2010 Community Investment Report

it’s what we value 2010-2011 Community Investment Report

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environmental stewardship community engagement safety employee growth integrity | 2 |

dear friends, It often is said that an organization’s greatest strength is its people. That certainly is true here at Minnesota Power, an ALLETE company. Our broad and diverse community of employees, investors, customers and partners define who we are as a company. They shape our values and guide how we live them every day, securing our reputation as a trusted provider of reliable, sustainable electric energy and a respected corporate citizen. It’s what we value—Minnesota Power’s 2010-2011 Community Investment

Report highlights our core values, which are reflected in our company and through relationships with those we serve. These values are being transferred to a new generation of bright, talented people in our organization to ensure a continued legacy of philanthropy and corporate citizenship that enhances our region and its quality of life. Please take a few moments to read this report and join me in thanking those dedicated individuals in our company and communities who challenge themselves to make the world brighter. Their true value lies not just in what they do—but also in how they choose to do it!

Sincerely,

Al Hodnik President and CEO, ALLETE

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community Charitable Giving

ALLETE has business and community interests in Minnesota, Wisconsin and North Dakota.

We have a genuine desire to give back to the communities we serve, both through our affiliates (Minnesota Power, Superior Water, Light & Power (SWL&P) and BNI Coal) and through the Minnesota Power Foundation. Each year, the Minnesota Power Foundation distributes hundreds of thousands of dollars to qualified nonprofits and institutions in our service area. Donations flow through community grants, scholarships, educational programs, United Way support and other efforts that advance youth, the environment, electric safety, health and human services and community involvement. Additional funds are distributed through direct corporate giving and sponsorships of important community events.

Event Sponsorship $88,000 Community Grants $133,000

2010 Total Community Giving: $923,029 Education $287,000

Community Services - $89,000

Arts & Culture $65,500

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United Way $260,500

Foundation Foundation Foundation Foundation Minnesota Power Minnesota Power

United Way Education Arts & Culture Community Services Event Sponsorship Community Grants

28% 32% 7% 10% 9% 14%

engagement

it’s what we value

Food Drive Nothing spices up a food drive like a little friendly competition. In January 2010, Minnesota Power employees collected more than 1,500 canned goods and other nonperishable food items for needy families in Duluth. The food drive was organized and spearheaded by Minnesota Power Plaza Cafe’s Karen Bray, but got a boost when teams within the accounting department challenged each other to see which could donate the most food. The winners were the CHUM food shelf and those who depend upon it, when the food weighed in at 753 pounds.

Community Involvement Scholarships Today’s high school students have busy lives, filled with school, sports, clubs, music and other activities. Yet many make time for tremendous volunteerism and community service. Minnesota Power’s Community Involvement Scholarship program rewards young people who share their time and talents giving back to their communities. Twenty scholarships of $2,500 are given each year, helping civic-minded high school seniors achieve their college goals. | 5 |

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Science Fair Volunteers

Encouraging Entrepreneurs

Minnesota Power has a culture of volunteerism that

Even the most innovative business ideas can use a boost. Winning a 2010

encourages people to get involved in local neighborhoods,

Minnesota Cup award and $20,000 in seed capital is helping Duluth-

churches, schools, clubs and organizations. A database,

based GeaCom, Inc., move its revolutionary Phrazer™ into production.

called Community Connections, links employees with

The handheld, multilingual device will enable healthcare providers and

volunteer opportunities that match their interests. Seven

their patients to overcome language barriers and communicate effectively.

Minnesota Power employees recently served as volunteer

Minnesota Power is a key member of the Arrowhead Growth Alliance, which

judges and mentors during the 2010 Northeast Minnesota

became a host sponsor of the Minnesota Cup entrepreneurial competition

Regional Science Fair at the University of Minnesota

in 2010. Regional development professionals at Minnesota Power also are

Duluth. Future scientists and engineers demonstrated

active with the Anderson Center, Northland Foundation, Area Partnership

their bright ideas and shared their inventive projects,

for Economic Expansion (APEX) and other organizations that encourage

hoping to advance to state and international competitions.

management and business development in Greater Minnesota.

