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For Immediate Release:
January 24, 2023
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Minnesota Public Utilities Commission
Contact: Cori Rude-Young, 651-201-2241
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Public Utilities Commission reduces Minnesota Power’s proposed rate increase by half
St. Paul, Minnesota — On Monday, the Minnesota Public Utilities Commission (Commission) reduced and approved Minnesota Power’s proposal to increase electric rates. The Commission approved a rate increase of approximately $58 million, or 9.5%. Minnesota Power proposed an increase in rates of $108.3 million, or 17.58%.
In establishing the new rate, the Commission made several decisions, including:
- Established a return on equity of 9.65% for Minnesota Power
- Removed costs related to power plants that are being retired
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Mitigated increases to monthly basic charges for customers
“A key role of the Commission is to ensure the reasonableness of utility rates,” said Commissioner Joseph Sullivan. ”After extensive testimony and deliberating for eight hours, the Commission reduced Minnesota Power’s increase request by half, while making sure the company has the resources and tools they need. This decision protects consumers’ wallets while providing reliable electrical service.”
Once the financial impact of Monday’s decisions is calculated, if final rates are lower than the interim rates, customers would receive a refund of the difference, with interest. Learn more on rate cases, and the Commission’s role here.
About
The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy: electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate, and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional, and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc.
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