Minnesota Power’s agreement with stakeholders on lower rate increase approved

The Minnesota Public Utilities Commission (MPCU) approved a settlement agreement on Minnesota Power’s 2024 electrical rate proposal on Thursday, October 24. This settlement will lower rates for all customers starting in early 2025.

“The MPUC approved a final rate increase of about 4.9% over 2023 rates for residential and small
business customers, or about $5 per month for the average residential customer, and about 4.4%
over 2023 rates for industrial and large commercial customers,” explained Amy Rutledge, Director of Corporate Communications. “The final rate is lower than the interim rate increase of 8.6% that went into effect in January of this year, which means residential customers will see a small decrease in their monthly bills.”

Rutledge continued that that the differene between the interim rate and final rate will be refunded to all customers with interest.

The approval will also set Minnesota Power’s return on equity at 9.78%.

“We greatly appreciate the hard work of our team and our stakeholders, and the commission’s
recognition that this rate settlement agreement is the best outcome, with benefits for our customers,
our communities, the climate and our company,” said ALLETE Chair, President and CEO Bethany
Owen. “It takes all of us working together—regulators, lawmakers, our customers, our communities,
and many more—to achieve a clean-energy transition that’s truly sustainable for everyone. This
agreement strikes a balance, with beneficial outcomes for customers while keeping Minnesota
Power on track as it works toward the state’s ambitious climate goals.”

Minnesota Power has provided additional information on the rate proposal here.