Providing Resources to Business

Outstanding Partner Award

Duluth-based aviation companies are among businesses that could benefit

Minnesota Power has been a steadfast ally to the

from the newly recapitalized and expanded Arrowhead Regional Development

Northland Foundation in serving the children, families,

Commission Revolving Loan Fund (ARDC RLF). The recapitalization effort began

businesses and communities of Northeast Minnesota

in response to struggles within the aviation sector due to economic recession.

for nearly 20 years. The Northland Foundation honored

Minnesota Power Manager of Regional Development Nancy Aronson Norr, past

that relationship in November 2010 by presenting the

chair of the Duluth Airport Authority, convened stakeholders to identify industry

company and Minnesota Power Foundation with an

needs and pursue solutions. Regional partners committed more than $770,000,

award. The longstanding partnership began in 1991 when

which helped secure a $1.4 million federal EDA grant. The fund now has nearly

Minnesota Power provided funding for a Northland

$2.2 million to stimulate growth in aviation and other key industries throughout

Foundation program called Terrific Teachers. Since then,

Northeast Minnesota. Meanwhile a new terminal is under construction at Duluth

it has directed support to numerous KIDS PLUS, grant and

International Airport, further supporting the region’s economy.

business finance program activities.

“Ongoing public and private sector investment in our aviation industry and construction of a new terminal at the Duluth International Airport benefit the traveling public, encourage business development, and strengthen the region’s economic future.”

Brian Ryks, Executive Director Duluth Airport Authority

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Energy Assistance

Sporting Chance

The long winter heating season is stressful for many households, especially in

Everyone deserves a chance to enjoy the great

the current economy. Each year, Minnesota Power helps customers on low or

outdoors. The annual Sporting Chance pheasant

fixed incomes manage their fuel costs by providing energy-saving tools and by

and goose hunt hosted by BNI Coal, an ALLETE

sponsoring events like the Energy Awareness Expo at the Salvation Army in Duluth.

subsidiary, offers opportunities to hunters with

The expo invites income-eligible people to sign up for heating and weatherization

disabilities. The event grants access to lands not

assistance, learn about available resources and receive complementary energy-

otherwise open to hunting, and employees donate

saving products. “It is important to offer customers solutions and ways they can

their time to handle dogs and provide transportation

make a real difference,” said Amanda Oja, marketing analyst, Minnesota Power. In

for the hunters. Jay Volk, environmental manager,

addition, Minnesota Power partners with the Salvation Army’s HeatShare program,

BNI Coal, was presented the North Dakota Public

encouraging customers to “round up” their monthly bills for HeatShare and to make

Service Commission’s Award for Excellence in Surface

additional voluntary contributions. Minnesota Power Foundation contributes to this

Coal Mining and Reclamation for BNI’s participation

vital program, as well.

in Sporting Chance.

Itasca Youth Programs

The United Way

Minnesota Power serves many communities, each with critical

Our people “Live United” and generously support the United Way

needs and deserving organizations. Employees who live and

financially and through volunteerism. In 2010, employees of ALLETE,

work across the region help decide how philanthropic dollars

Minnesota Power, SWL&P and BNI Coal pledged more than $237,228

are spent. For example, summer programs at the Itasca County

to United Way campaigns in Minnesota, Wisconsin and North Dakota.

Family YMCA keep children in and around Grand Rapids,

The Minnesota Power Foundation contributed an additional $260,000.

Minn., active and healthy. The employee committee that

At Boswell Energy Center in Cohasset, Minn., volunteers served up a

evaluates funding requests from organizations in Itasca County

delicious way to support their local United Way with a special BBQ beef

recommended the YMCA for a 2010 grant from the Minnesota

lunch. Employees and contractors bought meal tickets to support this

Power Foundation. Members of that regional committee also

great cause. Many employees also share their time and talents during

helped build a Habitat for Humanity house in 2010 and hope

annual United Way activities, such as the Duluth area’s Chili Cook-Off

to make it an annual activity.

and Day of Caring events. | 9 |

integrity

it’s what we value

Honoring the Legacy of Don Shippar Some people are simply inspiring. Don Shippar, board chair and former president and CEO, ALLETE, is one of those larger-thanlife individuals. His 33-year career was marked by integrity and a strong commitment to giving back to the communities served

by Minnesota Power and its affiliates. In 2010, Minnesota Power Foundation honored his legacy by establishing the Don Shippar Community Leadership Award and through a major endowment to the University of Wisconsin Superior (UW-Superior).

