Energizer, Spring 2013

SPRING 2013

Energizer News MP maps out a path for a more diverse and renewable energy supply Minnesota Power is charting a course to a cleaner energy future and relying on a road map we call EnergyForward.

“Our plan keeps pace with a dynamic energy landscape in a sensible and sustainable manner,’’ said Al Hodnik, ALLETE chairman, president and CEO. “EnergyForward builds upon renewable energy investments already completed. It further diversifies our generation mix, balancing coal, renewables and natural gas and builds upon significant emission reductions at our existing power plants, all while preserving the reliable and affordable power Minnesota Power’s customers expect.”

Fuels diversity EnergyForward calls for an energy mix of one-third renewable, one-third coal and one-third natural gas and other in the 2020s. Minnesota Power will convert Laskin Energy Center from coal to cleaner-burning natural gas and retire one of three coal units at Taconite Harbor Energy Center. Both changes are expected to be completed in 2015. Long-range plans include adding more natural gas after 2020. continued on Page 3 Published by MP Corporate Communications, Kelley Eldien, Editor | 30 W. Superior Street, Duluth, MN 55802 | mnpower.com

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Here are some highlights of how we’ll get there:

SmartPak

FREE water- and energy-saving tools SmartPak includes: hot water gauge, shower timer, showerhead and faucet aerators

Visit www.mnpower.com/smartpak to order your FREE SmartPak and to learn more about conserving water.

One per household served by Minnesota Power. Must have an electric water heater. For gas water heater, contact your gas utility.

$50 Bonus

Receive a $50 bonus in addition to a standard*

Air Source Heat Pump (ASHP) Rebate.

April 1–August 31, 2013 Find out more by reading our insert in your bill, visiting our website or talking with a participating contractor.

800-677-8423 (option 2) www.mnpower.com/ASHPRebates Give this coupon to a participating contractor to receive a $50 bonus with your rebate. *Standard rebates range from $50–$500 based on type and application.

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Mercury control wins praise from regulator Minnesota Power has been recognized for the great job it has done in reducing mercury emissions.

In February, the Minnesota Pollution Control Agency praised MP and other utilities in the state for their role in cutting mercury emissions from coal-fired power plants to about 870 pounds a year today from about 1,850 pounds a year in the mid-1990s. And they’re headed to less than 200 pounds by 2016, said John Stine, MPCA commissioner.

Stine said that one measure of the utilities’ success is that the U.S. Environmental Protection Agency now looks to Minnesota as a model for how other states can reduce their own emissions of mercury from power utilities.

Tracking down stray voltage Minnesota Power works with farmers to help detect and reduce stray voltage in confined animal operations.

This low-level voltage can be found on metal objects that farm animals touch, such as water pipes and stanchions.

The voltage level is usually so slight that humans cannot feel it, but animals may. It can be caused by many factors, including faulty wiring or improper grounding.

For more information or to schedule a free stray voltage review, contact Kevin McLean at 320-635-5078, ext. 5078, or 1-800-228-4966, ext. 5031.

Energy

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Emission reductions Minnesota Power has invested more than $350 million in an array of technology which has cut emissions across the system by about 70 percent since 2005.

Beginning this year, we’ll install another $350 million in improvements at Boswell Energy Center to further reduce emissions of sulfur dioxide, particulates and mercury by 2016.

Renewable energy Now that three phases of the Bison Wind Energy Center in North Dakota are completed, Minnesota Power is delivering more than 400 megawatts of wind energy to customers. And with the recent extension of the federal production tax credit on wind generation, we’re analyzing adding more wind to our energy mix.

We’re also making investments to improve efficiencies at our hydro stations, including Thomson and Fond du Lac, and are planning for the Great Northern Transmission Line, which will deliver 250 megawatts of hydroelectric power from northern Manitoba by 2020.

At the same time, Minnesota Power will continue its Power of One conservation program which has exceeded state conservation goals by providing customers with tools to lower their energy usage.

Minnesota Power’s energy resource decisions are subject to review and approval by the Minnesota Public Utilities Commission. Minnesota Power filed its Integrated Resource Plan, an important step in moving toward the EnergyForward vision, with the MPUC on March 1.

Learn more View an interview with ALLETE CEO Al Hodnik about EnergyForward at mnpower.com.

Generations.

Minnesota

mm 2–2013 Co Power’s 201

unity Investm

ent Report

‘Generations’ report showcases MP’s community role Generations have known Minnesota Power as a strong community leader and corporate citizen.

The people of Minnesota Power have a tradition of sharing skills, knowledge and experience to benefit customers and communities. The investments they make in the region are personal and profound, going far behind financial contributions.

We hope you’ll take a few moments to read “Generations–Minnesota Power’s 2012-2013 Community Investment Report” at mnpower.com/ community to learn more about how our employees and the Minnesota Power Foundation work to advance the region’s comfort, security and quality of life.

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Tune in to Falcon Cam

Hands-on science for area classrooms The Minnesota Power Foundation is sponsoring two educational programs for area schoolchildren this spring.

The Minnesota Science Museum Electricity Assembly and the Science and Engineering Festival are designed for grades 3-7.

These three peregrine falcon chicks were born last year at the Hibbard Renewable Energy Center in Duluth. The trio was photographed before being banded as part of a partnership with the Raptor Resource Project in Decorah, Iowa.

Nesting boxes and cameras on stacks at Hibbard and at the Boswell Energy Center near Cohasset provide a closer look at the life of peregrine falcons, the fastest raptors on the planet. Banders from the Raptor Resource Project visit almost every spring to band the birds for a database that tracks the birds’ activities.

In a typical year, migrating peregrines return to the nesting boxes in March, the eggs are laid in mid-April and the chicks hatch in late May. You can follow along with our Falcon Cam at mnpower.com.

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The Science Museum’s Electricity Assembly tour features student volunteers, large scaled props and interactive demonstrations. This program brings a unique brand of science education to 36 area elementary schools each year.

The Science and Engineering Festival, for 1,200 seventh-grade students from across the Iron Range, will take place at the Discovery Center in Chisholm in April. The goal is to reinvigorate interest in science, technology, engineering and math.

Learn more at mnpower.com/company/ schoolprograms.

Mark underground lines

The right tree in the right place

If you’re landscaping or gardening on your property or clearing land at a construction site, call Gopher State One Call, 800-252-1166, at least 48 hours before you excavate.

The Right Tree brochure provides tips for selecting and siting trees to ensure the safety and reliability of electric service. Read the brochure online at mnpower.com/treebook or call 800-228-4966 to receive a free copy.

One Call is a free service that notifies utilities of your dig site. Utility personnel will visit the site and mark underground electric, natural gas and phone lines.