2009-2010 community investment report
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Minnesota Power Community Investment ReportTRANSCRIPT
Dear Friends,
These are interesting and challenging times. Everyone who lives and works in the
Northland has been touched by the recession, personally or through someone they
know. As one of the region’s largest corporate citizens, Minnesota Power, an ALLETE
company, is eager to help lead recovery.
We don’t believe in standing still. Energy in Motion—Minnesota Power’s 2009-2010
Community Investment Report details steps we are taking as a company and as committed
individuals to move communities forward to a bright future. These include:
Major investments in emission-reduction technologies, new and expanded wind and
biomass developments, and transmission upgrades to ensure a robust, reliable and
environmentally responsible power supply—while creating hundreds of well-paying
construction jobs
Responsible land management, thoughtful use of natural resources, and a commitment
to help customers make choices that conserve energy and save money in their homes,
businesses and communities
Innovative conservation programs that encourage greater understanding of energy
usage and provide practical tools to help customers use energy more efficiently—saving
energy, offsetting rising costs, and benefitting the environment
Workforce development partnerships that connect the region’s industries and
educators, plus scholarships to reward college students for pursuing fields that match
regional workforce needs
Leadership in economic development efforts that stimulate sustainable business growth
and expansion
Charitable giving through the Minnesota Power Foundation that preserves the
environment, advances education, supports health and human services, encourages
community involvement, and promotes arts and culture
Employee volunteerism, civic engagement and participation in the United Way and
other campaigns to help those in need
Health, wellness and safety programs that ensure the wellbeing of our employees and
their families, contractor training for injury-free worksites, energy education in area
schools, and teacher workshops that promote energy safety and conservation
Please join me in thanking all of Minnesota Power’s employees, customers, shareholders
and partners who live their values every day and put their energy toward making our
region the best it can be.
Sincerely,
Don Shippar, Chairman and CEO, ALLETE
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Jeff
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Cover: Photo of runner courtesy of Jeff Frey & Associates
r e l i a b i l i t y
s t e w a r d s h i p
c o n s e r v a t i o n
o p p o r t u n i t y
s a f e t y
v a l u e s i n m o t i o n
p r o s p e r i t y
Energy
p h i l a n t h r o p y
reliability M e e t i n g F u t u r e D e m a n d
S h a p i n g R e s p o n s i b l e E n e r g y P o l i c y
“People need power to ensure their quality of life. Customers have a certain expectation.
When it is not there, they rely on us to get out and return it as quickly as we can.”
John Muehlbauer, Line Operations Superintendent, “Minnesota Values”
2
E lectricity is more than an essential commodity. It provides comfort, security,
convenience and a high quality of life. It brightens homes and offices, warms
living spaces, powers appliances, drives industry and delivers information. People
in the Northland depend on electricity—and they depend on Minnesota Power
to deliver it.
Minnesota Power and its affiliated Wisconsin utility, Superior Water, Light & Power,
generate and transmit reliable, competitively priced electric power to 155,000
retail customers and 16 municipalities in northern Minnesota and Douglas County,
Wisconsin. Customers include hundreds of businesses and several large industrial
operations, including taconite producers, paper mills and pipeline companies.
Reliability is crucial to keep businesses operating smoothly and residential customers
satisfied. Minnesota Power continually works to monitor, understand and improve
reliability in a cost-effective way and is proud of its performance.
“We are committed to reliability and spend time and money efficiently to meet
the expectations of our customers,” said Steve Benoit, director of distribution,
Minnesota Power.
One recent effort has focused on integrating Minnesota Power’s interactive voice
response and outage management systems. This allows the utility to collect and
understand outages faster so it can respond and restore service quickly. Speed and
efficiency depend on customers using the automated voice system or Web site to
report outages.
Smart meters also are being tested for residential and commercial use. This new
technology will provide unprecedented communication between Minnesota Power
and its customers, improving reliability while helping customers better understand
and manage the way they use electricity.
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M e e t i n g F u t u r e D e m a n d
E lectric power is a key component of mining, papermaking and pipeline industries—
some of Minnesota Power’s largest key customers. Major industrial projects in
various stages of planning and development promise well-paying jobs and a boost to
the region’s economy. These include the new Mesabi Nugget plant in Hoyt Lakes, Essar
Steel Minnesota’s proposed integrated steel mill, and an Enbridge pipeline expansion that
will link Alberta, Canada, with Murphy Oil Refinery’s growing operations in Superior,
Wisconsin. Minnesota Power is prepared to meet the energy needs of these resource-
based industries and customers of all sizes for decades to come.
Over the past three years, Minnesota Power has invested nearly one billion dollars in its
electric system to ensure safe, reliable service and meet mandates for lower emissions
and increased renewable energy. It remains competitive by managing costs, adhering to
its values, and investing for the long term.
Minnesota Power has joined a consortium of Upper Midwest utilities in an initiative called
CapX2020 to upgrade the region’s transmission grid. The acronym stands for capacity
expansion needed by 2020.
CapX2020 utilities are spearheading one of the largest multi-state transmission grid
upgrades in the country. It includes four projects that will be “shovel ready” in 2010.