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Don Shippar Community Leadership Award There was no shortage of nominees for the first annual Don Shippar

Don Shippar and Dr. Bob Beam Economics Program Enhancement Fund

Community Leadership Award, which recognizes company

Don Shippar was a young parent working for Minnesota Power when

employees for leadership in volunteering and community

he enrolled in UW-Superior’s Extended Degree program, hoping to

service. The first year’s recipient was Tom Lohman, a senior

complete his college education and advance his career. One faculty

engineer at Minnesota Power’s Rowe Energy Control Center and

member in particular mentored Shippar through this journey—Dr. Bob

tireless supporter of CHUM, Community Action Duluth’s Circles

Beam, a professor in the Department of Business and Economics. Shippar

of Support program and other nonprofits. Honorable mentions

returned the favor in April 2010 when he joined Al Hodnik, president

went to Pat Connell, public affairs administrative supervisor,

and CEO, ALLETE, in presenting UW-Superior with $250,000 from the

and Brian Schmidt, Rapids Energy Center operator, for their

Minnesota Power Foundation to create the Don Shippar and Dr. Bob Beam

outstanding volunteerism and service. Each received an award

Economics Program Enhancement Fund. This fund will support student

and donation to the nonprofit of their choice.

scholarships, research initiatives, internships and program enrichment.

“Tom (Lohman) is a hard worker and an outstanding coworker; his compassion, selflessness, humility, generosity and devotion touch the lives of everyone he comes in contact with—at work and in the community.”

Rob Sandstrom, Supervising Engineer (Nominated Tom Lohman for Award), Minnesota Power

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“The western area employees really stepped up to the plate to help their neighbors, even donating over $400 in cash (for Wadena tornado relief).”

Mike Harrison, Lineman, Minnesota Power

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Sharing Knowledge

Wadena Tornado Relief

Minnesota Power employees love to share their knowledge of energy with

When late spring tornadoes struck Wadena, Minn., causing widespread

area school children and community members. Company personnel eagerly

destruction, Minnesota Power’s people responded quickly. Linemen Mike

accept invitations to staff informational booths, make presentations and

Harrison and Tim Schwartz, who both have ties to Wadena, were on the

visit classrooms. Recent examples saw employees explaining wind energy

front line. Harrison, a former lineman for the City of Wadena, helped

at Iron Range Earth Festival, demonstrating “pedal power” with the Energy

crews restore power. He also initiated a food and clothing drive in the

Bike at Grand Rapids Middle School, and teaching Cloquet fourth graders

Little Falls office. Schwartz, a Wadena native, returned to clear debris

about renewable hydroelectric power. They also give tours of Minnesota

and assist friends who lost homes. Minnesota Power Foundation also

Power facilities, helping to raise awareness of how energy is generated and

responded, partnering with the Initiative Foundation of Little Falls to raise

transmitted to area homes and businesses.

online donations for tornado relief.

Honoring Those Who Served Dozens of World War II veterans got a free trip to the WWII Memorial in Washington, D.C., in September 2010, with help from a Minnesota Power Foundation grant. The Roughrider Honor Flight included veterans from North Dakota counties where ALLETE’s BNI Coal subsidiary and Minnesota Power’s Bison I Wind Energy Center are located. “The heroes of WWII waited far too long and paid too high a price for the memorial built in their honor, so we are committed to helping every able and willing veteran see it at no further cost,” said Kevin Cramer, who chairs the North Dakota Public Service Commission and the Roughrider Honor Flight Committee. He added that it is only possible with the generous help of corporate citizens like Minnesota Power.

Meanwhile, a new development in West Duluth is opening doors for area veterans by providing 16 units of affordable permanent and transitional housing, plus supportive services. Minnesota Power Foundation gave a $25,000 grant to advance the Veterans Place project, a partnership between the Minnesota Assistance Council for Veterans (MACV) and the Northern Communities Land Trust. “Over the years, hundreds of veterans’ lives will be changed by this facility, thanks to support from Minnesota Power and other partners,” said Durbin Keeney, regional

Layn Mudder, LPT Images

director, MACV. The facility was completed in December 2010.

“Thank you on behalf of every WWII veteran participating in a Roughrider Honor Flight. Your generous grant is testimony to Minnesota Power’s commitment to honor the sacrifice of our greatest generation.”

