Minnesota Power Expands Wind Energy Portfolio to Iron Range

Minnesota Power, an ALLETE company (NYSE:ALE), announced today it intends to build, own and operate the first commercial wind energy facility in northeastern Minnesota. The 25-megawatt Minnesota Power Taconite Ridge I Energy Center is proposed to be located in central St. Louis County on property owned by United States Steel Corporation near its Minntac Mine in Mountain Iron. Analysis undertaken by Minnesota Power showed the Minntac location was the best site to build a commercial wind facility in northeastern Minnesota.

The entire output of 10 - 2.5 megawatt turbines, built by Clipper Windpower, Inc., a wholly owned subsidiary of Clipper Windpower Plc (London:CWP), will be used by Minnesota Power to serve its customer energy needs. Existing infrastructure will allow Minnesota Power to move the energy through its system without the need to build additional transmission lines.

“We are pleased to add the Taconite Ridge wind project to the Minnesota Power renewable energy portfolio,” said Don Shippar, ALLETE Chairman, President and CEO. “The decision to build, own and operate a wind energy generation facility will help Minnesota Power meet customer energy needs while utilizing a renewable energy source.”

Shippar noted that Minnesota Power already utilizes approximately 50 megawatts of wind energy from the Oliver Wind 1 Energy Center in North Dakota, and has contracted to add another 50 megawatts of wind energy from North Dakota by the end of 2007.

“We are very grateful to U. S. Steel for its cooperation in developing this renewable energy source,” said Eric Norberg, Minnesota Power senior vice president. “We continue to work with other entities, including other customers and the Mountain Iron Economic Development Authority, who may wish to partner with us on this and other projects.”

The Taconite Ridge facility is expected to cost approximately $50 million and its construction is subject to receipt of regulatory approvals. Minnesota Power expects the facility to be operational by mid-2008. The company intends to seek current cost recovery through the Minnesota Public Utilities Commission.

Minnesota Power provides electricity in a 26,000-square-mile electric service territory located in northeastern Minnesota. Minnesota Power supplies retail electric service to 141,000 customers, wholesale electric service to 16 municipalities, and some of the largest industrial customers in the United States. More information can be found at: www.mnpower.com.

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.