These expansions will add 700 miles of transmission line in Minnesota and Wisconsin and
create thousands of manufacturing, construction and engineering jobs. The utility group
is working closely with local governments and landowners to communicate the need and
minimize impacts on the environment.
Although rate increases have been necessary to offset rising costs of producing and
delivering energy, Minnesota Power customers still enjoy some of the most competitively
priced electricity in the country.
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S h a p i n g R e s p o n s i b l e E n e r g y P o l i c y
E nergy policy is being debated at all levels of government. Minnesota Power’s legislative
team works to ensure that federal, state and local lawmakers understand the full
impacts of proposed laws and regulations on the company and the region it serves.
“The overarching goal is to make sure elected public officials have solid information so
they can make informed decisions when it comes to energy and environmental policy
matters,” said Bill Libro, director of federal affairs, ALLETE/Minnesota Power.
Being involved in national organizations, such as the Lignite Energy Council (LEC), helps
Minnesota Power leverage resources and educate policymakers. Minnesota Power owns
BNI Coal, a lignite mine in North Dakota. Most electricity produced in North Dakota
is exported, primarily to Minnesota. Federal climate change initiatives to reduce carbon
emissions from power plants were main topics at the LEC’s 2009 annual meeting. Libro
provided industry perspective as a panelist with other energy experts and government
officials.
In 2009, Minnesota Power hosted numerous lawmakers at its northern Minnesota
facilities, including U. S. Senator Al Franken, U. S. Senator Amy Klobuchar and the Legislative-
Citizen Commission on Minnesota Resources (LCCMR). The LCCMR is made up of 10
state legislators and seven private citizens. Members and their staffs toured Minnesota
Power’s Fond du Lac Dam and participated in an Iron Range visit that highlighted Taconite
Ridge Wind Energy Center. The experience helped lawmakers understand Minnesota
Power’s progress toward meeting state renewable energy mandates and the costs
associated with purchasing required technology and building necessary infrastructure.
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stewardshipR e d u c i n g E m i s s i o n s
A d v a n c i n g R e n e w a b l e E n e r g y
M a n a g i n g L a n d s & L a k e s
“We think it is just good business to take care of the environment. It is not taken for granted.
It is an expectation that environmental stewardship is a core value.”
Mike Polzin, Renewable Fuels Coordinator, “Minnesota Values”
E c o Te a m — L e a d i n g b y E x a m p l e
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A clean, healthy environment is important to everyone. Minnesota Power
is committed to further reducing emissions at its coal-fired power
plants. Over the past few years, it has invested hundreds of millions of dollars
in advance of governmental mandates to upgrade its generating facilities with
state-of-the-art emission-control technology and equipment.
This includes $�00 million in retrofits at Boswell Energy Center in Cohasset
to improve efficiency and reduce mercury, sulfur dioxide, nitrogen oxide
(NOx) and particulate emissions by up to 90 percent on some units. The
largest component was an overhaul of Boswell Unit �. The mammoth
project required eight stories of scaffolding inside a huge boiler and
created approximately 1,000 construction jobs at the peak of activity. It was
completed on schedule in November 2009 with minimal downtime and an
outstanding safety record.
“We were very pleased with the quality of work and the flexibility of the
construction schedule,” said Josh Skelton, operations manager, Minnesota
Power. “Well over one million hours of work were completed with virtually
zero injuries.”
With its new environmental controls, Boswell Unit � rivals any new coal-fired
plant being built today at a far lower cost. Upgrades on Boswell Units 1, 2
and � also have been completed and will significantly reduce NOx emissions.
A turbine replacement on Unit � will improve efficiency, generating an
additional 60 MW of electricity with no net increase in emissions.
R e d u c i n g E m i s s i o n s
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wind North Dakota’s powerful winds are a rich source
of renewable energy. Minnesota Power plans to harness that
potential with a new 75 MW commercial wind project near
Center, North Dakota. The $180 million Bison I Wind Energy
Center will be constructed over two years and completed in
2011. It will feature �� enormous turbines with an annual energy
output of �00,000 MWh—enough to power 25,000 homes per
year. Blades, towers and nacelles for the project will be shipped
through the Port of Duluth-Superior, providing jobs for port
workers and ground transportation companies that specialize
in oversized cargo.
Minnesota Power has long-term agreements to purchase 98 MW
of electric output from two other wind farms in Oliver County,
North Dakota. It recently acquired a �65-mile, 250-kilovolt direct
current transmission line to deliver this renewable wind energy
from North Dakota to customers in Minnesota. Recycling an
existing line rather than building new is a strategic move that will
bring long-term cost savings for customers.
Minnesota Power was producing and distributing renewable energy long before it was cool to be “green.” It has operated the
largest hydropower system in Minnesota for more than a century and continues to expand its renewable energy portfolio
with major investments in wind power and biomass projects. Under Minnesota law, the state’s electric utilities must produce
25 percent of their energy from renewable sources by 2025. Minnesota Power is nearly halfway to achieving this ambitious goal
and on track to meet it well ahead of schedule.