Kevin Cramer, Chair, North Dakota Public Service Commission

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safety

it’s what we value

Safety Improvement Teams Every employee has the right to work in a safe environment. Minnesota Power has 25 safety improvement teams that engage more than 200 employees in activities to keep company worksites safe and injury free.

These teams meet monthly to discuss and resolve safety issues. Team members, including both International Brotherhood of Electrical Workers union employees and management, keep current on safety trends, review facility safety plans and performance results, perform onsite safety audits, and communicate valuable safety information to their fellow employees. Vigilance toward safety has earned Minnesota Power MNSTAR certification through the Minnesota Department of Labor and Industry. The MNSTAR program recognizes excellence in safety and health management that exceeds OSHA standards.

“Minnesota Power and IBEW Local 31 continually work together to achieve zero injuries on the job, and safety improvement teams are essential for that partnership to succeed.”

Mark Glazier IBEW Local 31 | 14 |

Battling Wildfires Seasonal wildfires can threaten the safety of people and property. Minnesota Power assisted the Department of Natural Resources (DNR) in battling a major blaze between Deer River and Cohasset in spring 2010 by installing communication equipment on the roof of a building at Boswell Energy Center. Firefighters originally had placed the repeater station, a portable radio communications system, on top of an old fire lookout tower at the Grand Rapids Forest History Center but found there were too many dead spots in the transmission. Moving it to Boswell allowed the DNR to communicate with crews on the ground.

Energy Safety Education

Rescue Drills

Learning about energy safety is fun, especially when

Sirens sound and first responders spring into action, testing their ability to move quickly and

the National Theatre for Children performs the

effectively when disasters strike. Minnesota Power regularly partners with area fire departments

lessons with help from Louie the Lightning Bug. The

and rescue squads to stage mock rescue drills and disaster response training at its facilities.

new Minnesota Power safety education program

These exercises familiarize first responders with power plant facilities, equipment and onsite

began visiting area schools in 2010. Minnesota Power

resources. Many volunteer firefighters in the region’s rural communities actually work at

also offers K-12 classroom materials, such as interactive

Minnesota Power. “We have volunteer firefighters from just about every fire department in

games, experiments and activity books, to teach

Itasca County, and they work in all different divisions here at Boswell,” said Rob Coughlin, a

children about safe, responsible use of energy.

reliability engineer for general operations at Boswell Energy Center in Grand Rapids.

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employee Chamber Involvement Business leaders can have tremendous influence in their communities, and Minnesota Power encourages involvement in local business organizations. Pat Mullen, vice president of marketing and public affairs, Minnesota Power, chairs the Duluth Area Chamber of Commerce’s Military Affairs Committee. It was very instrumental in persuading the Defense Base Closure and Realignment Commission (BRAC) to remove the Duluth Air National Guard Base from its closure list. This set the stage for a new base mission and the arrival of 20 F-16CJ Block 50 aircraft in 2010.

Dave McMillan, senior vice president of marketing, regulatory and public affairs, ALLETE, chaired the Minnesota Chamber of Commerce board of directors for 2009-2010.

“We had a community group of about 40 business leaders who went to Washington, attended BRAC hearings and lobbied on behalf of the Duluth Air National Guard Base—it clearly made a difference.”

Pat Mullen, Vice President of Marketing and Public Affairs, Minnesota Power, and Chair, Duluth Area Chamber of Commerce Military Affairs Committee | 16 |

growth

it’s what we value

Leadership Training Leadership development programs inspire participants to take an active role in the health and prosperity of their communities. In 2010, 15 Minnesota Power employees participated in programs such as Blandin Community Leadership, Leadership Duluth, Leadership Superior/Douglas County and Leadership Minnesota. Employees enrolled in these programs also participate in an internal Peer Leadership Group to share their insights and reflect on how their expanded leadership skills can be put to work in the company and its communities. Meanwhile, ALLETE sponsored two executives in the esteemed Minnesota Executive Program (MEP) of the Carlson School of Management at the University of Minnesota. Bethany Owen, president, Superior Water, Light & Power, and Bill Boutwell, general manager-thermal operations, Minnesota Power, graduated from the program in 2010. MEP is designed for top executives who want to enhance and sharpen their skills to manage strategically, leverage technology, gain market share, and effectively engage and lead people.

“The Minnesota Power Leadership Peer Group provides an opportunity to share our experiences in our respective leadership programs as well as discuss challenges that we all face as leaders within the organization.”

