Investment in ATC. Our wholly-owned subsidiary, ALLETE Transmission Holdings, owns approximately 8 percent of ATC, a Wisconsin-based utility that owns and maintains electric transmission assets in portions of Wisconsin, Michigan, Minnesota and Illinois. We account for our investment in ATC under the equity method of accounting.


ALLETE’s Investment in ATC
Millions
Equity Investment Balance as of December 31, 2024			$194.4
Cash Investments			11.3
Equity in ATC Earnings			12.9
Distributed ATC Earnings			(12.3)
Amortization of the Remeasurement of Deferred Income Taxes			0.6
Equity Investment Balance as of June 30, 2025			$206.9

The FERC issued a Notice of Proposed Rulemaking in 2021 proposing to limit the 0.50 percent incentive adder for participation in a regional transmission organization to only the first three years of membership in such an organization. If this proposal is adopted, our equity in earnings from ATC would be reduced by approximately $1 million pre-tax annually.

Investment in Nobles 2. Our subsidiary, ALLETE South Wind, owns 49 percent of Nobles 2, the entity that owns and operates a 250 MW wind energy facility in southwestern Minnesota pursuant to a 20-year PPA with Minnesota Power. We account for our investment in Nobles 2 under the equity method of accounting.


ALLETE’s Investment in Nobles 2
Millions
Equity Investment Balance as of December 31, 2024			$145.7

Equity in Nobles 2 Earnings (a)			(1.0)
Distributed Nobles 2 Earnings			(1.1)
Equity Investment Balance as of June 30, 2025			$143.6

(a)The Company also recorded earnings from net loss attributable to non-controlling interest of $7.3 million related to its investment in Nobles 2.