Minnesota Power In Environmental Deal With EPA

(RTTNews) - Electric utility Minnesota Power, a part of Allete Inc (ALE), Wednesday reached a settlement agreement with the Environmental Protection Agency and the Minnesota Pollution Control Agency that resolves alleged violations of the New Source Review provisions of the Clean Air Act. The agreement does not include any admission of wrongdoing on the part of the company.

Minnesota Power is one of many utility companies in the U.S. whose investments in electric generation facilities were reviewed as part of the EPA's Coal-Fired Power Plant Enforcement Initiative that began in 1999. The initiative has resulted in more than 25 related settlements nationwide.

"The company has been in discussions with the EPA since 2008 to settle this matter to avoid costly litigation, in the best interest of our customers and other stakeholders," said Allete Senior Vice President, General Counsel and Secretary Deb Amberg. "We are pleased to have reached a settlement that recognizes the significant investments we've already made to reduce emissions."

Since 2006, the company has invested or will invest more than $600 million to reduce sulfur dioxide, nitrogen oxide, mercury and particulate matter emissions at its thermal generation facilities.

Minnesota Power will also spend $4.2 million over the next five years in conservation and clean energy projects.

Under the terms of the settlement, the company will also pay a $1.4 million civil penalty. In the second quarter of 2014, Allete recorded an after-tax expense of $2.5 million, or $0.06 per share, to reflect a liability associated with the conservation and clean energy projects. Due to its non-recurring nature, the expense will be excluded from 2014 earnings guidance. A liability for the civil penalty was recognized in 2013.