Randi Woodward Transmission Compliance Specialist Minnesota Power | 17 |

New Generation Scholarships A new generation of workers is needed to fill anticipated gaps in the region’s labor force. Minnesota Power’s New Generation Scholarship program helps committed college students at specific two- and four-year institutions in Minnesota, Wisconsin and North Dakota complete degrees in math, science and technical fields that match regional workforce needs.

Workforce Development ALLETE and Minnesota Power are influencing workforce education and training initiatives, nationally and here at home. Inez Wildwood, manager of talent acquisition and development, ALLETE, recently flew to Washington, D.C., for a meeting hosted by the President’s Economic Recovery Advisory Board subcommittee on education and training. It explored ways to improve the federal government’s Workforce Investment Act and the American Graduation Initiative. Wildwood was the only participant with hands-on employment training experience at the local, regional and state levels. One example is her involvement with the Northeast Higher Education District (NHED), a consortium “Industry partners came to the table and made recommendations about how to fill gaps in our curricula. All were concerned about the workforce of the future and the skills they would need to support their industries.”

Dr. Sue Collins, President, NHED

of five two-year colleges. NHED recently invited representatives of the energy, mining, pulp and paper, and construction industries to participate in a strategic planning process to ensure curricula and programs match anticipated workforce needs. Through this process, NHED began developing new programs in five areas—industrial technology, industrial lab technology, process automation, corporate assistant and industrial construction. Several participants, including Wildwood, continue to serve on a general program advisory council, advising NHED about customized training and ways to embrace workforce development.

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Internships and Applied Learning

Opportunities to Advance

Fourteen community and technical college students working toward energy-

People perform best when they are encouraged to excel.

related degrees got firsthand experience as summer interns at Minnesota

We develop our most valuable resource, our people,

Power’s generating facilities. The interns were placed through the Energy

through broad experiences, new roles and increasing

Technical Specialist-Wind program at Mesabi Range Community and

responsibilities. The result is a balanced leadership team of

Technical College and the Industrial Technology-Power Generation program

professional women and men who share their knowledge

at Itasca Community College. “They got invaluable hands-on experience

and insight as mentors to encourage the advancement

applying classroom knowledge to practical situations, and they experienced

of others. It begins at the ALLETE board level and

the Minnesota Power culture,” said Lyle Mattson, who supervised two interns

runs throughout the organization. Encouragement and

at Taconite Ridge Wind Energy Center. Minnesota Power also hosted several

opportunity create a corporate culture where people set

students enrolled in the innovative Iron Range Engineering program, allowing

their aspirations high, work hard and ultimately achieve

them to job shadow professional engineers and work on special projects.

greater levels of responsibility and recognition. | 19 |

environmental Bison I Wind Energy Center Bison I Wind Energy Center is moving along at a brisk pace. Sixteen wind towers were assembled in 2010 and another 15 will be installed in 2011. The project will have the capacity to produce 75.9 megawatts of renewable wind power. “Bison I is a milestone for Minnesota Power and a milestone for North Dakota,” said North Dakota Governor John Hoeven at the groundbreaking, in June 2010. The economic benefits of this project stretch across Minnesota Power’s service territory. Components manufactured in Denmark were shipped through the Port of Duluth-Superior and stored at the Clure Public Marine Terminal before being loaded onto specialized trucks for transport to North Dakota, generating local jobs and economic activity. For the second phase of its first wind energy project in North Dakota, Minnesota Power will install 15 new 3.0-megawatt turbines manufactured by Siemens instead of the 17 turbines of 2.3 megawatts originally planned. The new turbine arrangement is expected to generate an additional 10,000 megawatt hours of energy per year, improving efficiency and value.

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stewardship Culture of Conservation

it’s what we value

You don’t often hear of coal companies being applauded for safeguarding and restoring the land, but BNI Coal, an ALLETE affiliate, has received numerous awards for its conservation efforts. That includes a Conservation Achievement Award from the Oliver Soil Conservation District Board for its work on 320 acres of reclaimed wetland and native grassland. Each year, BNI reclaims approximately 200 to 250 acres of mined land by grading, replacing topsoil, seeding, planting trees and reestablishing wetlands. “Most of our employees come from an agricultural background, so conservation is an area of our operation that they take great pride in supporting,” said Wade Boeshans, general manager, BNI. Minnesota Power also is a leader in environmental responsibility and resource management. It is one of the region’s largest and most respected landowners, managing its properties in ways that honor and protect nature’s beauty and precious resources.

