Community Investment Report 2013 by Minnesota Power

... inspiring exploring growing learning Courtesy of Science Museum of Minnesota

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2013-2014 Community Investment Report

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Dear Friends, ALLETE companies have successfully powered the region’s communities and businesses with reliable, affordable electricity and tireless human energy for more than a century. That tradition continues today with a new generation of leaders and committed employees whose fresh perspectives and creativity have helped shape a balanced resource strategy, called EnergyForward, that strengthens our corporation, benefits customers and respects resources. A balanced approach also guides the philanthropic work of the Minnesota Power Foundation. The Foundation serves on behalf of all ALLETE companies—Minnesota Power, BNI Coal, ALLETE Clean Energy, ALLETE Renewable Resources and Superior Water, Light & Power. Its grants and scholarships advance individuals, nonprofits and educational programs in Minnesota, Wisconsin and North Dakota that share its passion for education, community enrichment and human services. You can read about some of the year’s major gifts in this Minnesota Power Foundation 2013-2014 Community Investment Report. It also celebrates the invaluable contributions of people across our ALLETE family who share their professional skills and personal energy for inspiring, exploring, growing, learning, sharing, and doing. Please take a few moments to read this report. I hope you will share my pride in the outstanding people who wake up every day, looking for sensible, sustainable ways to make our region a better place to live and work. Sincerely,

Al Hodnik Chairman, President and CEO, ALLETE

Minnesota Power Foundation 2013 Contributions: $768,852 Education, community enrichment and human services are top priorities for the Minnesota Power Foundation. Each year, it distributes hundreds of thousands of dollars to

Education 29%

Community Enrichment 25%

qualified organizations in Minnesota, Wisconsin and North Dakota that share these interests. The Foundationâ&#x20AC;&#x2122;s grants, scholarships and educational programs benefit customers and communities served by Minnesota Power, BNI Coal, ALLETE Clean Energy, ALLETE Renewable Resources and Superior Water, Light & Power. 2

United Way 35%

Health & Community Services 11%

Living United Strengthens Communities The United Way is vital to communities across the Minnesota Power Foundation’s service territory. In 2013, more than 715 employees and retirees across ALLETE, Minnesota Power, BNI Coal, ALLETE Clean Energy, ALLETE Renewable Resources and Superior Water, Light & Power pledged $272,127 to their local campaigns. The Minnesota Power Foundation contributed an additional $270,00 toward eight United Way locations in Minnesota, Wisconsin and North Dakota. Employees volunteer as well as pledge. In June 2013, a group of employees gardened, painted, cleaned and performed other jobs at Grace House in Grand Rapids. This volunteer work at the city’s shelter for the homeless was part of the United Way of 1000 Lakes’ Day of Action. Dozens of employee volunteers also participated in the United Way of Greater Duluth’s Day of Caring, pulling weeds, packing bags and scrubbing shelves at the Second Harvest Northern Lakes Food Bank.

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Skelton Among “40 Under 40” to Watch Young community leaders get noticed. Josh Skelton, thermal operations manager at Minnesota Power’s Boswell Energy Center Unit 4, was named one of Itasca County’s “40 Under 40” young professionals in 2013 by the Grand Rapids Herald-Review. Skelton is an active community volunteer, who serves on the boards of the Grand Rapids Area Chamber of Commerce and the Grand Itasca Clinic and Hospital. Minnesota Power was inducted into the Grand Rapids Area Chamber’s “Pillars Society” in 2013, in part due to Skelton’s leadership. He also is an active and engaged parent, helping to ensure a new generation of community-minded leaders.

