EXHIBIT 99
[ALLETE LOGO]

                                                FOR RELEASE:   January 4, 2005
                                                CONTACT:       Eric Olson
                                                               218-723-3947
                                                               eolson@allete.com

                                                INVESTOR       Tim Thorp
                                                CONTACT:       218-723-3953
                                                               tthorp@allete.com
NEWS

          ALLETE, INC. ANNOUNCES PROPOSED TRANSFER OF KENDALL ENERGY
          ----------------------------------------------------------
                                  AGREEMENTS
                                  ----------

DULUTH, Minn.--ALLETE, Inc. (NYSE: ALE) announced today that its subsidiary,
Rainy River Energy Corporation, has entered into an agreement to assign its
power purchase agreement with LSP-Kendall Energy, LLC, the owner of an energy
generation facility located in Kendall County, Ill., to Constellation Energy
Commodities Group, Inc., a subsidiary of Constellation Energy Group, Inc. (NYSE:
CEG). Under terms of the proposed agreement ALLETE's subsidiary will pay
Constellation Energy $73 million in cash (approximately $47 million after taxes)
to assume the power purchase agreement, which is in effect through
mid-September, 2017. The proposed transaction is subject to the approvals of
LSP-Kendall Energy, LLC and its project lenders, and the Federal Energy
Regulatory Commission. Pending these approvals, the transaction is scheduled for
closing on April 1, 2005.

In 1999 Rainy River Energy Corporation entered into a long-term agreement to
purchase approximately 275 megawatts of nonregulated generation capacity (non
rate-base generation sold at market-based rates to the wholesale market) from
the Kendall County facility. Subsequent to that agreement, Rainy River sold
approximately 130 megawatts of this capacity under long-term contracts. Those
contracts will also be transferred to Constellation Energy at closing. The
Kendall County facility, located just south of Chicago, became operational in
May, 2002.

"This proposed transaction is consistent with our stated goal of eliminating the
significant ongoing losses resulting from our long-term agreement with the
Kendall County facility," said Don Shippar, ALLETE President and CEO.

ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE
provides energy services in the upper Midwest and has significant real estate
holdings in Florida. More information about the company is available on ALLETE's
Web site at www.allete.com.

THE STATEMENTS CONTAINED IN THIS RELEASE AND STATEMENTS THAT ALLETE MAY MAKE
ORALLY IN CONNECTION WITH THIS RELEASE THAT ARE NOT HISTORICAL FACTS, ARE
FORWARD-LOOKING STATEMENTS. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
PROJECTED IN THE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS
INVOLVE RISKS AND UNCERTAINTIES AND INVESTORS ARE DIRECTED TO THE RISKS
DISCUSSED IN DOCUMENTS FILED BY ALLETE WITH THE SECURITIES AND EXCHANGE
COMMISSION.

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