A d v a n c i n g R e n e w a b l e E n e r g y
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Meanwhile, Minnesota Power’s 25 MW Taconite Ridge
Wind Energy Center is meeting expectations and generating
renewable energy on the Iron Range. The facility is a model of
sustainable design. Minnesota Power is seeking Leadership in
Energy and Environmental Design (LEED) Gold Certification
for the Taconite Ridge operations and maintenance building,
which houses the wind turbine controls.
The wind energy industry has potential to benefit northern
Minnesota beyond providing “green” power. It could be a
source of new jobs and manufacturing. A number of wind
energy component manufacturers have visited the region,
working with Minnesota Power and other members of
the Area Partnership for Economic Expansion to explore
opportunities for expansion or relocation. A reception held
during the 2009 American Wind Energy Association meeting
in Chicago introduced more than 100 industry representatives
to the Northland’s strategic benefits. Minnesota Power played
a key role in organizing that networking event and brought a
credible electric utility perspective to the conversation.
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wood Northland forests present growing opportunities for biomass, or
renewable fuel made from organic matter. Fast growing tree species, forest
residue and wood waste are viable sources of energy, and Minnesota Power is
investing in projects that convert these products into electricity. In September
2009, the company purchased steam boilers and wood-handling facilities at the
Hibbard Renewable Energy Center on Duluth’s waterfront from the City of
Duluth. The Hibbard plant burns wood waste to produce steam for NewPage
Corporation’s pulp and paper mill. Minnesota Power plans to invest $22 million
in upgrading the facility. This will triple its biomass production capacity from
70,000 MWh to 210,000 MWh and supply renewable energy to both the paper
mill and other Minnesota Power customers.
Minnesota Power operates a similar biomass facility in Grand Rapids, providing
steam and electricity to the UPM Blandin paper mill using wood waste from
area loggers for fuel. Rapids Energy Center is stockpiling timber and brush being
cleared for a major Enbridge pipeline expansion through northern Minnesota
and will burn it to generate additional electricity. It illustrates how developing
key partnerships can contribute to meeting environmental goals.
Managing area forests to support a sustainable biomass industry is very important
to Minnesota Power. Staff members recently traveled with a �0-member
coalition to sites in Minnesota, Canada, Finland and Sweden as part of the
Blandin Foundation’s Vital Forests Vital Communities initiative. This “Seeing
the Forest AND the Trees” tour raised awareness of how other countries
successfully manage forests and forest productivity.
“We need to understand how to use our forest resources for the highest value,”
said Steve Betzler, key account manager, Minnesota Power, who participated in
the international forest productivity tour. “Finland has similar weather, trees and
soil, but its forests are managed more extensively and are far more productive.
Some of their strategies are transferable to our region.”
Minnesota Power also is interested in the carbon implications of biomass. It has
provided research funding to the University of Minnesota and the Minnesota
Forest Resource Council to advance knowledge of carbon science as it relates
to biomass and reforestation.
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water The power of moving water has been generating electricity
in the Northland for more than a century. Minnesota Power is the largest
hydroelectric producer in Minnesota and owns and operates 11 hydropower
facilities. It continually maintains and modernizes its system to ensure a steady
flow of clean, renewable energy, while considering conservation, fish and
wildlife habitat protection, recreational opportunities and other beneficial uses
of rivers.
Schools and community groups often schedule guided tours of the Thomson
Hydroelectric Station in Jay Cooke State Park to learn more about this powerful
resource. Other facilities, including the Little Falls Hydroelectric Station, are
opened to the public on special occasions, such as the annual Little Falls Dam
Festival. Along with generating its own hydroelectricity, Minnesota Power has
long-term agreements to purchase supplies from Manitoba Hydro in Canada.
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M a n a g i n g L a n d s & L a k e s
M innesota Power is privileged to be one of the largest private property owners
in northern Minnesota. Its hydroelectric system includes reservoir lakes that
feature some of the region’s most beautiful shorelines, islands and wildlife habitats. Much of
the lakefront property is leased to Northland families for homes and cabins, maintained as
public boat launches and recreation areas, and preserved for environmental education. Large
tracts have been designated for conservation so these treasured resources are available to
future generations.
Stewardship is a core value at Minnesota Power. The company strives to balance a variety
of uses, demands and expectations on its own property and encourages others to do the
same with woodland management programs for landowners and logger education. The
Boulder Lake Management Area, established in 1991, is an 8,250-acre outdoor classroom
that demonstrates integrated management through interpretive trails, public programs and
formal environmental education activities. The goal is to protect lands that have important
natural resources while encouraging their responsible use for other public benefits.
Spruc ing up Boswe l l A team of 20 Minnesota Power employees joined local high school
and college students for a special Arbor Day event at Boswell Energy Center. The group planted
an additional 4,000 white spruce seedlings to a tree windbreak originally planted in 2008. The
wall of trees will help prevent erosion and assist in managing blowing dust at the site. Tree planting
also removes greenhouse gases from the atmosphere.
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E c o Te a m — L e a d i n g b y E x a m p l e
E nergy and resource efficiency begins at home. At Minnesota Power, an employee-
led Eco Team continually looks for ways to consume less energy and minimize waste
by educating workers and families about energy efficiency, recycling, water conservation
and other sustainability practices.
“The Eco Team was formed by a group of concerned employees who wanted to make
positive changes without spending a lot of money,” said Karen Virta, call center supervisor,
who helps coordinate Eco Team activities at Herbert Service Center in Duluth.