Patriot Award Honors Support for the Military The heartwarming image of a soldier’s return home to her infant daughter touched readers of Minnesota Power’s 2012-2013 Community Investment Report. In 2013, that soldier, Jennifer Peterson, nominated her supervisor, Purchasing Manager Diana McFadden, to receive a special Patriot Award for outstanding support before, during and after that deployment. A representative from Employer Support of the Guard and Reserve (ESGR), a U.S. Department of Defense committee, presented the award to McFadden and recognized Minnesota Power’s friendly policies that encourage employees who choose military service and honor their personal and professional sacrifices. Peterson, a contract administrator in Minnesota Power’s Purchasing Department, received an award of her own in December 2013. She was named Company Grade Officer of the Year for the 148th Fighter Wing, Minnesota Air National Guard.

“We appreciate it, and it is a big deal, when an employer sacrifices and provides for a national defense. That is what Minnesota Power has done.” Wilson Spence, ESGR, U.S. Department of Defense

The Fred Five Races for a Cure It is heartbreaking to lose a child, but Wade and Stacy Boeshans have turned the loss of their infant son, Fred, into a race to cure the disease that took him. The Fred Five 5k Walk/Run in Washburn, North Dakota, honors Fred Boeshans, who died in 2003 from an infant liver disease called neonatal hemochromatosis (NH). The family-friendly event also includes children’s races, and all money raised goes to NH research. Wade Boeshans is president and general manager of BNI Coal, an ALLETE company, in nearby Bismarck. He and his wife hope research can prevent other families from the heartache of this terrible disease.

A Toast to Toastmasters! Self motivation is an important quality in all aspects of life. Nick Nelson, a utility compliance specialist at Superior Water, Light & Power, earned the title “Toastmaster of the Year” in 2013. He is among many ALLETE company employees who are strengthening their communication and leadership skills through Toastmasters International. The ALLETE Power Cords Toastmasters club meets weekly to help employees become comfortable with public speaking and leadership roles. ALLETE Vice President and Treasurer Don Stellmaker serves as the club’s executive sponsor. Participants give talks, make presentations and conduct meetings in a safe environment with feedback from their peers.

Don Shippar Community Leadership Award A Special Olympics team in Grand Rapids, Minn., received a check for $2,500, thanks to an outstanding Minnesota Power employee and community volunteer. Crystal Burggraf, an administrative specialist at Boswell Energy Center, was recognized by the Minnesota Power Foundation with the 2013 Don Shippar Community Leadership Award, an honor that comes with a check for the winner’s designated charity. Colleagues nominated Burggraf in part for her role in founding and organizing the annual Bisch Bash, a fundraiser for the Itasca Area Cancer Crisis Fund. It began in 2010 as a benefit for a friend who had terminal cancer. Burggraf also coaches basketball and poly hockey for Special Olympics. Other award finalists were Dan Leslie and Brad Perrett, both of whom model ALLETE’s value of community engagement, sharing their skills, knowledge and resources to make a positive difference.

Courtesy of Science Museum of Minnesota

“Dear Minnesota Power, Thank you for coming to our school and teaching us about electricity…also thank you for picking me to go to the front of the gym and making my hair go static. Now, all of the kids in 4th grade call me Pink Alien, but don’t worry. I’m Okay with it!” Maren C., 4th Grade Student

“Electricity” Tour Energizes Young Minds Hair-raising and shocking demonstrations of science captivated students during the Science Museum of Minnesota’s “Electricity” School Outreach Tour. The Minnesota Power Foundation sponsored the tour, which visited dozens of Northeast Minnesota schools in 2013. Students learned how magnets help create electricity, created a human circuit to demonstrate electric charges, and thrilled at how static electricity makes hair stand on end. The fun, educational program supports Minnesota state standards for science education.

Science Fair Taps Creative Energy Students put their creative energy to work at the Northeastern Minnesota and American Indian Regional Science and Engineering Fair in Duluth, exhibiting science projects and presenting research papers on a variety of topics. Minnesota Power is a longtime sponsor, and employees volunteer as judges and help at the event. The competition is open to students in grades 7-12. In 2013, 250 projects were judged in areas such as chemistry, computer science, energy, environmental management, mathematics, electrical engineering and mechanical engineering.

