| T | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-----------------------------------------------------------------------------------------|

| £ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|--------|------------------------------------------------------------------------------------------|

| Minnesota                                                      |   | 41-0418150                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

| Large Accelerated Filer T    | Accelerated Filer £              |
|------------------------------|---------------------------------------|
| Non-Accelerated Filer £ | Smaller Reporting Company £ |

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|                                                                                  |                                       |                                                                                       | Page   |
|---------------------------------------------------------------------------------------|--------------------------------------------|--------------------------------------------------------------------------------------------|--------|
|                                                                                  |                                       |                                                                                       |   |
| Definitions                                                                           |                                       |                                                                                       | 3      |
|                                                                                  |                                       |                                                                                       |   |
| Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 | 5                                          |
|                                                                                  |                                       |                                                                                       |   |
| Part I.                                                                               | Financial Information                      |                                                                                       |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 1.                                    | Financial Statements (Unaudited)                                                           |   |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Consolidated Balance Sheet -               |                                                                                       |
|                                                                                  |                                       | March 31, 2010 and December 31, 2009                                                       | 6      |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Consolidated Statement of Income -         |                                                                                       |
|                                                                                  |                                       | Quarter Ended March 31, 2010 and 2009                                                      | 7      |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Consolidated Statement of Cash Flows -     |                                                                                       |
|                                                                                  |                                       | Three Months Ended March 31, 2010 and 2009                                                 | 8      |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Notes to Consolidated Financial Statements | 9                                                                                          |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 2.                                    | Management’s Discussion and Analysis of Financial Conditionand Results of Operations | 26     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 3.                                    | Quantitative and Qualitative Disclosures about Market Risk                                 | 38     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 4.                                    | Controls and Procedures                                                                    | 39     |
|                                                                                  |                                       |                                                                                       |   |
| Part II.                                                                              | Other Information                          |                                                                                       |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 1.                                    | Legal Proceedings                                                                          | 39     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 1A.                                   | Risk Factors                                                                               | 39     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 2.                                    | Unregistered Sales of Equity Securities and Use of Proceeds                                | 39     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 3.                                    | Defaults Upon Senior Securities                                                            | 39     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 4.                                    | Reserved                                                                                   | 39     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 5.                                    | Other Information                                                                          | 39     |
|                                                                                  |                                       |                                                                                       |   |
|                                                                                  | Item 6.                                    | Exhibits                                                                                   | 40     |
|                                                                                  |                                       |                                                                                       |   |
| Signatures                                                                            |                                       |                                                                                       | 41     |

----

Definitions

| Abbreviation or Acronym    | Term                                                                                                                                                                         |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AC                         | Alternating Current                                                                                                                                                               |
| AFUDC                      | Allowance for Funds Used During Construction – consisting of the cost of both the debt and equity funds used to finance utility plant additions during construction periods |
| ALLETE                     | ALLETE, Inc.                                                                                                                                                                      |
| ALLETE Properties          | ALLETE Properties, LLC and its subsidiaries                                                                                                                                       |
| ARS                        | Auction Rate Securities                                                                                                                                                           |
| ATC                        | American Transmission Company LLC                                                                                                                                                 |
| Basin                      | Basin Electric Power Cooperative                                                                                                                                                  |
| Bison I                    | Bison I Wind Project                                                                                                                                                              |
| BNI Coal                   | BNI Coal, Ltd.                                                                                                                                                                    |
| Boswell                    | Boswell Energy Center                                                                                                                                                             |
| Boswell NOX Reduction Plan | Plan to reduce NOX emissions from Boswell Units 1, 2, and 4                                                                                                                       |
| CO2                        | Carbon Dioxide                                                                                                                                                                    |
| Company                    | ALLETE, Inc. and its subsidiaries                                                                                                                                                 |
| DC                         | Direct Current                                                                                                                                                                    |
| EPA                        | Environmental Protection Agency                                                                                                                                                   |
| ESOP                       | Employee Stock Ownership Plan                                                                                                                                                     |
| FASB                       | Financial Accounting Standards Board                                                                                                                                              |
| FERC                       | Federal Energy Regulatory Commission                                                                                                                                              |
| Form 10-K                  | ALLETE Annual Report on Form 10-K                                                                                                                                                 |
| Form 10-Q                  | ALLETE Quarterly Report on Form 10-Q                                                                                                                                              |
| FTR                        | Financial Transmission Rights                                                                                                                                                     |
| GAAP                       | United States Generally Accepted Accounting Principles                                                                                                                            |
| GHG                        | Greenhouse Gases                                                                                                                                                                  |
| IBEW Local 31              | International Brotherhood of Electrical Workers Local 31                                                                                                                          |
| Invest Direct              | ALLETE’s Direct Stock Purchase and Dividend Reinvestment Plan                                                                                                               |
| kV                         | Kilovolt(s)                                                                                                                                                                       |
| Laskin                     | Laskin Energy Center                                                                                                                                                              |
| Manitoba Hydro             | Manitoba Hydro-Electric Board                                                                                                                                                     |
| Minnesota Power            | An operating division of ALLETE, Inc.                                                                                                                                             |
| Minnkota Power             | Minnkota Power Cooperative, Inc.                                                                                                                                                  |
| MISO                       | Midwest Independent Transmission System Operator, Inc.                                                                                                                            |
| MPCA                       | Minnesota Pollution Control Agency                                                                                                                                                |
| MPUC                       | Minnesota Public Utilities Commission                                                                                                                                             |
| MW / MWh                   | Megawatt(s) / Megawatt-hour(s)                                                                                                                                                    |
| NDPSC                      | North Dakota Public Service Commission                                                                                                                                            |
| Non-residential            | Retail commercial, non-retail commercial, office, industrial, warehouse, storage and institutional                                                                                |

