Duluth-based Allete, Inc., the parent company of Minnesota Power, reported its 2019 financial results in a conference call with investors Thursday morning.
The company announced earnings of $3.59 per share on net income of $185.6 million, up from 2018’s results of $3.38 per share on a net income of $174.1 million.
Allete also set its 2020 guidance at $3.40 to $3.70 per share on a net income of $180 million-$190 million.
Minnesota Power, Superior Water Light and Power and the company’s investment in the American Transmission Company, Allete’s regulated businesses, saw a profit increase to $154.4 million in 2019 from $131 million in 2018.
Minnesota Power is seeking to increase its rates for customers.
Last year, Minnesota Power asked the Minnesota Public Utilities Commission to allow it to increase its residential rates by 15% and business rates by 10% after an expected drop in revenue from expiring power sales, increasing expenses and an ongoing transition to more renewable sources of power.
The PUC approved an interim rate increase of 5.8% for all customers last year. That increase took effect Jan. 1.
Final rates are expected to be decided by mid-2021, the company said.
In the call, Allete said it invested $500 million on renewable energy projects in 2019 with another $450 million planned in 2020.
Work on the Minnesota side of the Great Northern Transmission Line, which will carry 250 megawatts of hydropower from Manitoba Hydro in Canada across much of northern Minnesota, was completed “ahead of schedule and under budget,” Bethany Owen, president and CEO of Allete, told investors.
The Canadian side of the transmission line remains under construction, but it is expected to wrap up later this year, Owen said.
Allete shares closed at $81.24 on Thursday, down 3 cents during the day. The stock has been traded for as high as $88.60 and as low as $75.66 in the past year.
This story was updated at 5:01 p.m. Feb. 13 with the day's stock price. It was originally posted at 11:56 a.m. Feb. 13.