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Teens Explore Career Paths What do you want to be when you grow up? High school students hear that question often, but they don’t always have the answer. KIDS PLUS Pathway to Careers, a program of the Northland Foundation, invites sophomores and juniors to meet regional employers and learn about potential careers in engineering, business and finance, health care, manufacturing and trades, and other areas. The Minnesota Power Foundation is a premier sponsor of the event, which opens students’ eyes to career opportunities in the region and how their interests and skills might fit in the work world.

Robots Perform at FIRST Robots are no longer futuristic. They are here to stay. The FIRST Lake Superior and Northern Lights Regionals robotics competition, held in Duluth, challenges teams of high school students to build robots that perform specific tasks, such as launching Frisbees and climbing steel pipe pyramids. Minnesota Power sponsors this “varsity sport for the mind,” and a growing number of high schools in Northeast Minnesota participate. One newcomer, the Two Harbors Rock Solid Robotics team, earned a Rookie All Star Award in 2013 for outstanding achievement by a first-year team.

Mentoring Day Highlights Abilities Abilities outshine disabilities when it comes to the workplace. Mentoring Day, an annual event sponsored by the Northern Lights Special Education Cooperative, connects area business people with hundreds of high school students who live with disabilities. Business volunteers, such as Jon Sullivan, a customer information systems specialist with Minnesota Power, conducted mock interviews at the 2013 event. They asked students about their goals, accomplishments and challenges and shared information about their workplaces. Organizers hope this connection will dispel employers’ fears about hiring people with disabilities and give students with special needs confidence in exploring careers.

Sebeka Snowshoes Winter does not slow down elementary students in Sebeka Public School. The children are snowshoeing during recess, thanks in part to a grant from the Minnesota Power Foundation. Organizers of the community wellness project secured funding and educational discounts to purchase “Made in the USA” snowshoes for students to use. Teachers hope to integrate snowshoeing into the curricula and are pleased to see students out exploring the school grounds, while enjoying safe, low-impact winter exercise. ALLETE is a corporate leader in promoting health and wellness for its employees, their families and the broader community.

A Bird’s-Eye View Falcons are fascinating. FalconCams, mounted on nesting boxes at Boswell Energy Center, in Cohasset, and Hibbard Renewable Energy Center, in Duluth, provide “bird’s eye” views of life in the nest. Researchers from the Raptor Resource Center in Decorah, Iowa, work with Minnesota Power to identify and band each chick that hatches. Minnesota Power also partners with the Iowa Department of Natural Resources to collect and relocate osprey chicks from nests built in transmission lines. The program has helped reestablish Iowa’s osprey population, which declined decades ago due to pesticides.

“Minnesota Power/ALLETE is made up of employees who have families, and their kids like to know their parents work for (a company) that exhibits environmental consciousness. The birds touch a lot of people’s lives.” Pat Schlarbaum, Wildlife Diversity Technician, Iowa DNR

Minnesota Power Moves EnergyForward A cleaner energy future lies ahead, thanks to Minnesota Power’s EnergyForward resource strategy. The plan will meet the energy needs of customers with a balanced energy mix that is reliable, affordable and environmentally responsible—one-third renewable energy, one-third coal and one-third natural gas.

Here are the key components: » Investments in Renewable Energy Bison Wind Energy Center, near New Salem, North Dakota, continues to grow. A fourth phase of construction is underway that will add 64 turbines to the 101 already on site. Minnesota Power officials joined landowners and community leaders in May 2013 to celebrate completion of Bison Phases 2 and 3. Bison is a unique, North American “wind-water” energy source ... all of it carbon free. The expanding Bison Wind Energy Center (and the creativity it represents) was voted best renewable energy project of the year at the 2013 POWER-GEN International Conference and Exhibition awards banquet. Meanwhile, clean, renewable hydropower has been part of Minnesota Power’s energy mix for more than a century. Work continues to repair the Thomson Hydro Station and other infrastructure on the lower St. Louis River that was damaged by flooding in June 2012. Minnesota Power is investing $35 million to protect the system against future flooding and improve its efficiency. Approximately 100 to 150 local union trade workers across all spectrums have been working feverishly to bring Thomson Hydro Station, located in the iconic Jay Cooke State Park, back to clean energy production by spring 2014.