----

| Definitions (Continued)  |
|-------------------------------|
| Abbreviation or Acronym       | Term |
| NOX                           | Nitrogen Oxide |
| Note ___                      | Note ___ to the consolidated financial statements in this Form 10-Q |
| Oliver Wind I                 | Oliver Wind I Energy Center |
| Oliver Wind II                | Oliver Wind II Energy Center |
| Palm Coast Park               | Palm Coast Park development project in Florida |
| Palm Coast Park District      | Palm Coast Park Community Development District |
| PSCW                          | Public Service Commission of Wisconsin |
| Rainy River Energy            | Rainy River Energy Corporation - Wisconsin |
| SEC                           | Securities and Exchange Commission |
| SO2                           | Sulfur Dioxide |
| Square Butte                  | Square Butte Electric Cooperative |
| SWL&P                     | Superior Water, Light and Power Company |
| Taconite Harbor               | Taconite Harbor Energy Center |
| Taconite Ridge                | Taconite Ridge Energy Center |
| Town Center                   | Town Center at Palm Coast development project in Florida |
| Town Center District          | Town Center at Palm Coast Community Development District |
| WDNR                          | Wisconsin Department of Natural Resources |

----

Safe Harbor Statement

| · | our ability to successfully implement our strategic objectives;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | prevailing governmental policies, regulatory actions, and legislation including those of the United States Congress, state legislatures, the FERC, the MPUC, the PSCW, the NDPSC, the EPA and other various state, local, and county regulators, and city administrators, about allowed rates of return, financings, industry and rate structure, acquisition and disposal of assets and facilities, real estate development, operation and construction of plant facilities, recovery of purchased power, capital investments and other expenses, present or prospective wholesale and retail competition (including but not limited to transmission costs), zoning and permitting of land held for resale and environmental matters; |
| · | our ability to manage expansion and integrate acquisitions;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the potential impacts of climate change and future regulation to restrict the emissions of GHG on our Regulated Operations;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | effects of restructuring initiatives in the electric industry;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| · | economic and geographic factors, including political and economic risks;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| · | changes in and compliance with laws and regulations;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | weather conditions;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | natural disasters and pandemic diseases;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| · | war and acts of terrorism;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| · | wholesale power market conditions;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| · | population growth rates and demographic patterns;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| · | effects of competition, including competition for retail and wholesale customers;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| · | changes in the real estate market;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| · | pricing and transportation of commodities;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| · | changes in tax rates or policies or in rates of inflation;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| · | project delays or changes in project costs;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | availability and management of construction materials and skilled construction labor for capital projects;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| · | changes in operating expenses, capital and land development expenditures;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | global and domestic economic conditions affecting us or our customers;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | our ability to access capital markets and bank financing;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | changes in interest rates and the performance of the financial markets;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| · | our ability to replace a mature workforce and retain qualified, skilled and experienced personnel; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | the outcome of legal and administrative proceedings (whether civil or criminal) and settlements that affect the business and profitability of ALLETE.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

|   | PART I.  FINANCIAL INFORMATION |
|--------|------------------------------------------|

|   | ITEM 1.  FINANCIAL STATEMENTS |
|--------|-----------------------------------------|

CONSOLIDATED BALANCE SHEET

|                                                                                                        |  March 31, |  December 31, |
|-------------------------------------------------------------------------------------------------------------|-----------------|--------------------|
|                                                                                                        | 2010            | 2009               |
|                                                                                                        |            |               |
| Assets                                                                                                      |            |               |
| Current Assets                                                                                              |            |               |
| Cash and Cash Equivalents                                                                                   | $32.5           | $25.7              |
| Accounts Receivable (Less Allowance of $0.9 at March 31, 2010 and    December 31, 2009) | 119.0           | 118.5              |
| Inventories                                                                                                 | 51.7            | 57.0               |
| Prepayments and Other                                                                                       | 19.4            | 24.3               |
| Total Current Assets                                                                                        | 222.6           | 225.5              |
| Property, Plant and Equipment - Net                                                                         | 1,649.1         | 1,622.7            |
| Regulatory Assets                                                                                           | 287.9           | 293.2              |
| Investment in ATC                                                                                           | 90.3            | 88.4               |
| Other Investments                                                                                           | 132.6           | 130.5              |
| Other Assets                                                                                                | 33.5            | 32.8               |
| Total Assets                                                                                                | $2,416.0        | $2,393.1           |
|                                                                                                        |            |               |
| Liabilities and Equity                                                                                      |            |               |
| Liabilities                                                                                                 |            |               |
| Current Liabilities                                                                                         |            |               |
| Accounts Payable                                                                                            | $36.4           | $62.1              |
| Accrued Taxes                                                                                               | 25.0            | 20.6               |
| Accrued Interest                                                                                            | 9.7             | 11.1               |
| Long-Term Debt Due Within One Year                                                                          | 1.6             | 5.2                |
| Notes Payable                                                                                               | 1.7             | 1.9                |
| Other                                                                                                       | 34.2            | 32.2               |
| Total Current Liabilities                                                                                   | 108.6           | 133.1              |
| Long-Term Debt                                                                                              | 710.1           | 695.8              |
| Deferred Income Taxes                                                                                       | 266.5           | 253.1              |
| Regulatory Liabilities                                                                                      | 47.2            | 47.1               |
| Other Liabilities                                                                                           | 326.4           | 325.0              |
| Total Liabilities                                                                                           | 1,458.8         | 1,454.1            |
|                                                                                                        |            |               |
| Commitments and Contingencies (Note 14)                                                                     |            |               |
|                                                                                                        |            |               |
| Equity                                                                                                      |            |               |
| ALLETE’s Equity                                                                                       |            |               |
| Common Stock Without Par Value, 80.0 Shares Authorized, 35.5 and 35.2 Shares Outstanding                    | 621.2           | 613.4              |
| Unearned ESOP Shares                                                                                        | (42.9)          | (45.3)             |
| Accumulated Other Comprehensive Loss                                                                        | (23.6)          | (24.0)             |
| Retained Earnings                                                                                           | 393.2           | 385.4              |
| Total ALLETE Equity                                                                                         | 947.9           | 929.5              |
| Non-Controlling Interest in Subsidiaries                                                                    | 9.3             | 9.5                |
| Total Equity                                                                                                | 957.2           | 939.0              |
| Total Liabilities and Equity                                                                                | $2,416.0        | $2,393.1           |

