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Item 7.01	Regulation FD Disclosure

•	In January 2018, the Minnesota Public Utilities Commission made determinations regarding Minnesota Power's general rate case, filed in November 2016. Final rates are expected to commence in the fourth quarter of 2018; interim rates will be collected through this period which will be fully offset by the recognition of a corresponding reserve.

•	Additional cost recovery rider revenue from the Great Northern Transmission Line capital investments, with Minnesota Power’s portion of anticipated expenditures estimated at approximately $110 million in 2018.

•	2018 industrial sales of approximately 7.0 million to 7.5 million megawatt-hours (MWh), which reflects anticipated production from our taconite customers of approximately 39 million tons in 2018.

•	Operating and maintenance expense slightly lower than 2017.

•	Higher depreciation expense due to additional plant in service.

•	Higher property tax and interest expense.

•	Additional investments in the American Transmission Company LLC of approximately $6 million.

•	No material impact in 2018 due to the TCJA. Lower income taxes for our regulated operations will be recorded as regulatory liabilities pending future regulatory decisions.

•	2018 guidance assumes that we will achieve reasonable outcomes in regulatory proceedings.

•	ALLETE Clean Energy expects approximately 1.4 million MWh (1.2 million MWh in 2017) in total wind generation.

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We expect to spend approximately $25 million in 2018 to requalify wind turbine generators (WTG) at ALLETE Clean Energy's Storm Lake I, Storm Lake II and Lake Benton facilities in 2018. Overall, we expect to spend a total of approximately $80 million to requalify these facilities, which we project will generate an estimated $180 million in production tax credits over the life of those credits. Production tax credits related to these WTG projects are estimated to be approximately $5 million in 2018, $10 million in 2019, $15 million to $20 million in 2020 through 2027, and decreasing thereafter through 2030.

•	2018 guidance includes the construction and sale of an approximately 50 megawatt wind energy facility to Montana-Dakota Utilities Co., a division of MDU Resources Group, Inc.

•	Higher operating expenses compared to 2017.

•	Guidance does not include the impact, if any, of possible acquisitions of renewable energy facilities, additional construction and sale projects, and requalification projects other than those previously disclosed.

•	Assumes organic revenue growth of approximately 8 percent, excluding the year-over-year impact of the September 2017 acquisition of Tonka Water. Including Tonka Water, revenues are projected to increase to approximately $180 million to $190 million.

•	Earnings before interest, income taxes, depreciation and amortization of approximately 12 percent of revenues.

•	Cash flow from operations are forecast to be $15 million ($12 million in 2017).

•	Guidance does not include the impact, if any, of possible acquisitions.

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•	Similar operating results at BNI Energy and ALLETE Properties.

•	A consolidated effective income tax rate of approximately negative 10 percent in 2018 due to federal production tax credits as a result of wind generation from our Bison Wind Energy Center and requalification of wind turbine generators at ALLETE Clean Energy, and impacts from the TCJA.

•	Earnings per share dilution of approximately $0.05 due to additional average number of shares of common stock outstanding.

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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;

•	real estate market conditions where our legacy Florida real estate investment is located may not improve;

•	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 our 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, creditworthiness of customers, ability to obtain materials required to perform services, and changing market conditions.

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