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PEWAUKEE, Wis.--([ BUSINESS WIRE ])--American Transmission Co. and Minnesota Power, a utility division of ALLETE (NYSE: ALE), have entered into a partnership agreement to study transmission development options to move Midwestern wind energy as well as Canadian hydroelectric power into Minnesota, Wisconsin and Michigan to help local utilities enhance reliability and meet renewable energy goals.

"The transmission grid does not end at state lines or national borders. Strategic connections between clean energy generation and load centers within a given region can deliver the greatest reliability, economic and public policy benefits for utilities and electric consumers."

Separately, Minnesota Power plans to enhance its transmission infrastructure from Winnipeg to Minnesotaas Mesabi Iron Range. Minnesota Power recently signed a 15-year agreement to purchase 250 megawatts of hydroelectricity from Manitoba Hydroas proposed 695-MW Keeyask Hydroelectric Plant in Northern Manitoba.

To further facilitate movement of this renewable energy, ATC and Minnesota Power are partnering to develop a proposed 50-mile, double-circuit 345-kilovolt transmission line from the Mesabi Iron Range to the companiesa jointly owned Arrowhead Substation in Duluth, Minn., for service in approximately 2020. In addition, the partners are studying transmission options to strengthen regional electric system reliability and move clean energy from the Arrowhead Substation in Duluth into Wisconsin and Michigan. Total project cost, ownership shares and cost allocation still are to be determined.

John Flynn, ATC vice president of Strategic Planning and Business Development, said, aThe transmission grid does not end at state lines or national borders. Strategic connections between clean energy generation and load centers within a given region can deliver the greatest reliability, economic and public policy benefits for utilities and electric consumers.a

ALLETE Chairman, President and CEO Alan R. Hodnik, said, aTransmission development is the vital link in connecting these abundant Canadian renewable energy resources to the Midwestern United States. We look forward to working with ATC on identifying and developing cost-effective solutions for the safe and reliable delivery of this power to Minnesota Power customers as well as other utilities in the region.a

ATC and Minnesota Power worked together on the 220-mile, 345-kV Arrowhead-Weston transmission line from Duluth, Minn., to Wausau, Wis., which was placed in service in 2008.

ATC owns, operates, builds and maintains the high-voltage electric transmission system serving portions of Wisconsin, Michigan, Minnesota and Illinois. Formed in 2001 as the nationas first multi-state transmission-only utility, ATC has invested $2.7 billion to improve the adequacy and reliability of its infrastructure. ATC now is a $3.1 billion company with 9,440 miles of transmission lines and 519 substations. For more information, visit our website at [ www.atcllc.com ].