----

CONSOLIDATED STATEMENT OF INCOME

|                                                    | Quarter Ended |
|---------------------------------------------------------|---------------|
|                                                    | March 31,     |
|                                                    | 2010          | 2009 |
|                                                    |          |   |
| Operating Revenue                                       |          |   |
| Operating Revenue                                       | $233.6        | $204.9 |
| Prior Year Rate Refunds                                 | –       | (5.3) |
| Total Operating Revenue                                 | 233.6         | 199.6 |
|                                                    |          |   |
| Operating Expenses                                      |          |   |
| Fuel and Purchased Power                                | 79.8          | 72.8 |
| Operating and Maintenance                               | 87.7          | 80.5 |
| Depreciation                                            | 20.0          | 15.2 |
| Total Operating Expenses                                | 187.5         | 168.5 |
|                                                    |          |   |
| Operating Income                                        | 46.1          | 31.1 |
|                                                    |          |   |
| Other Income (Expense)                                  |          |   |
| Interest Expense                                        | (8.9)         | (8.7) |
| Equity Earnings in ATC                                  | 4.5           | 4.2 |
| Other                                                   | 1.0           | 1.1 |
| Total Other Income (Expense)                            | (3.4)         | (3.4) |
|                                                    |          |   |
| Income Before Non-Controlling Interest and Income Taxes | 42.7          | 27.7 |
| Income Tax Expense                                      | 19.9          | 10.8 |
| Net Income                                              | 22.8          | 16.9 |
| Less: Non-Controlling Interest in Subsidiaries          | (0.2)         | – |
| Net Income Attributable to ALLETE                       | $23.0         | $16.9 |
|                                                    |          |   |
| Average Shares of Common Stock                          |          |   |
| Basic                                                   | 33.8          | 30.9 |
| Diluted                                                 | 33.8          | 31.0 |
|                                                    |          |   |
| Basic Earnings Per Share of Common Stock                | $0.68         | $0.55 |
| Diluted Earnings Per Share of Common Stock              | $0.68         | $0.55 |
|                                                    |          |   |
| Dividends Per Share of Common Stock                     | $0.44         | $0.44 |

----

CONSOLIDATED STATEMENT OF CASH FLOWS

|                                                    | Quarter Ended |
|---------------------------------------------------------|---------------|
|                                                    | March 31,     |
|                                                    | 2010          | 2009 |
|                                                    |          |   |
| Operating Activities                                    |          |   |
| Net Income                                              | $22.8         | $16.9 |
| Allowance for Funds Used During Construction            | (1.2)         | (1.3) |
| (Income) Loss from Equity Investments, Net of Dividends | (0.4)         | 0.3 |
| Depreciation Expense                                    | 20.0          | 15.2 |
| Amortization of Debt Issuance Costs                     | 0.2           | 0.2 |
| Deferred Income Tax Expense                             | 11.8          | 10.5 |
| Stock Compensation Expense                              | 0.5           | 0.6 |
| Bad Debt Expense                                        | 0.2           | 0.3 |
| Changes in Operating Assets and Liabilities             |          |   |
| Accounts Receivable                                     | (0.6)         | (0.3) |
| Inventories                                             | 5.4           | (0.1) |
| Prepayments and Other                                   | 4.9           | 4.5 |
| Accounts Payable                                        | (20.0)        | (10.0) |
| Other Current Liabilities                               | 5.0           | 6.9 |
| Regulatory and Other Assets                             | 5.1           | (1.2) |
| Regulatory and Other Liabilities                        | 3.0           | (8.0) |
| Cash from Operating Activities                          | 56.7          | 34.5 |
|                                                    |          |   |
| Investing Activities                                    |          |   |
| Proceeds from Sale of Available-for-sale Securities     | 0.6           | 0.9 |
| Payments for Purchase of Available-for-sale Securities  | (1.2)         | (0.2) |
| Investment in ATC                                       | (1.2)         | (1.9) |
| Changes to Other Investments                            | (1.8)         | 6.2 |
| Additions to Property, Plant and Equipment              | (48.1)        | (74.6) |
| Cash for Investing Activities                           | (51.7)        | (69.6) |
|                                                    |          |   |
| Financing Activities                                    |          |   |
| Proceeds from Issuance of Common Stock                  | 7.3           | 2.8 |
| Proceeds from Issuance of Long-Term Debt                | 80.0          | 42.9 |
| Reductions of Long-Term Debt                            | (69.4)        | (0.5) |
| Debt Issuance Costs                                     | (0.7)         | (0.5) |
| Dividends on Common Stock                               | (15.2)        | (13.6) |
| Changes in Notes Payable                                | (0.2)         | – |
| Cash from Financing Activities                          | 1.8           | 31.1 |
|                                                    |          |   |
| Change in Cash and Cash Equivalents                     | 6.8           | (4.0) |
| Cash and Cash Equivalents at Beginning of Period        | 25.7          | 102.0 |
|                                                    |          |   |
| Cash and Cash Equivalents at End of Period              | $32.5         | $98.0 |