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» Construction of the Great Northern Transmission Line A power purchase agreement with Manitoba Hydro for 250 megawatts of hydropower beginning in 2020 will boost Minnesota Power’s renewable energy mix. The Great Northern Transmission Line will deliver this clean, carbon-free energy from Canada to customers in Northeast Minnesota. The planned project could generate more than $800 million in local economic impact and create 250 well-paying construction jobs.

» Emission Reductions at Existing Plants Minnesota Power broke ground in October 2013 on a new $350-million clean air project at Boswell Energy Center in Cohasset. The Boswell Unit 4 upgrade will reduce mercury emissions on the utility’s largest generator by 90 percent. Once it is completed, Minnesota Power will have invested $700 million in environmental improvements at its northern Minnesota plants since 2005, significantly reducing emissions of sulfur, nitrous oxide and particulates. Minnesota Pollution Control Commissioner John Linc Stine praised Minnesota Power and its fellow utilities for the “great job they’ve done” in dealing with mercury emissions.

» Addition of Natural Gas A transformation is taking place at Laskin Energy Center in Hoyt Lakes. The 110-megawatt generating plant is being converted from coal to a natural gas peaking facility. The natural gas-fueled plant will be a first for Minnesota Power and will be completed by 2015. Minnesota Power also plans to retire one of three coal-fired units at Taconite Harbor Energy Center.

Interns Get “Full Minnesota Power Experience” Internships help college students grow in experience and knowledge of potential careers. Each year, dozens of summer interns work in various capacities at ALLETE, Minnesota Power, BNI Coal, ALLETE Clean Energy, ALLETE Renewable Resources and Superior Water, Light & Power. In 2013, many took breaks from their regular tasks to tour company facilities. Groups visited Laskin Energy Center and heard about its planned conversion to natural gas, toured Taconite Ridge Wind Energy Center, and learned about hydropower at the Fond du Lac Hydro Station. This “Full Minnesota Power Experience” educates young talent about the company and careers in electric utility and related energy industries.

Learn About It Day Seeing something firsthand makes a strong impression. About 40 employees of ALLETE companies participated in the 2013 Learn About It Day, an event developed by the ALLETE Leadership Peer Group to educate workers about the corporation’s businesses and activities. The group traveled to Grand Rapids and toured Minnesota Power’s Rapids Energy Center (a biomass facility) and the UPM Blandin paper mill. It helped participants understand the role of biomass in the company’s renewable energy strategy and the unique relationship Minnesota Power has with the large power customers it serves.

Tall Ships Carry Economic Rewards Grand sailing vessels wowed crowds at Tall Ships® Duluth 2013. Minnesota Power’s parent company, ALLETE, was a sponsor of the festival, which brought nine historical vessels and many thousands of visitors to the Duluth waterfront. High profile events, such as Tall Ships® Duluth 2013 and Grandma’s Marathon, depend upon corporate sponsorships for their success. Growing tourism brings hundreds of millions of dollars to Northeast Minnesota each year, creating jobs, strengthening businesses and bolstering the economy.

Festivals Grow Community Spirit Folks in Little Falls, Minn., celebrate their city’s history and heritage each summer with the Little Falls Dam Festival. The family-friendly event features a parade, carnival and other activities, including tours of Minnesota Power’s Little Falls Hydroelectric Station. The dam and hydro station on the Mississippi River generate clean, renewable energy for Minnesota Power customers. People waiting for tours in 2013 learned about energy generation using a bike that energized light bulbs as they pedaled. Participating in festivals and parades helps Minnesota Power stay connected with communities it serves in Minnesota, Wisconsin and North Dakota.

