UtilitiesTuesday, November 3
Minnesota Power asks for a 17.8% rate increase that would add about $24 a month to the average home bill
The Daily Duluth team
If you're a Minnesota Power customer, the company has asked state regulators to approve a 17.8% rate increase. The average residential bill would rise about $24 a month if the Minnesota Public Utilities Commission approves the full request. It serves 150,000 customers in Northeast Minnesota, and its last request was in 2023.
The interim increase would be smaller than the full request
| Full request | Measure | Interim, Jan. 2027 |
|---|---|---|
| 17.8% | Rate increase | 15.0% |
| $24 | Added per month, average home | $15 |
Sources: WDIO.com, Fox21Online
The commission will set an interim 15% increase starting in January 2027, about $15 a month for homes. Bill credits will offset about 70% of that interim bump in 2027, and any overpayment gets refunded with interest if the final rate is lower. Fox21Online says the credits come from land sold near the company's hydro reservoirs.
Bill credits would cover about 70% of the 2027 interim increase
70%Share of the 2027 interim increase offset by bill credits
Sources: WDIO.com, Fox21Online
View as table
| Value | |
|---|---|
| Share of the 2027 interim increase offset by bill credits | 70% |
- Review time: a year or more, with public meetings and comment
- Costs behind it: operations, workforce, grid upgrades, renewables, inflation
- Eighth lowest: Minnesota's residential electric bills nationally, the company says
Two-thirds of its sales go to large industrial customers, and the company says idled mines hurt sales but not grid costs. It also says the request isn't tied to Google's Hermantown data center. Northern News Now shares the company's response: Google has agreed to pay all costs necessary to power it.
Sources: WDIO.com, Fox21Online, Northern News Now