----

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|                   | March 31, | December 31, |
|------------------------|-----------|--------------|
| Inventories            | 2010      | 2009         |
| Millions               |      |         |
| Fuel                   | $16.8     | $23.0        |
| Materials and Supplies | 34.9      | 34.0         |
| Total Inventories      | $51.7     | $57.0        |

|                                       | March 31, | December 31, |
|--------------------------------------------|-----------|--------------|
| Prepayments and Other Current Assets       | 2010      | 2009         |
| Millions                                   |      |         |
| Deferred Fuel Adjustment Clause            | $12.7     | $15.5        |
| Other                                      | 6.7       | 8.8          |
| Total Prepayments and Other Current Assets | $19.4     | $24.3        |

|                                                                                          | March 31, | December 31, |
|-----------------------------------------------------------------------------------------------|-----------|--------------|
| Other Liabilities                                                                             | 2010      | 2009         |
| Millions                                                                                      |      |         |
| Future Benefit Obligation Under Defined Benefit Pension andOther Postretirement Benefit Plans | $230.1    | $231.2       |
| Asset Retirement Obligation                                                                   | 48.0      | 44.6         |
| Other                                                                                         | 48.3      | 49.2         |
| Total Other Liabilities                                                                       | $326.4    | $325.0       |

| For the Quarter Ended March 31,                                                  | 2010    | 2009    |
|----------------------------------------------------------------------------------|---------|---------|
| Millions                                                                         |    |    |
| Cash Paid During the Period for                                                  |    |    |
| Interest – Net of Amounts Capitalized                                      | $10.0   | $7.3    |
| Income Taxes                                                                     | $1.0    | $0.6    |
|                                                                             |    |    |
| Noncash Investing and Financing Activities                                       |    |    |
| Change in Accounts Payable for Capital Additions to Property Plant and Equipment | $(5.7)  | $(13.8) |
| AFUDC – Equity                                                             | $1.2    | $1.3    |
| ALLETE Common Stock contributed to the Defined Benefit Pension Plan              | – | $(12.0) |

----

----

|                                                           | Regulated    | Investments |
|----------------------------------------------------------------|--------------|-------------|
|                                                           | Consolidated | Operations  | and Other |
| Millions                                                       |         |        |   |
| For the Quarter Ended March 31, 2010                           |         |        |   |
| Operating Revenue                                              | $233.6       | $216.1      | $17.5 |
| Fuel and Purchased Power                                       | 79.8         | 79.8        | – |
| Operating and Maintenance                                      | 87.7         | 69.8        | 17.9 |
| Depreciation Expense                                           | 20.0         | 19.0        | 1.0 |
| Operating Income (Loss)                                        | 46.1         | 47.5        | (1.4) |
| Interest Expense                                               | (8.9)        | (7.6)       | (1.3) |
| Equity Earnings in ATC                                         | 4.5          | 4.5         | – |
| Other Income (Expense)                                         | 1.0          | 1.2         | (0.2) |
| Income (Loss) Before Non-Controlling Interest and Income Taxes | 42.7         | 45.6        | (2.9) |
| Income Tax Expense (Benefit)                                   | 19.9         | 20.7        | (0.8) |
| Net Income (Loss)                                              | 22.8         | 24.9        | (2.1) |
| Less: Non-Controlling Interest in Subsidiaries                 | (0.2)        | –     | (0.2) |
| Net Income (Loss) Attributable to ALLETE                       | $23.0        | $24.9       | $(1.9) |
|                                                           |         |        |   |
| As of March 31, 2010                                           |         |        |   |
| Total Assets                                                   | $2,416.0     | $2,196.4    | $219.6 |
| Property, Plant and Equipment – Net                      | $1,649.1     | $1,604.0    | $45.1 |
| Accumulated Depreciation                                       | $990.3       | $942.8      | $47.5 |
| Capital Additions                                              | $43.6        | $43.4       | $0.2 |

|                                                           | Regulated    | Investments |
|----------------------------------------------------------------|--------------|-------------|
|                                                           | Consolidated | Operations  | and Other |
| Millions                                                       |         |        |   |
| For the Quarter Ended March 31, 2009                           |         |        |   |
| Operating Revenue                                              | $204.9       | $186.4      | $18.5 |
| Prior Year Rate Refunds                                        | (5.3)        | (5.3)       | – |
| Total Operating Revenue                                        | 199.6        | 181.1       | 18.5 |
| Fuel and Purchased Power                                       | 72.8         | 72.8        | – |
| Operating and Maintenance                                      | 80.5         | 62.8        | 17.7 |
| Depreciation Expense                                           | 15.2         | 14.1        | 1.1 |
| Operating Income (Loss)                                        | 31.1         | 31.4        | (0.3) |
| Interest Expense                                               | (8.7)        | (7.3)       | (1.4) |
| Equity Earnings in ATC                                         | 4.2          | 4.2         | – |
| Other Income (Expense)                                         | 1.1          | 1.2         | (0.1) |
| Income (Loss) Before Non-Controlling Interest and Income Taxes | 27.7         | 29.5        | (1.8) |
| Income Tax Expense (Benefit)                                   | 10.8         | 11.8        | (1.0) |
| Net Income (Loss)                                              | 16.9         | 17.7        | (0.8) |
| Less: Non-Controlling Interest in Subsidiaries                 | –      | –     | – |
| Net Income (Loss) Attributable to ALLETE                       | $16.9        | $17.7       | $(0.8) |
|                                                           |         |        |   |
| As of March 31, 2009                                           |         |        |   |
| Total Assets                                                   | $2,168.9     | $1,872.5    | $296.4 |
| Property, Plant and Equipment – Net                      | $1,435.2     | $1,381.9    | $53.3 |
| Accumulated Depreciation                                       | $867.1       | $817.6      | $49.5 |
| Capital Additions                                              | $61.7        | $60.8       | $0.9 |