Jobs for Minnesotans A recent statewide survey shows growing support for mining in Minnesota—including copper-nickel mining. The survey was conducted by Jobs for Minnesotans, an organization formed by the Minnesota Chamber of Commerce and Minnesota Building and Construction Trades Council to educate and inform people about the job creation potential of strategic metals mining. As a member of the coalition, Minnesota Power believes copper-nickel mining and clean energy are compatible. Copper and nickel are used in computer components, smart phones, LED light bulbs, wind turbines, solar panels and other essential products. Responsible mining of them could strengthen and diversify Northeast Minnesota communities and create thousands of long-lasting jobs.

Powerful Land Swap Restores Forest Planting 81,000 seedlings is no easy task, but students from Grand Rapids High School eagerly joined representatives of Minnesota Power and UPM Blandin to kick off the effort. The reforestation project followed a groundbreaking land exchange, which allowed Minnesota Power to reroute a transmission line for Essar Steel Minnesota’s proposed taconite plant near Nashwauk and bypass an easement that cut through 15,000 acres of UPM Blandin forestland. The seedlings will help fill in the vacated easement. UPM Blandin plans to manage the large, contiguous tract as a working forest with public access for hunting, fishing, hiking and snowmobiling.

Courtesy of PolyMet Mining

Wood Has Growth Potential Wood is an available, renewable resource with potential for job growth in Northeast Minnesota and Northwest Wisconsin. A study commissioned by Minnesota Power and its regional economic development partners analyzed the regionâ&#x20AC;&#x2122;s wood fiber supply and found an abundance of roundwood, biomass and other forest resources for which there is no current demand. APEX, the regionâ&#x20AC;&#x2122;s private-sector led business development engine, is promoting this opportunity to wood-related prospects that would complement current forest and paper industries.

LNG Plant Would Support Key Industries The Mesabi Miner, a frequent visitor to the Port of Duluth-Superior, is slated to become the first Great Lakes freighter to run on liquefied natural gas (LNG) as Interlake Steamship Company begins converting its fleet to the cleaner fuel alternative. LNG has tremendous environmental benefits as a form of fuel and is cheaper than the diesel currently used by marine, rail and heavy equipment industries. A strategy group facilitated by Minnesota Power Director of Regional Development Nancy Aronson Norr is exploring the potential for attracting a large-scale natural gas liquefaction plant to support this conversion in the regionâ&#x20AC;&#x2122;s key industries.

Courtesy of Robert Welton

24 Courtesy of Duluth Seaway Port Authority

River Quest Sixth-grade adventurers from 16 area schools boarded the Vista Star tour boat in spring 2013 to explore the St. Louis River estuary. River Quest takes students through educational stations onboard the vessel and at the Duluth Entertainment Convention Center. The stations cover topics such as Great Lakes cargo, storm and sanitary sewers, pollution and the river watershed, and much more. Minnesota Power is a major donor and supports River Quest’s goal to enhance student awareness and understanding of the St. Louis River ecosystem and interrelated commercial, industrial and recreational activities.

Aquarium Overflows with Students Students enrolled in classes, camps and other environmental education programs at Great Lakes Aquarium soon will have larger, more modern classrooms. The Minnesota Power Foundation has committed up to $125,000 to help the aquarium double its educational space. The project will convert a former catering kitchen into three flexible classrooms, a teacher resource center and expanded interactive videoconferencing lab. It will address the growing demand for year-round educational programs and teacher workshops that advance stewardship of the Great Lakes and water resources. Minnesota Power’s Tina Koecher, manager-billing and energy efficiency, serves on the aquarium’s board of directors. She oversees the Power of One® Business conservation team, which is helping aquarium staff identify and implement energy-saving opportunities. One example is the new LED lighting on the aquarium’s prominent water wall. It saves energy and lowers costs while demonstrating the performance and versatility of LED technology.

