Surging demand for power boosts Allete profitsWith increased earnings, Allete is reporting a good second quarter, largely because of the taconite industry returning to higher production.
With increased earnings, Allete is reporting a good second quarter, largely because of the taconite industry returning to higher production.
Second-quarter corporate earnings for the energy company reached 57 cents per share on revenues of $211.2 million and a net income of $19.4 million. That compares to 29 cents per share during the same period a year ago on $164.7 million revenue and net income of $9.4 million, according to a Wednesday company release.
Industrial kilowatt-hour sales for Minnesota Power, an Allete holding, were 98 percent higher than in the second quarter of 2009, when its taconite customers sharply curtailed production.
That power demand is expected to continue. Minnesota Power received notification from its industrial clients that in the last four months of this year, they’ll need about 43 percent more power than they did during the same period last year, the release said.
Besides the greater industrial sales, an interim electric rate approved by the Minnesota Public Utilities Commission also contributed to the higher earnings.