----

|                          | March 31, | December 31, |
|-------------------------------|-----------|--------------|
| Investments                   | 2010      | 2009         |
| Millions                      |      |         |
| ALLETE Properties             | $93.3     | $93.1        |
| Available-for-sale Securities | 30.0      | 29.5         |
| Other                         | 9.3       | 7.9          |
| Total Investments             | $132.6    | $130.5       |

|                                               | March 31, | December 31, |
|----------------------------------------------------|-----------|--------------|
| ALLETE Properties                                  | 2010      | 2009         |
| Millions                                           |      |         |
| Land Held-for-sale Beginning Balance               | $74.9     | $71.2        |
| Additions during period: Capitalized Improvements  | 0.6       | 5.6          |
| Deductions during period: Cost of Real Estate Sold | –   | (1.9)        |
| Land Held-for-sale Ending Balance                  | 75.5      | 74.9         |
| Long-Term Finance Receivables                      | 12.5      | 12.9         |
| Other                                              | 5.3       | 5.3          |
| Total Real Estate Assets                           | $93.3     | $93.1        |

----

|                                                                                            | Fair Value as of March 31, 2010 |
|-------------------------------------------------------------------------------------------------|---------------------------------|
| Recurring Fair Value Measures                                                                   | Level 1                         | Level 2 | Level 3 | Total |
| Millions                                                                                        |                            |   |   |   |
| Assets:                                                                                         |                            |   |   |   |
| Equity Securities – Mutual Funds                                                          | $13.0                           | – | – | $13.0 |
| Available-for-sale Securities                                                                   |                            |   |   |   |
|      Corporate Debt Securities                                         | –                         | $7.2 | – | 7.2 |
|      Debt Securities Issued by States of the United States (ARS)       | –                         | – | $6.7 | 6.7 |
|           Total Available-for-sale Securities | –                         | 7.2 | 6.7 | 13.9 |
| Derivatives – Financial Transmission Rights                                               | –                         | – | 0.7 | 0.7 |
| Money Market Funds                                                                              | 7.6                             | – | – | 7.6 |
| Total Fair Value of Assets                                                                      | $20.6                           | $7.2 | $7.4 | $35.2 |
|                                                                                            |                            |   |   |   |
| Liabilities:                                                                                    |                            |   |   |   |
| Deferred Compensation                                                                           | –                         | $14.3 | – | $14.3 |
| Total Fair Value of Liabilities                                                                 | –                         | $14.3 | – | $14.3 |
|                                                                                            |                            |   |   |   |
| Total Net Fair Value of Assets (Liabilities)                                                    | $20.6                           | $(7.1) | $7.4 | $20.9 |

|                                                                                            | Fair Value as of December 31, 2009 |
|-------------------------------------------------------------------------------------------------|------------------------------------|
| Recurring Fair Value Measures                                                                   | Level 1                            | Level 2 | Level 3 | Total |
| Millions                                                                                        |                               |   |   |   |
| Assets:                                                                                         |                               |   |   |   |
| Equity Securities – Mutual Funds                                                          | $17.8                              | – | – | $17.8 |
| Available-for-sale Securities                                                                   |                               |   |   |   |
|      Corporate Debt Securities                                         | –                            | $6.4 | – | 6.4 |
|      Debt Securities Issued by States of the United States (ARS)       | –                            | – | $6.7 | 6.7 |
|           Total Available-for-sale Securities | –                            | 6.4 | 6.7 | 13.1 |
| Derivatives - Financial Transmission Rights                                                     | ­­­–          | – | 0.7 | 0.7 |
| Money Market Funds                                                                              | 1.4                                | – | – | 1.4 |
| Total Fair Value of Assets                                                                      | $19.2                              | $6.4 | $7.4 | $33.0 |
|                                                                                            |                               |   |   |   |
| Liabilities:                                                                                    |                               |   |   |   |
| Deferred Compensation                                                                           | –                            | $14.6 | – | $14.6 |
| Total Fair Value of Liabilities                                                                 | –                            | $14.6 | – | $14.6 |
|                                                                                            |                               |   |   |   |
| Total Net Fair Value of Assets (Liabilities)                                                    | $19.2                              | $(8.2) | $7.4 | $18.4 |

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| Recurring Fair Value MeasuresActivity in Level 3                    |         Derivatives | Debt Securities Issued by States of the United States (ARS) |
|---------------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Millions                                                            |                                                        |                                                        |   |   |
| Balance as of December 31, 2009 and December 31, 2008, respectively | $0.7                                                        | –                                                     | $6.7 | $15.2 |
| Purchases, Sales, Issuances and Settlements, Net                    | –                                                     | –                                                     | – | (0.9) |
| Balance as of March 31, 2010 and March 31, 2009, respectively       | $0.7                                                        | –                                                     | $6.7 | $14.3 |

| Financial Instruments                     | Carrying Amount | Fair Value |
|-------------------------------------------|-----------------|------------|
| Millions                                  |            |       |
| Long-Term Debt, Including Current Portion |            |       |
| March 31, 2010                            | $711.7          | $751.3     |
| December 31, 2009                         | $701.0          | $734.8     |

