PUC Approves More Than $120 Million in Customer Credits for Minnesota Power Customers
St. Paul, MN — The Minnesota Public Utilities Commission (Commission) approved two major credit programs that will provide more than $120 million in bill relief to Minnesota Power customers. These actions ensure that the value of Minnesota Power’s assets and commitments made during the ALLETE acquisition flow directly back to customers.
Land Sales Credit: Minnesota Power will credit $72.5 million in net proceeds from the sale of hydropower reservoir lands. Customers will see the credit applied in two monthly installments on their January and February 2027 bills. For an average residential customer, the total credit is estimated at about $109 for the two months, delivering meaningful near‑term bill relief.
Acquisition Bill Credit: Under conditions established in the Commission’s approval of the ALLETE acquisition, Minnesota Power will distribute $50 million in bill credits beginning in 2027. The Company will return $10 million per year over five years. The average residential customer is expected to receive about $15 credit on their March 2027 bill and again each January from 2028 through 2031. Credits will automatically apply to customers taking service at the time they are issued.
“When the Commission approved the acquisition, we made it clear that it must deliver meaningful benefits to customers. Today’s decision follows through on that commitment,” said Commission Chair Katie Sieben. “More than $120 million will go to Minnesota Power customers, reflecting our mission to ensure that bills are as low as practical.”
Together, these credits ensure that customers receive the benefits of both the sale of unneeded utility property and $50 million in bill credits required as part of the acquisition. The programs provide immediate and ongoing bill relief, consistent with the Commission’s mission to maintain affordability, transparency, and customer protection.
Next Steps
Minnesota Power will apply the land sales credit over two months in January and February 2027. The first of five annual $10 million bill credits will be issued in March of 2027. Customers do not need to take any action to receive these credits.
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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