value of power resources from Army Corps of Engineers-operated dams sold to municipal utilities and rural electric cooperatives.

The supported provisions include preserving Power Marketing Administrations' ratemaking authority, applying Dam Safety Assurance Authority to modifications, codifying a compromise at Stockton Lake, and directing the completion of the WRDA 2022 timeline for power authorization at the Willamette Valley Project.

To read more, click here.

Call for MMUA award nominations

We remind you that MMUA's Nominations and Awards Committee is accepting nominations for MMUA's 2024 industry awards. This is a great way to recognize a municipal utility colleague, a public official, or a municipal utility system for showing leadership, innovation and providing an example for others to follow.

Nomination forms for the various awards can be downloaded from our website by clicking here. All nominations will be considered. The deadline for 2024 submissions is June 30. The awards will be presented at the MMUA Summer Conference in Fargo/Moorhead on August 21.

Funding opportunities

Solar for Schools Grant Program

The Minnesota Department of Commerce Division of Energy Resources requests proposals from qualified schools throughout Minnesota for the Solar for Schools Grant Program (reference number: COMM_SFS05_20240110). The program, created by the State Legislature (Minn. Stat. 216C.375), is designed to provide grants to stimulate the installation of solar energy systems while using the opportunity to integrate renewable energy use into the school’s curriculum. Public schools, K-12 as well as Minnesota State Colleges and Universities, Tribal Contract and Cooperative Districts are eligible for funding based on financial need.

The full application is due Wednesday, June 7, 2024. For more information, click here.

Looking ahead

Minnesota Public Power Walleye Tournament

June 1

Bladow Beach Resort (Ottertail)

Registration deadline: May 17

Time to register is running out for the Minnesota Public Power Walleye Tournament! Last year's tournament raised $3,300 for post-secondary line work programs in Minnesota. We hope you can join and help us have another record-breaking year: the more we fish, the more we give!

"Public power" is inclusive of all Minnesota electric cooperatives, municipal utilities, and industry affiliates and suppliers. All are welcome to participate in this event, whether you have worked in the industry or not. This fun, friendly competition offers cash prizes for top-placing teams and the largest walleye. 

For complete details about the event and to register, please click here.

As always, thank you for your association with MMUA and your commitment to delivering excellent service through locally owned utility assets in your community. Have a great week!

Christian Glanville

Marketing and Member Relations Manager

Direct: 763.746.0727 / Cell: 612.655.0598

Fax: 763.551.0459

cglanville@mmua.org | www.mmua.org

To download a copy of this email, click here.

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