Minnesota Power proposes overall 18% rate increase, could raise customers’ bills
DULUTH, MN. (CBS 3) - Minnesota Power is proposing an overall 18% rate increase that could leave residential customers and small businesses seeing higher electric bills.
Minnesota Power filed a request with the Minnesota Public Utilities Commission (MPUC) Monday.
According to company spokespeople, the approximately 18% proposed rate increase would raise the company’s operating revenue by $108 million.
According to Minnesota Power spokespeople, this proposal would increase a typical residential customer with a monthly usage of 701 kilowatthours bill by about $15 per month.
A small-business customer with a monthly using 2,581 kilowatt-hours would see an increase of $55 per month.
The proposal is necessary “changes in revenue and expenses related to Minnesota Power’s ongoing EnergyForward clean energy transition, evolving customer demand, business operations and regulatory requirements since the company’s last completed rate review submitted in 2016,” Minnesota Power spokespeople said in a statement Monday.
“The request we submitted today will help achieve our sustainability commitments to the climate, our customers and the communities we are grateful to serve,” Bethany Owen, ALLETE Chair, President and CEO said. “We are continuing to pursue aggressive carbon-reduction goals, working to keep rates as low as possible for families and businesses, and advocating for a regional economy that supports the well-being and quality of life for everyone.”
Monday’s filing is the first step toward the MPUC’s full regulatory review.
According to Minnesota Power, the MPUC will receive feedback from state agencies, interested parties and customers over the next year before making a final decision on the company’s rate request.
Minnesota Power’s last completed rate review was filed in 2016.
In 2019, Minnesota Power withdrew its request for a rate increase due to the COVID-19 pandemic and its impacts on residents and the economy.
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