Utility Allete to post $4 million health care charge in first quarter

Allete to post $4M health care charge in 1Q

COLUMBUS, Ohio — Utility company Allete said it will record a charge of about $4 million in the first quarter because of the recent federal health care overhaul.

The company, based in Duluth, Minn., said in a regulatory filing Tuesday that the charge will total 12 cents per share.

Allete and other companies currently receive a government subsidy to keep prescription drug benefits for retirees. They have been able to deduct their expenses, but that ends in 2013 under the recently passed legislation.

Companies are announcing the charges now because accounting rules dictate they must book them during the period a new law is enacted.

Allete said it expects to make $73 million to $83 million, or $2.05 to $2.35 per share, for the quarter, excluding the health care charge.

Allete provides electric, natural gas and water services in northeast Minnesota and northwest Wisconsin. It also has coal mining operations in North Dakota and real estate investment in Florida.