Decision starts extensive public process to evaluate Minnesota Power’s request
Recently the Minnesota Public Utilities Commission (MPUC) approved interim rates for Minnesota Power customers in the first step of a longer process to evaluate Minnesota Power’s most recent request for a rate review.
The decision will increase rates by 5.8 percent for all customer classes, effective Jan. 1, 2020. Under the change, the average residential customer will pay an additional $4.50 per month. Interim rates will remain in effect until final rates are decided by the MPUC.
Minnesota Power, a utility division of ALLETE (NYSE: ALE), filed a rate review on Nov. 1 with state regulators seeking to increase its annual operating revenue by $65.9 million to continue its commitment to deliver safe, reliable energy from increasingly cleaner sources of energy. The rate request addresses changes in customer demand, increasing operating expenses, and costs associated with regulatory obligations.
As a regulated electric utility, Minnesota Power must receive approval from the MPUC whenever changes in revenue and expenses require adjusting its rates. State law directs the MPUC to grant the interim rates because the state regulatory process may last as long as 12-18 months. Over the next year, the MPUC will receive feedback from state agencies and interested parties before making a decision on the rate request, and an administrative law judge will hold public hearings to provide customers with an opportunity to offer public comment.
Minnesota Power provides electric service within a 26,000-squaremile area in northeastern Minnesota, supporting comfort, security, and quality of life for 145,000 customers, 15 municipalities, and some of the largest industrial customers in the United States. More information can be found at www.mnpower.com.
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