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|                                                           | March 31, | December 31, |
|----------------------------------------------------------------|-----------|--------------|
| Deferred Regulatory Assets and Liabilities                     | 2010      | 2009         |
| Millions                                                       |      |         |
| Deferred Regulatory Assets                                     |      |         |
| Future Benefit Obligations Under                               |      |         |
| Defined Benefit Pension and Other Postretirement Benefit Plans | $232.8    | $235.8       |
| Boswell Unit 3 Environmental Rider (a)                         | 20.5      | 20.9         |
| Deferred Fuel (b)                                              | 18.1      | 20.8         |
| Income Taxes                                                   | 15.6      | 15.7         |
| Asset Retirement Obligation                                    | 6.6       | 6.3          |
| Deferred MISO Costs                                            | 1.9       | 2.4          |
| Premium on Reacquired Debt                                     | 2.0       | 2.0          |
| Other                                                          | 3.1       | 4.8          |
| Total Deferred Regulatory Assets                               | $300.6    | $308.7       |
|                                                           |      |         |
| Deferred Regulatory Liabilities                                |      |         |
| Income Taxes                                                   | $25.3     | $25.9        |
| Plant Removal Obligations                                      | 17.7      | 16.9         |
| Other                                                          | 4.2       | 4.3          |
| Total Deferred Regulatory Liabilities                          | $47.2     | $47.1        |

| (a) | MPUC-approved current cost recovery rider related to environmental improvements that were placed in service in November of 2009. The rider provides for a true-up calculation to be filed with the MPUC in the first quarter of 2011 for recovery of the rider balance. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | As of March 31, 2010 and December 31, 2009, $5 million of this balance relates to deferred fuel costs incurred under the former base cost of fuel calculation. Any revenue impact associated with this transition will be identified in a future filing related to the Company’s fuel clause operation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Current and Non-Current Deferred                  | March 31, | December 31, |
|---------------------------------------------------|-----------|--------------|
| Regulatory Assets and Liabilities                 | 2010      | 2009         |
| Millions                                          |      |         |
| Total Current Deferred Regulatory Assets (a)      | $12.7     | $15.5        |
| Total Non-Current Deferred Regulatory Assets      | 287.9     | 293.2        |
| Total Deferred Regulatory Assets                  | $300.6    | $308.7       |
|                                              |      |         |
| Total Current Deferred Regulatory Liabilities     | –   | –      |
| Total Non-Current Deferred Regulatory Liabilities | $47.2     | $47.1        |
| Total Deferred Regulatory Liabilities             | $47.2     | $47.1        |

| (a) | Current deferred regulatory assets are included in prepayments and other on the consolidated balance sheet. |
|-----|-------------------------------------------------------------------------------------------------------------|

| ALLETE’s Investment in ATC                  |   |
|---------------------------------------------------|--------|
| Millions                                          |   |
| Equity Investment Balance as of December 31, 2009 | $88.4  |
| Cash Investments                                  | 1.2    |
| Equity in ATC Earnings                            | 4.5    |
| Distributed ATC Earnings                          | (3.8)  |
| Equity Investment Balance as of March 31, 2010    | $90.3  |

|                                | Quarter Ended |
|-------------------------------------|---------------|
| ATC Summarized Financial Data       | March 31,     |
| Income Statement Data               | 2010          | 2009 |
| Millions                            |          |   |
| Revenue                             | $138.5        | $126.2 |
| Operating Expense                   | 62.8          | 57.0 |
| Other Expense                       | 20.6          | 18.3 |
| Net Income                          | $55.1         | $50.9 |
|                                |          |   |
| ALLETE’s Equity in Net Income | $4.5          | $4.2 |

| Issue Date        | Maturity       | Principal Amount | Coupon |
|-------------------|----------------|------------------|--------|
| February 17, 2010 | April 15, 2021 | $15 Million      | 4.85%  |
| February 17, 2010 | April 15, 2025 | $30 Million      | 5.10%  |
| February 17, 2010 | April 15, 2040 | $35 Million      | 6.00%  |

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|                                    |   | Quarter Ended |
|-----------------------------------------|--------|---------------|
|                                    |   | March 31,     |
|                                    |   |          | 2010 | 2009 |
| Millions                                |   |          |   |   |
| Loss on Emerging Technology Investments |   |          | $(0.4) | $(1.2) |
| AFUDC – Equity                    |   |          | 1.2 | 1.3 |
| Investment and Other Income             |   |          | 0.2 | 1.0 |
| Total Other Income                      |   |          | $1.0 | $1.1 |

|                          |   |    Quarter Ended         |
|-------------------------------|--------|------------------------------------|
|                          |   |      March 31, |
|                          |   |  2010                    | 2009 |
| Millions                      |   |                               |   |   |
| Current Tax Expense (Benefit) |   |                               |   |   |
| Federal (a)                   |   |                               | $7.2 | $(0.7) |
| State                         |   |                               | 0.9 | 1.0 |
| Total Current Tax Expense     |   |                               | 8.1 | 0.3 |
| Deferred Tax Expense          |   |                               |   |   |
| Federal (b)                   |   |                               | 9.8 | 9.3 |
| State                         |   |                               | 2.2 | 1.5 |
| Deferred Tax Credits          |   |                               | (0.2) | (0.3) |
| Total Deferred Tax Expense    |   |                               | 11.8 | 10.5 |
| Total Income Tax Expense      |   |                               | $19.9 | $10.8 |