Herbert Service Center has a culture of conservation. There are traditional recycling
bins at many locations, energy-efficient lights with occupancy sensors, an e-waste trailer
for obsolete electronics, and collection sites for old office equipment, oil, cable, wire and
wood pallets that could be recycled or reused. People turn off computers at the end of
the day, dry their hands with super-efficient blowers, and print on two sides of a page
instead of one. Fluorescent light bulbs are used and disposed of following Environmental
Protection Agency and Minnesota Pollution Control Agency guidelines.
Similar efforts are underway at Minnesota Power’s general office building and other
facilities—customized by employees at each site.
“Saving energy and reducing waste are really up to each individual,” Virta said. “A lot of
small victories add up.”
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conservation O n e H o m e
O n e B u s i n e s s
“Conservation needs to be a personal choice. Each one of us has to make a decision to save
energy and get the most out of our energy dollars. Minnesota Power’s role is to help you
make a difference in your home, business and community.”
George Agriesti, Senior Marketing Analyst, Conservation Improvement Program, “Minnesota Values”
O n e C o m m u n i t y
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O n e H o m e
T he first step toward using energy more efficiently is to understand how it currently
is used. Your Home Energy Report is a new tool developed by Minnesota Power
to help residential customers save energy. Households that complete an online survey
at www.mnpower.com/homeenergyreport receive a customized report with strategies
for immediate and long-term home energy savings. The response may lead to a smart
metering pilot program that would give homeowners even more control of their energy
decisions.
“In times of increasing energy costs, it is important to give customers information about
how they use energy and advice to use it more efficiently,” said Tina Koecher, Conservation
Improvement Program administrator, Minnesota Power.
Another tool developed in 2009 and planned for broad implementation in 2010 is Home
Performance, an expanded energy-audit program that includes sophisticated benchmarking
tools and building diagnostics. Early results show many homeowners could reduce annual
energy consumption (combined gas and electric) 20 to �0 percent by implementing cost-
effective measures. Collaborative efforts with Duluth and Park Rapids and the gas utilities
serving these areas are underway. Both cities plan to establish low interest revolving loan
funds for residential energy-efficiency improvements using federal stimulus dollars. This
would complement current conservation program offerings and has the potential to
remove hurdles to implementing efficiency improvements.
Minnesota Power has a history of educating home construction professionals about energy
efficiency and offering incentives for high performance housing. For 20 years, it has hosted
the annual Energy Design Conference & Expo in Duluth, an event that draws nationally
recognized presenters, dozens of vendors, and more than 1,000 attendees each year to
learn about cutting-edge conservation topics involving construction products, systems and
related issues.
The utility’s Triple E New Construction Program provides rebates for homes that meet
stringent standards for energy efficiency, including those set by ENERGY STAR® for new
homes. In 2009, Minnesota Power was honored for these efforts with an ENERGY STAR®
Leadership in Housing Award.
It may seem strange, but Minnesota Power wants customers
to use less energy. Conservation is necessary to meet the region’s future
energy needs. It saves money, offsets rising energy costs, and is good for the
environment. It is also crucial to achieving government-mandated targets for
renewable energy and greenhouse gas emissions.
Every household, business and community has the power to make positive
energy choices in their daily lives. Minnesota Power helps customers achieve
their conservation goals by providing information and incentives that make
energy-saving choices easy, affordable and comfortable.
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O n e B u s i n e s s
I n today’s economy, businesses of all sizes are looking for ways to save
energy, improve productivity, lower costs and boost environmental
performance. Minnesota Power helps commercial customers accomplish these
goals with resources and incentives for energy conservation improvements. It
provides design review, energy auditing and PowerGrant rebates for energy-
saving projects, plus research grants to test innovative technology.
First National Plaza in Cloquet, Minn., recently was renovated to include one of
the most advanced heating, cooling and ventilation systems in the world. It uses
variable refrigerant flow zoning (VRFZ) to capture heat from areas that are too
warm and pipe it to zones where heat is needed. The technology is common in
Asia, Europe and other parts of the world. A research grant through Minnesota
Power’s conservation program helped fund the project to determine if energy-
efficient VRFZ is effective in northern Minnesota.
Outdoor induction lighting is another energy-efficient technology being tested
in the Northland. It was installed at the Minnesota Air National Guard base in
Duluth. Base officials worked with Minnesota Power to reinvest PowerGrant
rebates from other conservation projects to pay for the new lights—saving
taxpayers thousands of dollars.
The Duluth Entertainment Convention Center expansion is the subject of another
Minnesota Power research study, on the energy-saving impact of commissioning
and retro-commissioning. It will determine whether a systematic process of
verifying and documenting that all building systems are installed properly and
interact with each other as planned improves energy performance.
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Communities across the Northland are learning energy choices make a
difference. One example is Crosby-Ironton School District. The district is
engaged in a pilot program that connects Schools for Energy Efficiency (SEE),
an award-winning K-12 energy conservation program, with utility rebates for
measurable, verifiable results. Minnesota Power and the district’s gas supplier are
monitoring and comparing quarterly energy usage against baseline information.