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Power of One® Works for Business

Energy Saving on Ice

Every business can make energy-saving choices that lower costs,

UMD Bulldogs hockey players and fans celebrated the opening of

improve productivity and benefit the environment. That is the

the new AMSOIL Arena at the Duluth Entertainment Convention

Power of One®. Minnesota Power works with commercial customers

Center (DECC) in December 2010. The $80 million facility is

to encourage energy conservation. St. Otto’s Care Center in Little

among the country’s first arenas to be Leadership in Energy and

Falls, Minn., recently retrofitted its facility with an advanced energy-

Environmental Design (LEED) certified by the United States Green

efficient heating and cooling system that utilizes cutting-edge

Building Council. Minnesota Power was called in during the design

variable refrigerant flow zoning (VRFZ) technology. Minnesota

phase to help achieve the DECC’s goal of an arena that uses 50%

Power worked with St. Otto’s through the project, providing

less energy than comparable facilities. Its energy consultants provided

technical expertise, design reviews and PowerGrant rebates. The

design assistance, researched products and technology, and secured

VRFZ technology is performing well in cold-climate tests, and

PowerGrant rebates for energy-efficient lighting, equipment and

Minnesota Power is installing a similar system in its Cloquet office as

systems. They will continue to monitor and verify energy performance

a demonstration site.

over the next few years.

Partnerships & Science Guide Environmental Decisions

For the Birds

Do varying water levels of Minnesota Power’s reservoir lakes impact mercury

Preventing whooping cranes and other migratory birds from flying into

levels in fish? That question was studied by researchers at the University of

transmission lines linked to the Bison I Wind Energy Center is a top

Toronto, Canada, through a partnership between the Fond du Lac Band

concern for Minnesota Power. The utility has spent about $500,000 to

of Lake Superior Chippewa, Minnesota Department of Natural Resources,

install thousands of bird flight diverters on the lines, using helicopters. The

Minnesota Pollution Control Agency and Minnesota Power. The issue was

foot-long corkscrews, twisted onto high-voltage electric lines, have been

raised during relicensing of Minnesota Power’s hydroelectric system on

shown to prevent bird death and injury. “We want to be the company

the St. Louis River in the 1990s, and initial scientific studies have shown no

that has done all things it could do to protect wildlife and contribute to

clear relationships between reservoir elevations and mercury levels in fish.

a better environment,” said Dave Schmitz, general manager of renewable

Recently, partners agreed to continue water quality and fish tissue sampling

operations in North Dakota. Minnesota Power also collects osprey chicks

to gain a better understanding of this unique watershed. Minnesota Power

from nests atop its transmission structures and relocates them to waterway

is committed to sound science and working with partners and resource

habitats in Iowa. It has been helping the Iowa Department of Natural

agencies when shaping environmental decisions.

Resources rebuild the state’s osprey population for more than a decade.

“We appreciate Minnesota Power’s stewardship and cooperation with tribal environmental staff in ensuring safe habitats for fish and wildlife.”

Karen Diver Chair, Fond du Lac Band of Lake Superior Chippewa | 23 |

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Renewing the Economy

Energy Education for Teachers

Growing interest in renewable energy has economic development professionals

A group of middle school and high school

in Northeast Minnesota and Northwest Wisconsin hoping to attract companies

teachers got a dramatic look at the enormous

that manufacture wind energy components and other renewable energy-related

size of wind turbine blades during a two-week

products. Minnesota Power is assisting these business recruitment efforts, bringing

educational program called Discovering Science

utility perspective to the Area Partnership for Economic Expansion (APEX), a private-

on the Range in the Field of Energy. Minnesota

sector partnership working to grow the region’s economy. One possible location

Power is a major sponsor of the annual program,

for renewable energy-related manufacturing is the Itasca Eco Industrial Park, being

which educates teachers about renewable energy

developed on the former site of Ainsworth Lumber Company in Grand Rapids, Minn.

generation and emerging energy technology. The

Many regional partners, including APEX, helped the Itasca Economic Development

2010 program included site visits to Minnesota

Corporation (IEDC) shape a vision for redeveloping the property. The $5 million

Power’s Taconite Ridge Wind Energy Center,

project was awarded a $1.75 million Economic Development Administration grant

Thomson Hydroelectric Energy Center and the

and broke ground in October 2010. Near the end of 2010, IEDC finalized a non-

Port of Duluth, where turbine components were

binding letter of intent with a top-ranked liquid biofuel company that is interested in

stored before transport to Minnesota Power’s

anchoring the park—a crucial first step in realizing the team’s vision.

