EXHIBIT 99
[ALLETE LOGO]
For Release: April 1, 2005
CONTACT: Xxxx Xxxxx
000-000-0000
xxxxxx@xxxxxx.xxx
INVESTOR Xxx Xxxxx
CONTACT: 000-000-0000
xxxxxx@xxxxxx.xxx
NEWS
ALLETE, INC. TRANSFERS XXXXXXX ENERGY AGREEMENTS
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XXXXXX, Xxxx.--ALLETE, Inc. (NYSE: ALE) announced today that its subsidiary,
Rainy River Energy Corporation, completed the assignment of its power purchase
agreement with LSP-Xxxxxxx Energy, LLC, the owner of an energy generation
facility located in Xxxxxxx County, Ill., to Constellation Energy Commodities
Group, Inc., a subsidiary of Constellation Energy Group, Inc. (NYSE: CEG). Rainy
River Energy paid Constellation Energy Commodities $73 million in cash
(approximately $46 million after taxes) to assume the power purchase agreement,
which is in effect through mid-September 2017. The tax benefits of the
transaction will be received in the first half of 2006. In addition, consent,
advisory and closing costs of approximately $5 million were incurred to complete
the transaction.
In 1999, Rainy River Energy entered into a long-term agreement to purchase
approximately 275 megawatts of nonregulated generation capacity (non-rate base
generation sold at market-based rates to the wholesale market) from the Xxxxxxx
County facility. Subsequent to that agreement, Rainy River Energy sold
approximately 130 megawatts of this capacity under long-term contracts. Those
contracts were also transferred to Constellation Energy Commodities at closing.
The Xxxxxxx County facility, located just south of Chicago, became operational
in May 2002.
"The successful exit from the Xxxxxxx County position is a crucial component of
our long-term strategy," said Xxx Xxxxxxx, ALLETE President and CEO. "We will
now be better able to focus our attention on the growth and development of
businesses that are central to our future."
ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE
provides energy services in the upper Midwest and has significant real estate
holdings in Florida. More information about the company is available on ALLETE's
Web site at xxx.xxxxxx.xxx.
THE STATEMENTS CONTAINED IN THIS RELEASE AND STATEMENTS THAT ALLETE MAY MAKE
ORALLY IN CONNECTION WITH THIS RELEASE THAT ARE NOT HISTORICAL FACTS, ARE
FORWARD-LOOKING STATEMENTS. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
PROJECTED IN THE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS
INVOLVE RISKS AND UNCERTAINTIES, AND INVESTORS ARE DIRECTED TO THE RISKS
DISCUSSED IN DOCUMENTS FILED BY ALLETE WITH THE SECURITIES AND EXCHANGE
COMMISSION.
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ALLETE - 00 XXXX XXXXXXXX XXXXXX, XXXXXX, XXXXXXXXX 00000
XXX.XXXXXX.XXX
