ALLETE, Inc. the Minnesota-based energy company that owns a wind farm operation in southern Oklahoma, reported third quarter 2019 earnings of 60 cents a share on net income of $31.2 million. The results compared to 59 cents a share a year ago on net income of $30.7 million. However, wind farm operations showed a loss for the quarter.
“Results for the quarter are as expected and we are pleased with our progress on strategic initiatives to date, as we approach the end of a successful 2019,” said ALLETE Chairman and CEO Al Hodnik.
“Construction activities in support of generating and delivering carbon-free energy are well underway,” said ALLETE President Bethany Owen. “ALLETE Clean Energy is in the final phase of construction on almost 200 megawatts of new wind generation with the South Peak and Glen Ullin facilities; and Minnesota Power will be finalizing construction activities on the Great Northern Transmission Line expected to be in service in 2020. We anticipate a very robust start to the new year as we advance further on clean energy investments for the future.”
ALLETE’s Energy Infrastructure and Related Services business, ALLETE Clean Energy, recorded a third quarter 2019 net loss of $1.2 million. Earnings at ALLETE Clean Energy decreased $2.2 million from 2018, primarily due to lower revenue resulting from decreased non-cash amortization related to the expiration of power sales agreements, partially offset by additional production tax credits generated in 2019.
ALLETE Clean Energy is the firm’s segment that operates its wind farms including the Diamond Spring wind site that will provide electrical power to Fortune 500 companies Walmart and Starbucks.
The 300 MW wind project is in Murray, Johnston and Pontotoc Counties and is about 25 miles northeast of Ardmore.
Walmart has agreed to purchase 175 megawatts for 15 years, Smithfield will purchase 75 megawatts for 12 years, and Starbucks will purchase 50 megawatts for 15 years. Diamond Spring is ALLETE Clean Energy’s first project to sell wind power to corporate customers.
ALLETE purchased 100 percent interest in the wind site from the project developer, Apex Clean Energy.