Duluth-based Allete, Inc., the parent company of Minnesota Power, reported its second-quarter 2019 earnings in a conference call with investors Thursday morning.
The company announced earnings of 66 cents per share on net income of $34.2 million, up from 61 cents per share on a net income of $31.3 million during the second quarter of 2018.
Allete’s regulated utilities — Minnesota Power, Superior Water Light and Power and its investment in American Transmission Co. — recorded a net income of $30.3 million in the second quarter of 2019, up from $26 million during the same period last year.
“Net income at Minnesota Power was higher primarily due to the timing of fuel adjustment clause recoveries, lower operating and maintenance expenses and increased cost recovery rider revenue,” Allete Chief Financial Officer Bob Adams said, noting those results were partially offset by lower kilowatt-hour sales.
Higher rates at SWL&P gave its net income a boost while Allete’s earnings from American Transmission Co. grew as a result of additional equity investments.
Allete Clean Energy, which builds and operates wind farms throughout the U.S., saw second-quarter net income fall $4.9 million to $1.9 million from 2018 to 2019. In 2018, the company benefited from nearly $2.6 million in tax credits while in 2019 several power sales agreements expired.
While Allete Clean Energy is rapidly expanding, it was also hampered by “a lower than expected wind resources on a year-to-date basis,” said Allete CEO Al Hodnik.
Adams added later that the lower-than-expected wind for the year, but called low wind energy reports throughout the midwest as an “anomaly.”
Allete shares closed at $86.55 on Thursday, down 46 cents during the day. The stock reached an all-time high of $88.58 last month and has been traded as low as $72.42 in the past year.