MPUC sets new energy rate for Minnesota Power

Minnesota Power’s proposed increase to electric rates was approved but cut in half.

The Minnesota Public Utilities Commission approved a rate increase of approximately $58 million, or 9.5%. Minnesota Power originally proposed an increase in rates of $108.3 million, or 17.58%.

In establishing the new rate, the PUC says they established a return on equity of 9.65% for Minnesota Power, removed costs related to power plants that are being retired, and mitigated increases to monthly basic charges for customers.

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 about the rate cases here.