Higher rates and more mining pushed Allete's profits to $36.9 million in the second quarter, the company reported Wednesday.
"Our favorable results reflect interim rates associated with Minnesota Power's rate review, strong industrial customer demand and a ... very positive regulatory outcome associated with our Conservation Improvement Program," Allete CEO Al Hodnik said during a call with investors.
The Duluth-based company had revenue of $353.3 million between April and June this year, up from $314.8 million over the same period in 2016.
Earnings beat analyst expectations and were up nearly 33 percent percent over last year as big customers on the Iron Range got back to full production this spring and an interim rate increase of 5.6 percent took effect earlier this year.
Minnesota Power is seeking a 6.1 percent rate increase, which would bring in an additional $38.8 million per year. The Public Utilities Commission could decide the fate of that increase by the end of the year.
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Allete officials said they were optimistic about the future of the utility's largest customers, taconite processing plants.
The quarter's profits represent $0.72 per share, up from $0.50 per share in the second quarter of 2016. Allete said it expects yearly earnings to fall between $3.15 and $3.40 per share.
Though investors pushed the Dow to record levels on Wednesday and Allete's stock briefly flirted with its own year-long high, shares of ALE fell $0.28 to close at $73.73. The stock has traded as high as $74.75 and as low as $56.48 in the past 52 weeks.