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Celebrating Science on the Range More than 1,100 seventh-grade students, teachers and chaperones attended sessions on electricity, wind power, rocks and minerals, and other topics during the 2013 Iron Range Science and Engineering Festival at Minnesota Discovery Center. Minnesota Power was a major sponsor of the three-day event, designed to inspire the next generation of scientists and engineers. Instructors from Itasca Community College (ICC) led the wind-power session, in which students built an actual wind turbine. ICC is a partner in Iron Range Engineering, a project-based learning program that connects third- and fourth-year college students with local industry partners, including Minnesota Power.

2013 Scholarship Awards Exceed $100,000 In 2013, the Minnesota Power Foundation awarded $106,000 in scholarship funding to 48 students across the region. This included 20 Minnesota Power Community Involvement Scholarships of $2,500 each for graduating high school seniors, 26 Minnesota Power New Generation Scholarships of $1000-$2,500 each for existing college students in fields that match the region’s workforce needs, and special scholarships unique to institutions and programs.

UMD Honors 25 Years of Scholarships and Jack F. Rowe Engineering Chair Minnesota Power and the Minnesota Power Foundation were recognized in 2013 for 25 years of supporting scholarships at the University of Minnesota Duluth (UMD) Swenson College of Science and Engineering. The program featured a new video about the Jack F. Rowe Chair of Engineering, an endowed chair established in 1989 through a $750,000 donation from Minnesota Power. The Rowe endowment has grown to more than $4.5 million and is used to recruit and retain outstanding faculty members, provide research grants and purchase equipment and materials needed for engineering education and research. It honors former Minnesota Power CEO Jack F. Rowe, an “engineer’s engineer,” who believed in sound science and sound economics. In recognition of the 25-year celebration, the Foundation presented three $2,500 scholarships, stressing the importance of a workforce with strong engineering skills.

"The Boise layoffs and losing a $15 million to $20 million payroll create a hole in our community of 6,400 people, but I’m hopeful that things will turn around. The Minnesota Power Foundation grants come at a good time." Mayor Bob Anderson, International Falls

Soup Kitchen Expansion Feeds Those in Need A remodeled kitchen and expanded dining area are helping The Damiano Soup Kitchen meet an unprecedented demand for emergency meals in Duluth. Staff and volunteers serve more than 125,000 free meals per year, helping thousands of people who would otherwise go hungry. The Minnesota Power Foundation donated $100,000 to the project, which doubled the size of the kitchen, updated equipment and added seating capacity. The Damiano Center provides hot meals, free clothing and other vital human services to those in need.

Buddy Backpacks Feed Hungry Students Microwavable soup and pasta, granola and fruit cups are among items sent home each Friday with area students who might otherwise go hungry over the weekend. Employees from Minnesota Power’s Northern Division helped pack “Buddy Backpacks” as part of the United Way of Northeastern Minnesota (UWNEMN) pledge drive presentation. UWNEMN distributes more than 700 bags of food each week through schools across the Iron Range and Koochiching County. It purchases food from Second Harvest Northern Lakes Food Bank. ALLETE company employees and the Minnesota Power Foundation help replenish the food bank and fill local food shelves each March during Minnesota FoodShare month.

Grants Help “The Falls” Through Uncertain Times A food shelf and a community center in International Falls each received $5,000 from the Minnesota Power Foundation in 2013. The Falls Hunger Coalition and the Backus Community Center were selected to receive the funds by employees who work and service accounts in the area. International Falls is adjusting to the loss of 265 jobs with the shutdown of two paper machines at the Boise paper mill. Boise also is selling the mill, adding more uncertainty to the community.

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Fine Arts Support Arts and culture add depth and character to communities. Minnesota Power and the Minnesota Power Foundation are proud to support the Duluth Superior Symphony Orchestra, Minnesota Ballet, Northern Lights Music Festival and other powerful performances across the region. Preserving the region’s cultural history is equally important. A Minnesota Power Foundation grant helped Itasca County Historical Society relocate in 2013, establishing a safe home for the museum’s wooly mammoth tusk, logging and American Indian artifacts, Judy Garland collection and the iconic painting called “Grace.”