| (a) | Due to the bonus depreciation provisions in the American Recovery and Reinvestment Act of 2009, we were in a net operating loss position for the year ended December 31, 2009. The loss will be utilized by carrying it back against prior years’ taxable income. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Included in 2010 is a one-time charge of $4.0 million as a result of the Patient Protection and Affordable Care Act eliminating the tax deduction for expenses that are reimbursed under Medicare Part D beginning January 1, 2013. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                 |   |     Quarter Ended          |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|
|                                                                                                                                 |   |       March 31,  |
| Other Comprehensive Income (Loss)                                                                                                    |   |        2010 |        2009 |
| Millions                                                                                                                             |   |                                      |   |
| Net Income                                                                                                                           |   | $22.8                                     | $16.9 |
| Other Comprehensive Income                                                                                                           |   |                                      |   |
|     Unrealized Gain (Loss) on Securities   Net of income taxes of $– and $(0.6)             |   | 0.1                                       | (1.0) |
|     Unrealized Gain on Derivatives  Net of income taxes of $– and $0.1                           |   | –                                   | 0.1 |
|     Defined Benefit Pension and Other Postretirement Plans   Net of income taxes of $0.2 and $0.1 |   | 0.3                                       | 0.3 |
| Total Other Comprehensive Income (Loss)                                                                                              |   | 0.4                                       | (0.6) |
| Total Comprehensive Income                                                                                                           |   | $23.2                                     | $16.3 |
| Less: Non-Controlling Interest in Subsidiaries                                                                                       |   | (0.2)                                     | – |
| Comprehensive Income Attributable to ALLETE                                                                                          |   | $23.4                                     | $16.3 |

|                                |   | 2010       |    |   |   | 2009       |    |
|-------------------------------------|--------|------------|---------|--------|--------|------------|---------|
| Reconciliation of Basic and Diluted |   | Dilutive   |    |   |   | Dilutive   |    |
| Earnings Per Share                  | Basic  | Securities | Diluted |   | Basic  | Securities | Diluted |
| Millions Except Per Share Amounts   |   |       |    |   |   |       |    |
| For the Quarter Ended March 31,     |   |       |    |   |   |       |    |
| Net Income Attributable to ALLETE   | $23.0  | –    | $23.0   |   | $16.9  | –    | $16.9   |
| Common Shares                       | 33.8   | –    | 33.8    |   | 30.9   | 0.1        | 31.0    |
| Earnings Per Share                  | $0.68  | –    | $0.68   |   | $0.55  | –    | $0.55   |

----

|                                       | Pension | OtherPostretirement |
|--------------------------------------------|---------|---------------------|
| Components of Net Periodic Benefit Expense | 2010    | 2009                | 2010 | 2009 |
| Millions                                   |    |                |   |   |
| For the Quarter Ended March 31,            |    |                |   |   |
| Service Cost                               | $1.5    | $1.4                | $1.2 | $1.0 |
| Interest Cost                              | 6.6     | 6.5                 | 2.7 | 2.5 |
| Expected Return on Plan Assets             | (8.4)   | (8.4)               | (2.4) | (2.1) |
| Amortization of Prior Service Costs        | 0.1     | 0.1                 | – | – |
| Amortization of Net Loss                   | 1.6     | 0.9                 | 1.2 | 0.6 |
| Amortization of Transition Obligation      | – | –             | 0.6 | 0.7 |
| Net Periodic Benefit Expense               | $1.4    | $0.5                | $3.3 | $2.7 |

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----

----

----

| ·   | Expand our renewable energy supply. |
|--------------------|-------------------------------------|

| ·   | Improve the efficiency of our coal-based generation facilities, as well as other process efficiencies. |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | Provide energy conservation initiatives for our customers and other demand side efforts. |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | Support research of technologies to reduce carbon emissions from generation facilities and support carbon sequestration efforts. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Achieve overall carbon emission reductions. |
|--------------------|---------------------------------------------|

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----

----

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

----

----

| Kilowatt-hours Sold                         |                  | Quantity    | %                           |
|---------------------------------------------|-----------------------|-------------|-----------------------------|
| Quarter Ended March 31,                     | 2010                  | 2009        | Variance                    | Variance |
| Millions                                    |                  |        |                        |   |
| Regulated Utility                           |                  |        |                        |   |
|                                        | Retail and Municipals |        |                        |   |   |
|                                        |                  | Residential | 357                         | 375 | (18) | (4.8) % |
|                                        |                  | Commercial  | 372                         | 379 | (7) | (1.8) % |
|                                        |                  | Industrial  | 1,429                       | 1,323 | 106 | 8.0 % |
|                                        |                  | Municipals  | 265                         | 265 | – | – % |
|                                        |                  |        | Total Retail and Municipals | 2,423 | 2,342 | 81 |  3.5 % |
|                                        | Other Power Suppliers | 803         | 916                         | (113) | (12.3) % |
| Total Regulated Utility Kilowatt-hours Sold | 3,226                 | 3,258       | (32)                        | (1.0) % |

----

| ALLETE Properties                     | 2010     | 2009    |
|---------------------------------------|----------|---------|
| Revenue and Sales Activity            | Quantity | Amount  | Quantity | Amount |
| Dollars in Millions                   |     |    |   |   |
| Revenue from Land Sales               |     |    |   |   |
| Acres (a)                             | –  | – | 19 | $2.2 |
| Contract Sales Price (b)              |     | – |   | 2.2 |
| Deferred Revenue                      |     | – |   | (0.6) |
| Revenue from Land Sales               |     | – |   | 1.6 |
| Other Revenue                         |     | $0.2    |   | 0.2 |
|  Total ALLETE Properties Revenue |     | $0.2    |   | $1.8 |

| (a) | Acreage amounts are shown on a gross basis, including wetlands and non-controlling interest. |
|-----|----------------------------------------------------------------------------------------------|

| (b) | Reflects total contract sales price on closed land transactions. Land sales are recorded using a percentage-of-completion method. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| ·   | Increased system flexibility to adapt to volatile business cycles and varied future industrial load scenarios; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | Reductions in the emission of GHGs (primarily carbon dioxide); and |
|--------------------|--------------------------------------------------------------------|

| ·   | Compliance with mandated renewable energy standards. |
|--------------------|------------------------------------------------------|

