ALLETE (NYSE:ALE), a co-developer of the North Plains Connector transmission project, applauds the U.S. Department of Energy for its support of the Montana Department of Commerce Grid Resilience and Innovation Partnership application and for the planned approximately 415-mile high-voltage direct-current (HVDC) transmission line from central North Dakota to Colstrip, Montana, through a $700 million grant.

The North Plains Connector, a joint project between ALLETE and North Plains Connector LLC, a subsidiary of Grid United LLC, will be the nation’s first HVDC transmission connection between three regional U.S. electric energy markets—the Midcontinent Independent System Operator, the Western Electricity Coordinating Council and the Southwest Power Pool. The line will create 3,000 megawatts of transfer capacity across all three energy markets to ease congestion on the transmission system and increase resiliency and reliability through instantaneous, two-way delivery of energy.

The $700 million DOE grant is part of the Grid Resilience and Innovation Partnerships (GRIP) program to enhance grid flexibility and improve the resilience of the power system against growing threats of extreme weather and climate change. The program is intended to accelerate transformative projects that will help to ensure the reliability of the power sector’s infrastructure and reduce costs for utility customers.

The DOE announced recipients of a second round of GRIP grants today at a news conference. The Montana Department of Commerce applied for the grant on behalf of the North Plains Connector Interregional Innovation Consortium, which includes utilities ALLETE, Avista, Minnkota Power Cooperative, Montana-Dakota Utilities, NorthWestern Energy, Otter Tail Power Co., Portland General Electric and Puget Sound Energy. The consortium also includes North Dakota Transmission Authority and the Standing Rock Sioux Tribe, the latter of which is a co-applicant with the Montana Department of Commerce.

“This grant certainly reinforces the importance of expanding and strengthening our nation’s grid—this innovative project will enhance energy reliability and resilience across a large part of the nation,” said ALLETE Chair, President and CEO Bethany Owen. “We are excited to be part of this historic investment in critical infrastructure as we continue to advance our sustainability in action strategy. We are always stronger when we work together, as shown by this program that unites government, utilities and private industry to benefit the broader region.”

The HVDC transmission project represents an approximately $3.2 billion total investment in Montana and North Dakota and is expected to create over 600 jobs during construction. Connecting the North Dakota and Montana grids will help mitigate the impact of extreme weather events and accommodate the growing demand for electricity. Once built, the transmission line will enable additional energy production in Montana and North Dakota.

ALLETE expects to pursue up to 35% ownership share in the project.

ALLETE and Grid United will work together on development activities and bringing the line into service by 2032, pending regulatory and other necessary approvals. For more project information, visit northplainsconnector.com.

ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth; BNI Energy in Bismarck, North Dakota; and New Energy Equity, headquartered in Annapolis, Maryland; and has an 8% equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com.

ALE-CORP

ALLETE calculates and reports carbon emissions based on the GHG Protocol. Details in ALLETE’s Corporate Sustainability Report.

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.

Amy Rutledge 218-348-2961 arutledge@mnpower.com

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