They are rebating energy savings, building an account the school district can use
for additional energy-efficiency improvements.
The partnership also includes Minnesota Power’s Learn & Earn, an energy education
program that teaches students about home energy conservation and raises money
for schools through the sale of energy-efficient lighting products. A similar tool is
available for higher educational institutions. The University of Minnesota Duluth
(UMD) and Minnesota Power have partnered on multiple “A Brighter UMD”
energy events to promote energy-efficient lighting on campus and raise money for
U-Pass, which allows students and employees to ride city buses for free.
Linking energy education and conservation incentives to worthy community
causes supports Minnesota Power’s role as a corporate citizen. Save & Benefit—
Ending Homelessness in St. Louis County was a partnership between Minnesota
Power, St. Louis County, the United Way and area congregations. The campaign
challenged churches and synagogues to address social concerns of homelessness
by conserving energy in their own homes. Minnesota Power provided rebates
and incentives to encourage people to buy ENERGY-STAR®-rated light bulbs and
appliances and to turn in old refrigerators and freezers for recycling. United Way
organizations received donations for every item sold or collected. The effort raised
$7,800 for programs that help the homeless in St. Louis County. An earlier Great
Refrigerator Roundup partnership between Minnesota Power, St. Louis County
and the Salvation Army raised $10,000 for HeatShare, a program that assists low
income households pay winter heating bills.
These two community events saved enough energy to power �9 homes for a
year. The carbon equivalent would be taking 106 cars off the road. As world-
renowned anthropologist Margaret Meade once said, “Never doubt that a small
group of committed citizens can change the world.”
O n e C o m m u n i t y
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opportunityP r o m o t i n g P e e r P o w e r
I n s p i r i n g S u c c e s s
E n c o u r a g i n g C i v i c L e a d e r s h i p
“We have a supportive work environment where employees are encouraged to believe in
themselves and help one another learn and grow.”
Deb Amberg, Senior Vice President, General Counsel and Secretary
H o n o r i n g S e r v i c e
C o n n e c t i n g Vo l u n t e e r s
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M innesota Power employees are talented, committed and dedicated.
The company works hard to provide a safe, supportive, healthy work
environment where people thrive.
Those with leadership potential and interest are given opportunities to advance.
That explains why senior management at Minnesota Power and ALLETE tends to
be “homegrown.” Offering employees experiences that help them grow and a
framework of shared values create thoughtful, principled leaders who are confident
in their abilities and responsibilities.
I n s p i r i n g S u c c e s s
M innesota Power is a large complex organization with many departments
and multiple sites. An informal program called Peer Power helps
women of various ages and occupations in the company stay connected and build
community.
Inspired by a similar leadership circle started by Deb Amberg, senior vice president,
general counsel and secretary, Bethany Owen, director of transmission regulatory
compliance and business support, sponsors Peer Power to encourage and inspire
women working outside the general office building who might be interested in
leadership positions. The group meets to network, discuss formal leadership
training, and learn from successful women in the company and community.
“Peer Power is creating an encouraging environment for women of very diverse
backgrounds and experiences,” Amberg said. “Participants in this and other
leadership groups are excited about the culture of success at Minnesota Power.”
P r o m o t i n g P e e r P o w e r
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E n c o u r a g i n g C i v i c L e a d e r s h i p
Community involvement is a hallmark of true leadership. Minnesota Power and its parent company,
ALLETE, encourage employees to share their leadership skills in ways that move communities
forward. Men and women at all levels of the company are sought after as volunteer members of
nonprofit boards.
Some serve in high profile roles with broad influence. For example, Dave McMillan, senior vice
president of marketing, regulatory and public affairs, ALLETE, chairs the Minnesota Chamber of
Commerce board of directors for 2009-2010. The board sets public policy priorities for the statewide
business community, communicates business interests to state lawmakers, and develops strategies to
ensure Minnesota businesses can grow and succeed.
Inez Wildwood, manager of workforce and talent development, ALLETE, serves on the Minnesota
Governor’s Workforce Development Council, the Minnesota Job Skills Partnership Board, and
numerous other workforce-related initiatives. That tireless energy earned her a 2009 Trailblazer
Exemplary Business Leadership Award from the Insight Center for Community Economic Development
and the National Network of Sector Partners. The award recognized her as an outstanding force in
building and promoting workforce initiatives and creating new opportunities for workers.
Creating new opportunities for the entire region is the goal of Nancy Aronson Norr, manager of
regional development, Minnesota Power. She serves in many capacities, including chair of the Duluth
Airport Authority. She helped lead the board through multiple years of planning for a new $65 million
terminal that broke ground in fall 2009.
“This new terminal project will give our area an economic boost, both in the short term with the
200-plus construction jobs that it creates and also in the long term by supporting competitive air
service and globally engaged businesses that sustain our community,” Aronson Norr said at the
groundbreaking.
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H o n o r i n g S e r v i c e
M ilitary service is a proud tradition. Minnesota Power is honored to support
employees and their family members who are engaged around the world
and at home in the armed forces. The North Dakota National Guard recently
recognized BNI Coal, a Minnesota Power affiliate, as a patriotic employer. BNI
General Manager Wade Boeshans also received an individual Freedom Team Salute
Commendation from the U. S. Army, honoring his outstanding support and sacrifice
as an Army employer. He was nominated by SPC Scott W. Becknell, one of three BNI
employees serving tours in Kosovo.