----

| Summary of Development Projects       |                                     |                                           |      Residential     |        Non-residential            |
|---------------------------------------|------------------------------------------|------------------------------------------------|------------------------------------------|-----------------------------------------------------------------|
| Land Available-for-Sale               |       Ownership |        Acres (a) |       Units (b) |          Sq. Ft. (b, c) |
| Current Development Projects          |                                     |                                           |                                     |                                                            |
| Town Center                           |     80%                   | 854                                            | 2,089                                    | 2,191,200                                                       |
| Palm Coast Park                       |    100%                        | 3,385                                          | 3,154                                    | 3,056,800                                                       |
| Total Current Development Projects    |                                     | 4,239                                          | 5,243                                    | 5,248,000                                                       |
|                                  |                                     |                                           |                                     |                                                            |
| Planned Development Project           |                                     |                                           |                                     |                                                            |
| Ormond Crossings                      |    100%                        | 2,924                                          | 2,950                                    | 3,215,000                                                       |
| Other                                 |                                     |                                           |                                     |                                                            |
| Lake Swamp Wetland Mitigation Project |    100%                        | 3,049                                          | (d)                                      | (d)                                                             |
|                                  |                                     |                                           |                                     |                                                            |
| Total of Development Projects         |                                     | 10,212                                         | 8,193                                    | 8,463,000                                                       |

| (a) | Acreage amounts are approximate and shown on a gross basis, including wetlands and non-controlling interest. |
|-----|--------------------------------------------------------------------------------------------------------------|

| (b) | Estimated and includes non-controlling interest. Density at build out may differ from these estimates. |
|-----|--------------------------------------------------------------------------------------------------------|

| (c) | Depending on the project, non-residential includes retail commercial, non-retail commercial, office, industrial, warehouse, storage and institutional. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The Lake Swamp wetland mitigation bank is a regionally significant wetlands mitigation bank that was permitted by the St. Johns River Water Management District in 2008 and by the U.S. Army Corps of Engineers in December 2009. Wetland mitigation credits will be used at Ormond Crossings, and will also be available-for-sale to developers of other projects that are located in the bank’s service area. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          | March 31, |    | December 31, |    |
|-----------------------------------------------|-----------|---------|--------------|---------|
|                                          | 2010      | %       | 2009         | %       |
| Millions                                      |      |    |         |    |
| ALLETE Equity                                 | $947.9    | 57      | $929.5       | 57      |
| Non-Controlling Interest                      | 9.3       | – | 9.5          | – |
| Long-Term Debt (Including Current Maturities) | 711.7     | 43      | 701.0        | 43      |
| Short-Term Debt                               | 1.7       | – | 1.9          | – |
|                                          | $1,670.6  | 100     | $1,641.9     | 100     |

| For the Quarter Ended March 31,                             | 2010   | 2009   |
|-------------------------------------------------------------|--------|--------|
| Millions                                                    |   |   |
| Cash and Cash Equivalents at Beginning of Period            | $25.7  | $102.0 |
| Cash Flows from (used for)                                  |   |   |
| Operating Activities                                        | 56.7   | 34.5   |
| Investing Activities                                        | (51.7) | (69.6) |
| Financing Activities                                        | 1.8    | 31.1   |
|     Change in Cash and Cash Equivalents | 6.8    | (4.0)  |
| Cash and Cash Equivalents at End of Period                  | $32.5  | $98.0  |

----

----

----

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

----

ITEM 4.  CONTROLS AND PROCEDURES

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

ITEM 1A.  RISK FACTORS

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

ITEM 4.  RESERVED

ITEM 5.  OTHER INFORMATION

----

ITEM 6.  EXHIBITS

|   |   4 | Thirty-first Supplemental Indenture, dated as of February 1, 2010, between ALLETE and The Bank of New York Mellon and Douglas J. MacInnes, as Trustees. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10(a) | Amendment to the ALLETE Director Stock Plan Effective May 1, 2010. |
|-------|--------------------------------------------------------------------|

| 10(b) | ALLETE Non-Management Director Compensation Summary Effective May 1, 2010. |
|-------|----------------------------------------------------------------------------|

| 31(a) | Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|-------|----------------------------------------------------------------------------------------------------------------------------------|

| 31(b) | Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|-------|----------------------------------------------------------------------------------------------------------------------------------|

|   |  32 | Section 1350 Certification of Periodic Report by the Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  99 | ALLETE News Release dated April 30, 2010, announcing 2010 first quarter earnings. (This exhibit has been furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.) |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | SIGNATURES |
|--------|------------|

|           |   | ALLETE, INC.                                           |
|----------------|--------|--------------------------------------------------------|
|           |   |                                                   |
|           |   |                                                   |
|           |   |                                                   |
|           |   |                                                   |
| April 30, 2010 |   | /s/ Mark A. Schober                                    |
|           |   | Mark A. Schober                                        |
|           |   | Senior Vice President and Chief Financial Officer      |
|           |   |                                                   |
|           |   |                                                   |
|           |   |                                                   |
|           |   |                                                   |
|           |   |                                                   |
| April 30, 2010 |   | /s/ Steven Q. DeVinck                                  |
|           |   | Steven Q. DeVinck                                      |
|           |   | Controller and Vice President – Business Support |

----