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Item 7.01	Regulation FD Disclosure

•	Increased cost recovery rider revenue due to a full-year impact from the recently completed Boswell 4 environmental project.

•	Lower operating and maintenance expenses from Minnesota Power due to cost control initiatives. Operating and maintenance expenses are expected to be approximately 5 percent to 10 percent lower than 2014 actual expenses despite known increases for our 200 MW Bison 4 wind facility put in service at the end of 2014.

•	Higher depreciation expense primarily related to recent asset additions.

•	The mid-point of our guidance range reflects estimated production levels from our taconite customers of approximately 35 million tons in 2016, which includes the December 1, 2015, demand nominations. Based on nominations received on December 1, 2015, Minnesota Power’s large power taconite customers nominated at approximately 80 percent of full demand levels for January through April of 2016.

•	Minimal electricity sales to the Nashwauk Public Utilities Commission for electric service to Essar Steel Minnesota’s taconite mine and processing facility. The Nashwauk Public Utilities Commission is a wholesale customer of Minnesota Power. Essar has stated that it expects to achieve full production capability in 2016.

•	For 2016 earnings guidance purposes, ALLETE is not including any financial impact from a potential rate case at this time. Minnesota Power anticipates making a decision on the timing of its next general rate case during 2016.

•	Our 2016 guidance includes the expectation of reasonable regulatory outcomes.

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Anticipated earnings growth from ALLETE Clean Energy due to a full year of operations from wind energy facilities that were acquired during 2015 and excludes the impact, if any, of possible acquisitions of renewable energy facilities. ALLETE Clean Energy is targeting acquisitions of existing facilities with a purchase price in the $50 million to $100 million range, and which have long-term power sales agreements in place for the facility’s output. Results for 2015 include the fee for the construction and sale of a wind project.

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Increased earnings at U.S. Water Services, which was acquired in February 2015, due to a full year of operations, anticipated revenue growth, and lower amortization expense associated with purchase accounting for inventories and sales backlog, and excludes the impact, if any, of possible strategic tuck-in acquisitions. U.S. Water Services expects to pursue periodic strategic tuck-in acquisitions with a purchase price in the $10 million to $50 million range. Priority will be given to acquisitions which expand its geographic reach, add new technology, or deepen its capabilities to serve its expanding customer base.

•	An effective tax rate of approximately 20 percent in 2016 due to federal production tax credits as a result of wind generation from our Bison wind projects.

•	Earnings per share dilution between $0.05 and $0.10 as a result of equity issuances in the first quarter of 2015.

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•	our ability to successfully implement our strategic objectives;

•	global and domestic economic conditions affecting us or our customers;

•	changes in and compliance with laws and regulations;

•	changes in tax rates or policies or in rates of inflation;

•	the outcome of legal and administrative proceedings (whether civil or criminal) and settlements;

•	weather conditions, natural disasters and pandemic diseases;

•	our ability to access capital markets and bank financing;

•	changes in interest rates and the performance of the financial markets;

•	project delays or changes in project costs;

•	changes in operating expenses and capital expenditures and our ability to raise revenues from our customers in regulated rates or sales price increases at our Energy Infrastructure and Related Services businesses;

•	the impacts of commodity prices on ALLETE and our customers;

•	our ability to attract and retain qualified, skilled and experienced personnel;

•	effects of emerging technology;

•	war, acts of terrorism and cyber attacks;

•	our ability to manage expansion and integrate acquisitions;

•	population growth rates and demographic patterns;

•	wholesale power market conditions;

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federal and state regulatory and legislative actions that impact regulated utility economics, including our allowed rates of return, capital structure, ability to secure financing, industry and rate structure, acquisition and disposal of assets and facilities, operation and construction of plant facilities and utility infrastructure, recovery of purchased power, capital investments and other expenses, including present or prospective environmental matters;

•	effects of competition, including competition for retail and wholesale customers;

•	effects of restructuring initiatives in the electric industry;

•	the impacts on our Regulated Operations segment of climate change and future regulation to restrict the emissions of greenhouse gases;

•	effects of increased deployment of distributed low-carbon electricity generation resources;

•	the impacts of laws and regulations related to renewable and distributed generation;

•	pricing, availability and transportation of fuel and other commodities and the ability to recover the costs of such commodities;

•	our current and potential industrial and municipal customers’ ability to execute announced expansion plans;

•	zoning and permitting of land held for resale, real estate development or changes in the real estate market.

•	the success of efforts to realize value from, invest in, and develop new opportunities in, our Energy Infrastructure and Related Services businesses; and

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factors affecting Energy Infrastructure and Related Services businesses, including fluctuations in the volume of customer orders, unanticipated cost increases, changes in legislation and regulations impacting the industries in which the customers served operate, the effects of weather, credit worthiness of customers, ability to obtain materials required to perform services, and changing market conditions.

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