C o n n e c t i n g Vo l u n t e e r s
I t feels good to volunteer. Minnesota Power employees get a lot of satisfaction
from using their time and talents to help area nonprofits, schools, churches and
other organizations serving area needs. A new initiative called Community Connections
makes it easier for employees to match their volunteer interests with the needs of
nonprofits. One click on an Intranet link, and people can access a whole database of
regional volunteer openings and opportunities.
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safety P r o m o t i n g G o o d H e a l t h
“Over the past few years, we have seen businesses throughout Minnesota put
significant resources toward keeping their job sites and workplaces safe, but
Minnesota Power leads the way.”
Steve Sviggum, Commissioner, Minnesota Department of Labor and Industry
D e m a n d i n g S a f e t y
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S afety is vital in the utility business. Minnesota Power’s outstanding safety record is no accident. Sending every
person home unhurt at the end of the day takes total commitment. Management, union leaders and employees
cooperate to ensure a safe working environment. Safety improvement teams review and audit each site for safety, identify
potential hazards, and make sure they are corrected.
This vigilance has earned Minnesota Power the right to display MNSTAR flags at all of its 28 sites through 201�. MNSTAR is
a certification program of the Minnesota Department of Labor and Industry. It recognizes excellence in safety and health
management that exceeds OSHA standards. Minnesota Power has been a MNSTAR corporation since 2000. Superior
Water, Light & Power, a Minnesota Power affiliate, also was honored for its safety performance in 2009. It was one of 17
Wisconsin companies to receive a Wisconsin Corporate Safety Award.
Many Minnesota Power employees are so well trained in safety, they serve as first responders in their local communities.
That high level of preparation saved a life in 2009, when a contractor working at Boswell Energy Center suffered a heart
attack and an employee acted quickly to assist. The Boswell Unit � retrofit project had an outstanding safety record with
more than one million work hours and virtually zero lost-time injuries.
Contractors who work near power lines and in Minnesota Power facilities need to recognize the potential dangers of
electricity and use precautions for their own safety and that of the community. Minnesota Power conducts extensive
contractor training and emergency response exercises. It supports community emergency preparedness. In 2009,
Minnesota Power Foundation awarded grants to support fire and ambulance services in two North Dakota counties and
in Cohasset, areas in which company operations are expanding.
D e m a n d i n g S a f e t y
H ealth and wellness are part of the daily routine at Minnesota Power. Employees often spend early mornings,
lunch hours or evenings exercising or enjoying fitness classes in onsite wellness centers. The company offers
flu shots, interest-free wellness loans, smoking cessation incentives and clubs dedicated to walking, running, skiing and
other team sports to encourage healthy, active lifestyles. It is widely recognized as a leader for its exceptional health and
wellness initiatives. “We invest in programs that keep our people active and involved,” said Glen Porter, vice president of
human resources, ALLETE. “Healthy, engaged workers are happier and more productive.”
P r o m o t i n g G o o d H e a l t h
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prosperityS t r e n g t h e n i n g I n d u s t r i e s
G r o w i n g B u s i n e s s e s
“In challenging economic times, it is vitally important for a region to strengthen its core
industries and cultivate new businesses with the potential for growth.”
Nancy Aronson Norr, Manager, Regional Development
C e l e b r a t i n g A b i l i t i e s
D e v e l o p i n g Ta l e n t s
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S t r e n g t h e n i n g I n d u s t r i e s
A new era in Iron Range mining began in December 2009 when Mesabi Nugget began
producing value-added iron nuggets at its new plant near Hoyt Lakes. The project,
located on the former site of LTV Steel, is a partnership between Steel Dynamics, Inc.,
and Kobe Steel. It has created around 70 permanent jobs.
Mesabi Nugget requires robust, reliable power to operate its plant. Minnesota Power
built a transmission line to the site and constructed a substation to meet the facility’s long-
term energy needs. It also drew upon the expertise of Superior Water, Light & Power to
help develop onsite infrastructure for natural gas.
Minnesota Power has supported redeveloping the property since LTV Steel closed its
plant in 2001, putting 1,�00 people out of work. It was a key partner in the East Range
Economic Response Team, formed to address the closure, and currently helps set strategy
for the Range Readiness Initiative. Range Readiness is a coordinated regional response to
meet the housing, workforce and infrastructure needs of Mesabi Nugget and other large
industrial projects.
Several of those projects are mining related, including PolyMet, which is poised to begin
mining copper, nickel and other nonferrous metals on the Iron Range. In 2009, Minnesota
Power joined the Minnesota Department of Employment and Economic Development,
Minnesota Mining, the Iron Mining Association and Iron Range Resources to commission
a new mining impact study, which will help decision makers understand the industry’s
potential for the region.
One benefit is its ability to attract vendors and service suppliers. Owners of Hydro-Klean,
an Iowa-based company, announced their intent to open a satellite office in Duluth while
in town for a Society of Mining Engineers event. The company provides hydro-blasting,
power vacuuming and other services to industrial and municipal clients.