Dash of Color Brightens Amberwing Layers of pink, blue, green, yellow and orange powdered paint brightened the shirts of finishers in the first Color Dash 5K Run/Walk in Superior, Wisconsin. The unique event was a benefit for Amberwing, a center that provides mental health and chemical dependency treatment for children, teens and young adults. Two teams of Minnesota Power and ALLETE employees participated. They ran and walked a course lined with color stations where they were showered with paint powder. Fundraising events like the Color Dash, Dragon Boat Festival and Relay for Life promote exercise and team building, while supporting important community causes.

New Salem Moooved by Donation Salem Sue, the “world’s largest Holstein cow,” can be seen for miles by travelers on I-94 near New Salem, North Dakota. The well-worn road leading up to this popular bovine attraction recently got a much-needed layer of gravel. Minnesota Power donated 26 loads of gravel to resurface the road. The New Salem Lions Club erected the fiberglass cow in 1974 to recognize the local dairy industry and maintains the site. Members expressed appreciation at the Club’s Annual Holiday Party, noting they are impressed and happy to have Minnesota Power and its Bison Wind Energy Center in the community.

Seed Money to Grow Future Farmers Agriculture is a major industry in North Dakota, a state known for its production of wheat, flax, canola, sunflowers and other important commodities. The Minnesota Power Foundation recognized this during the Bison Wind Energy Center dedication in 2013 with donations to the Morton County Fair Board for a vocational agriculture job-training program and to the local 4-H Club. Minnesota Power has a long tradition of supporting activities and programs important to the communities in which it is located and does business.

Businesses Tap Energy Savings Thirsty tourists and locals alike are drawn to Canal Park Brewing Company’s striking brick building with its gleaming steel silo and refreshing craft beer. The facility also is brimming with energy-efficient features, from LED lighting to an innovative brewing system. Minnesota Power’s Power of One® Business energy conservation team engages business owners and property managers to identify energy-saving opportunities and bring projects to completion. The Miller Hill Mall is another example. Since 2005, mall officials and tenant businesses have tapped Minnesota Power’s expertise and resources to complete dozens of projects, including improvements in lighting, air conditioning, heating and energy controls.

Power of One® Takes Energy Efficiency On the Road Senior citizens, low-income residents, college students and others who seek a sustainable future can benefit from energy-saving choices. Minnesota Power’s Power of One® conservation team provides energy-saving tips and products to help customers save energy and lower utility costs in their homes. Each year, Minnesota Power co-sponsors the Energy Awareness Expo at the Duluth Salvation Army, hosts the Energy Design Conference & Expo for home construction professionals, and staffs exhibit booths at popular events such as the Arrowhead Home and Builder Show, Lake Superior Harvest Festival and Iron Range Earth Fest. The Power of One® team also encourages energy efficiency in schools and on college campuses with activities like A Brighter UMD Energy Event, which offers ENERGY STAR® lighting products at special prices, provides energy education materials and raises money for student bus passes.

Bong Center Honors Minnesota Power Foundation as “Boilermaker” Heavy snow and frigid temperatures do not bother folks at the Richard I. Bong Veterans Historical Center in Superior, Wisconsin. A new energy-efficient furnace and boiler system prepared the facility for winter’s blast. The Minnesota Power Foundation helped finance the project with a $15,000 challenge grant and was honored at a ceremonial “Light the Boiler” event in December 2013. The center’s original boiler system broke down in June. Superior Water, Light & Power provides electricity to the facility and had its contractor, Energy Insight, Inc., conduct an energy audit. It recommended replacing the system and upgrading to more energy-efficient equipment.

