A business unit of ALLETE, Inc. (ALE), Minnesota Power, has commenced operations at the Bison 4 Wind Energy Center, a 205 megawatt (“MW”) capacity power plant. The project cost is estimated at $345 million.
With the completion of this phase, ALLETE has contributed substantially toward the achievement of Minnesota’s goal of producing 25% of energy through renewable sources. The company reached Minnesota's renewable target with more than a decade to spare.
Minnesota Power had earlier completed three phases of Bison Wind Energy Center. Bison 1, an 82 MW project with 31 turbines, was concluded in Feb 2012. Bison 2 and 3 were accomplished in Dec 2012 and together use 70 turbines to produce 210 MW of renewable energy.
Covering an area of 35 square miles, this latest phase utilizes 64 turbines to produce electricity. The power generated is transmitted to its customers via a 465-mile direct current transmission line linking North Dakota to Minnesota.
When compared to earlier phases, wind turbine generators used in Bison 4 are more efficient and powerful in the sense that these produce an almost equal amount of power at a lesser cost. The company gained approval in Jan 2014 for recovering the cost from customers for investments made in Bison 4.
With the success of this energy center, Minnesota Power has won a position as one of America’s top-10 wind power generating electric utilities. The Bison 4 farm is the largest wind facility in the country.
In Dec 2014, another ALLETE subsidiary, ALLETE Clean Energy, acquired NRG Energy, Inc.’s (NRG) 108 MW wind generation facility in Storm Lake, IA. The wind farm comprising 144 turbines was acquired for a total consideration of $15 million (read: ALLETE Buys NRG Energy's Storm Lake 1 Iowa Wind Farm).
These initiatives will help the company achieve its diversified energy target of equal coal, natural gas and renewables under the EnergyForward undertaking.
Zacks Rank
ALLETE currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the electric utility space include Huaneng Power International, Inc. (HNP) and Empresa Nacional de Electricidad S.A. (EOC). Both these stocks currently sport a Zacks Rank #1 (Strong Buy).
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