Minnesota Power reaches rate increase agreement
(WDIO)
Minnesota Power has reached an agreement with the Minnesota Department of Commerce, the Minnesota Minnesota Attorney General’s Office, and Large Power Intervenors to increase rates.
If approved by the Minnesota Public Utilities Commission, rates will increase 4.9% for residential and small business customers and about 4.4% for industrial and large commercial customers.
This plan would also set Minnesota Power’s return on equity at 9.78%, allowing for cost recovery outside a rate case for certain environmental costs and capacity purchases.
“I’m grateful for the hard work on this by all of the parties, who agreed that this settlement is the right path forward for everyone,” said ALLETE Chair, President and CEO Bethany Owen. “This agreement recognizes the importance of considering the needs of our customers and communities. Taken as a whole, it results in a lower rate increase for customers than we originally requested while also allowing Minnesota Power to make the investments and hire the workforce needed to ensure we can meet the state’s ambitious climate goals.”
The MPUC approved an interim rate increase of 8.6%, or about $8 per month for the average residential customer over 2023 rates, that went into effect January 1, 2024.
Minnesota Power says the difference between the interim rate and final rate, which is about a $5 per month increase for the average residential customer over 2023 rates, will be refunded to customers, with interest, through bill credits after the final rates are approved.