Bison I wind project in North Dakota.

Powerful Upgrades Add Jobs, Improve Efficiency and Benefit Environment Boswell Unit 4 Outages can be a good thing … even in the electric power

SWL&P Water Reservoir Another job-creating

industry. In August 2010, Boswell Energy Center’s Unit 4 began a 10-week outage,

investment in 2010 was construction of a new

investing more than $120 million in efficiency, environmental control and reliability

1,500,000-gallon water reservoir, adjacent to the Superior

equipment, plus maintenance and inspections. The centerpiece was installation of

Water, Light & Power (SWL&P) treatment plant in Superior.

a more efficient steam turbine that increased generation capacity by 60 megawatts,

About 20 contractors, guided by SWL&P employees, were

without requiring additional fuel. In recent years, Minnesota Power has invested

put to work pouring concrete, laying brick and installing

hundreds of millions of dollars upgrading its Boswell, Laskin and Taconite Harbor

heavy-duty pipe. The new reservoir will accommodate

generating facilities to improve efficiency and reduce emissions for a cleaner,

State plans to upgrade an intersection on Highway

healthier environment. This also has generated more than 1,000 construction jobs,

2. It also will use ultraviolet light to help purify water in

stimulating the region’s economy at a time of national recession. “We were the

the treatment process, reducing the use of chlorine and

economic stimulus before the economic stimulus became popular,” said Al Hodnik,

building additional safety and reliability into Northwest

president and CEO, ALLETE.

Wisconsin’s water supply.

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Learn & Earn Eighth graders at Pequot Lakes Middle School and fifth graders at Washington and Churchill Elementary Schools in Cloquet, Minn., recently became the teachers, educating others about energy efficiency. The schools were chosen for Minnesota Power’s Learn & Earn energy education and school-based fundraising program, which helps schools raise money for programs by encouraging the sale and use of energyefficient products. Students learned about energy-saving lights and appliances, then shared that knowledge with younger children in their schools. They also distributed rebate coupons to family and friends. Items sold during these events could save households in Northeast and Central Minnesota nearly 170,000 kWh and help them avoid an estimated $65,000 in energy costs over five years.

20th Annual Energy Design Conference & Expo Leading experts in high performance buildings, sustainable design and development, and current energy and environmental issues helped celebrate the 20th Annual Energy Design Conference & Expo in Duluth. Minnesota Power founded the conference in 1991 and continues to host the event, which drew more than 1,000 registered attendees, presenters and vendors in 2010. In addition to the conference, Minnesota Power regularly offers contractor training on current energy-related topics and provides a variety of online home energy calculators, energy auditing services and rebates to encourage energy-efficient home construction and remodeling.

“I don’t think consumers realize the impact the Energy Design Conference & Expo has had on our region’s housing industry and how home construction has improved because of it. Homes being built today are so much more energy efficient than they were 20 years ago.”

Steve Walker, Walker Construction, Longtime Attendee of Energy Design Conference & Expo

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Bentleyville The towering, 120-foot Christmas tree at Duluth’s Bentleyville “Tour of Lights” was a shining example of energy-efficient lighting. The tree was illuminated with thousands of twinkling light emitting diode, or LED, holiday lights. So were the archways and trees near the skating rink. Minnesota Power, a sponsor of the annual lighting display, has been promoting the use of LED holiday lights for several years and has converted the lighting on its own downtown Duluth tree to the energy-saving LEDs. “These are great demonstrations that energy efficiency doesn’t mean sacrificing beauty,” said Tina Koecher, energy efficiency manager, Minnesota Power. Perhaps Bentleyville will inspire others to use LED holiday lights at home. | 27 |

Thank you to all Minnesota Power employees, customers, partners and stakeholders for making our communities brighter. The work you do reflects the values we all hold dear.

For more information, please contact: Peggy Hanson, Community Relations and Minnesota Power Foundation Director 218.355.3380 | mhanson@mnpower.com Visit our websites: www.mnpower.com | www.mnpowerfoundation.org

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