Business owners researched the region through www.NorthlandConnection.com.
Northland Connection staff helped them locate a site, and the Area Partnership for
Economic Expansion (APEX ) provided resumes and workforce assistance. Hydro-Klean
hopes to employ 25 to �0 workers in Duluth over the next few years. Minnesota Power is
an active investor and founder of both APEX and Northland Connection.
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Companies of all sizes need money to grow. Minnesota Power connects
commercial customers with regional resources, including loan funds,
equity capital and other gap financing. The Arrowhead Regional Development
Commission’s Revolving Loan Fund is one of those resources. In 2009, Minnesota
Power helped The Northspan Group write a grant to the U.S. Department of
Commerce Economic Development Administration to recapitalize the fund with
more than $2 million. This new funding will provide flexible low interest loans for
businesses engaged in manufacturing, value-added products, tourism, back office
operations and innovative technology.
Minnesota Power’s economic development team also is actively recruiting investors
for the Lake Superior Angel Network and supporting the Northland Foundation’s
efforts to connect area businesses with Granite Equity, a new source of equity capital
in the region. One of Granite Equity’s focus areas is business succession, an issue
facing many Northland companies as the population ages. A succession strategies
forum was held recently to educate regional business owners about options as they
consider selling or transferring ownership to a new generation.
G r o w i n g B u s i n e s s e s
P eople with the drive and motivation to overcome obstacles make terrific
workers. Disability Mentoring Day encourages employers to meet students
and job seekers with disabilities who are interested in exploring career opportunities.
The event marked its tenth year with a national launch and career fair in Duluth.
Minnesota Power was the lead local sponsor. Company representatives made
presentations, held mock interviews with students, and staffed a booth where job
seekers could learn more about the company and its workforce needs.
“Individuals with disabilities bring many skills and talents to the workforce,” said
Nicole Johnson, supervisor of human resources, ALLETE/Minnesota Power. “It is
exciting to see the number of students interested in finding jobs and their wealth of
self confidence and determination.”
Several Minnesota Power employees have joined E-Connect, a new program
through which they can mentor high school students with disabilities online and
via e-mail.
C e l e b r a t i n g A b i l i t i e s
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D e v e l o p i n g Ta l e n t s
R egional success depends on growing and developing a talented workforce,
so young people have the right skills to find rewarding jobs in the Northland.
Minnesota Power works with area high schools and college outreach programs to help
students assess their career options. Staff members attend job fairs, visit classrooms, make
presentations and arrange career shadowing.
Many jobs at Minnesota Power and other regional companies require specific technical skills
that take time to develop. Minnesota Power invests in innovative educational programs that
match the Northland’s current and future hiring needs. These include mobile engineering
and wind technology labs that bring cutting-edge resources to colleges and work sites,
creative degree programs and curriculum development.
Iron Range Engineering is a first-of-its-kind program in Minnesota. It allows students
who have finished two years of engineering prerequisites at state colleges in Northeast
Minnesota to complete their third and fourth years of a bachelor’s degree by working with
professional engineers at companies such as Minnesota Power. The program builds upon a
successful engineering program at Itasca Community College. It is hosted by Mesabi Range
Community & Technical College in Virginia, and four-year degrees are awarded through
Minnesota State University-Mankato.
Mesabi Range also has launched a new associate’s degree program called Energy Technical
Specialist-Wind to support renewable energy development in the region. Minnesota
Power personnel helped shape the curriculum and will provide internships and access to
Taconite Ridge Wind Energy Center. Minnesota Power partnered with Itasca Community
College to develop and launch a new associate in applied science degree in Industrial
Energy—Power Generation, which prepares students to work in generating facilities
across the region.
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philanthropy
“As a company, we are defined not only by the outstanding service and value we
provide customers and stakeholders but by our commitment to being a responsible
corporate citizen.”
Peggy Hanson, Director, Minnesota Power Foundation
S t i m u l a t i n g M i n d s
R a i s i n g E n e r g y A w a r e n e s s
R e w a r d i n g S t u d e n t A c h i e v e m e n t
B u i l d i n g H e a l t h y C o m m u n i t i e s
P r e s e r v i n g H i s t o r y & H e r i t a g e
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C ha r i t ab l e g i v i ng is vital ly impor tant
in today’s economic climate. Minnesota Power has a long history of
supporting organizations and programs that help cities, neighborhoods
and residents thrive. Through partnerships with the Salvation Army,
Arrowhead Economic Opportunity Agency and other financial
assistance programs, the company provides services to help low
income customers meet their basic needs and pay their utility bills.
Minnesota Power Foundation distributes hundreds of thousands of
dollars each year to qualified nonprofits and institutions that advance
education, the environment, community service, youth development,
arts and culture, and health and human services. These contributions,
along with corporate sponsorships, memberships and direct donations
mirror the company’s values and the priorities of its employees and
customers.
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2009 Community GivingArts & Community $220,70�
Education $188,865
Environment $�0,056
Health & Human Services $1�8,18�
United Way $260,000
Youth Development $12�,557
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B uilding radio-controlled airplanes and designing machines to sort
marbles by color were among the cool activities students enjoyed
during the Itasca Community College (ICC) Summer Engineering Camps
in 2009. The camps expose junior and senior high school students to the
fun and exciting world of engineering, while improving their problem-solving
skills and building teamwork. A grant from the Minnesota Power Foundation
helped ICC purchase new laptops, robo controllers, radio controllers and
other equipment for the camps.