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Swimming, Running and Riding Hundreds of triathletes and spectators converged on Minnesota Power’s Island Lake picnic area and beach for the 2013 Brewhouse Triathlon. Organizers chose the new venue thanks to Minnesota Power’s recent investment in the property, which provides excellent space for staging the race and public viewing. Meanwhile, the Boulder Lake Management Area hosted a unique event in 2013—an American Competitive Trail Horse Association obstacle challenge. Island Lake and Boulder Lake are reservoirs that feed Minnesota Power’s hydroelectric system. They are managed to produce clean, renewable energy, while providing public access for diverse uses.

Adopt-A-Beach™ Teams Clean Up A sailboat wrap and refrigerator door were among unusual items collected during the 2013 September Adopt-A-Beach™ event by Minnesota Power and ALLETE employees and their families. The 40 volunteers cleaned a 1.5-mile stretch of beach on Duluth’s Park Point. Along the way, they logged beach observations and tested water for E. coli and coliform bacteria. Minnesota Power also sponsors the Lake Superior Beach Monitoring Program, which measures bacteria levels along the North Shore to ensure a safe, healthy aquatic environment for swimming and other recreation.

“Over the Edge” for a Good Cause It takes nerves of steel to rappel a nine-story building, but three Minnesota Power employees and dozens of other daredevils managed to do it, dropping in on Duluth’s annual Sidewalk Days Festival in July 2013. The high visibility event, called “Over the Edge,” was a fundraiser for the Greater Downtown Council, a private nonprofit dedicated to growing a strong, healthy and exciting Downtown Duluth. Kim Lund, Aaron Nelson and Wing Chan secured the coveted spots through a company drawing. Minnesota Power is a major sponsor of the Greater Downtown Council.

Safety Is Always on the Line Safety is a core value within the ALLETE family of energy businesses. It takes the commitment and focus of every person on the job—both union and management. For example, Minnesota Power’s transmission and distribution workers have formed a joint Fall Protection Committee to improve safety in the field. It has successfully focused on two initiatives: changing out body belts in bucket trucks to full body harnesses and training crews to use wood pole fall restriction devices. All ALLETE companies share Minnesota Power’s “zero injury” commitment. In 2013, Superior Water, Light & Power celebrated more than three years without a lost time injury. Safety does not end at the workplace. Employees are encouraged to take what they learn at work and share it with their loved ones.

Firefighters Equipped to Respond The Lutsen Fire Department is better prepared for emergencies thanks to a grant from the Minnesota Power Foundation. The funds are helping the department purchase and equip a fire support trailer, which will be used for emergency events throughout Cook County. Minnesota Power’s Taconite Harbor Energy Center is located in the department’s service territory, and many employees serve as volunteer firefighters and first responders in this rural area. Joe Fredrickson, a long-time Minnesota Power employee, presented the check to Lutsen Fire Department officials. He was injured in an unfortunate coal dust explosion. First responders, like the Lutsen Fire Department, support Minnesota Power’s people and facilities throughout the region. We appreciate their partnership and expertise as we jointly focus on security, comfort and quality of life.

Long-time Foundation Director Retiring Peggy Hanson, founding director of the Minnesota Power Foundation and longtime Minnesota Power community relations administrator, will retire early in 2014. Peggy joined the company nearly 40 years ago and has led Minnesota Power’s philanthropic and community service activities for 24 years. “No one builds success alone,” Hanson said in announcing her retirement. “While the company I joined so many years ago has changed and grown in ways I could never have imagined, what has not changed is the quality and dedication of our people. I’m exceptionally proud of our mission and what we accomplish together to enrich so many lives.”

NEW CONTACT INFORMATION Aimee Curtis Community Relations and Foundation Administrator 218.355.3169 acurtis@mnpower.com

For more information, please contact: Aimee Curtis, Community Relations and Foundation Administrator 218.355.3169 | acurtis@mnpower.com Visit our websites: www.allete.com | www.mnpowerfoundation.org Sterling Premium paper manufactured by NewPage Corporation was used for the 2013-2014 Minnesota Power Community Investment Report. Minnesota Power is proud to use the high quality product of a valued customer in this report.

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