Meanwhile, budding engineers and urban planners from Cook County
Middle School traveled to Washington, D.C. in 2009 to compete in the
National Engineers Week Future City Competition®. The students designed
Aquaterra, an eco-friendly city that incorporates vertical farming, fuel-
efficient transportation systems, water technologies, and wind and wave
energy to generate power. The competition engages students in creating
computer-generated and �-D models of a city of the future. Minnesota
Power Foundation provided a grant for the learning adventure.
“Aquaterra was the ‘greenest looking’ future city at both the state and
national competitions,” said Kaye Tavernier, teacher advisor. “The five-month
project was a growing and learning experience for all.”
S t i m u l a t i n g M i n d s
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H ockey is a northern Minnesota tradition, and the U.S. Hockey Hall of Fame in
Eveleth is a source of pride and major attraction for the region. A donation
from Minnesota Power has helped the facility take its show on the road. A colorful rolling
museum trailer, painted with murals and filled with traveling exhibits, is now a common
sight at area hockey games, tournaments and parades.
“The U.S. Hockey Hall of Fame is a landmark in our service territory,” said Dale Sundin,
regional account manager, Minnesota Power. “This exposure will draw new visitors and
share the history and passions of our region with others.”
P r e s e r v i n g H i s t o r y & H e r i t a g e
R a i s i n g E n e r g y A w a r e n e s s
“T he Electron” Energy Education Trailer is a popular attraction at Hartley
Nature Center in Duluth. It is a fun, hands-on way for kids of all ages to
learn about alternative energy sources and conservation using musical instruments and
gadgets powered by different energy sources. Minnesota Power helped fund “The
Electron” to demonstrate solar, wind, biodiesel, hydro and human energy potential.
Minnesota Power offers a full range of resources to educate customers about energy and its
safe, responsible use. These include K-12 classroom materials, such as interactive games,
experiments and activity books. A live, in-school safety education program featuring The
National Theatre for Children and Louie the Lightning Bug will begin visiting area schools
in 2010.
Each summer, area teachers are invited to learn about the Upper Midwest’s lignite coal
industry through a summer seminar called “Lignite: Our Regional Resource” at Bismarck
State College in North Dakota. Minnesota Power pays tuition and ground transportation
for 10 teachers to participate. The seminar includes a site visit to BNI Coal, a Minnesota
Power subsidiary.
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R e w a r d i n g S t u d e n t A c h i e v e m e n t
P aying for college becomes more challenging for families every
year. Minnesota Power Foundation assists area students with two
scholarship programs.
The Community Involvement Scholarship program provides 20 area high
school students with $2,500 scholarships, based on their commitment to
volunteerism and involvement in their communities. Over the years, it has
helped hundreds of civic-minded youth achieve their higher education goals.
The New Generation Scholarship program is designed to help current
students at colleges in Minnesota Power’s service territory complete degrees
that match regional workforce needs. It rewards committed individuals
who are positioning themselves to find jobs and live in the Northland.
The program provides $1,000 scholarships for students enrolled in two-
year associate degree programs and $2,500 for those enrolled in four-year
bachelor degree programs. In 2010, New Generation Scholarship eligibility
will extend into North Dakota, where BNI Coal is located and Minnesota
Power is building the Bison I Wind Energy Center.
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H ealthy, sustainable communities are great places to live, work,
do business and raise families. Neighborhoods across Duluth are
transforming themselves into vibrant communities of choice through At
Home in Duluth, a collaboration headed by Duluth Local Initiatives Support
Corporation (Duluth LISC).
Many positive activities were highlighted during At Home in Duluth’s
“Connecting the Dots” Neighborhood Showcase and Assembly in
September 2009. They included investments in housing, streetscapes,
storefronts, homeowner education programs, workforce training and
community safety initiatives. Five Neighborhood Heroes were honored,
as well. Minnesota Power is a longtime supporter of Duluth LISC’s
neighborhood revitalization efforts and was a key sponsor of “Connecting
the Dots.”
Central Minnesota communities also are taking a grassroots approach to
planning and development. The Healthy Communities Partnership (HCP),
a program of the Initiative Foundation in Little Falls, provides training and
resources to engage citizens and all segments of a community in creating
shared visions and action plans. Four to five communities can participate
each year, and those that complete the process are eligible for grants to
implement their ideas. Minnesota Power Foundation supports HCP and
other programs of the Initiative Foundation, including Youth as Resources,
which involves young people in community change.
B u i l d i n g H e a l t h y C o m m u n i t i e s
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Yo u r positive energy s e t s g r e a t t h i n g s i n m o t i o n .
Thank you to each and every Minnesota Power employee, customer, partner and stakeholder
for doing your part to move communities forward.
For more information, please contact:
Peggy Hanson | Community Relations & Minnesota Power Foundation Director
(218) �55-��80 | [email protected]
Visit our Web sites:
www.mnpower.com | www.mnpowerfoundation.org
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