{"id":725480,"date":"2023-01-24T16:16:10","date_gmt":"2023-01-24T21:16:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/minnesota-public-utilities-commission-sets-new-rates-for-minnesota-power\/"},"modified":"2023-01-24T16:16:10","modified_gmt":"2023-01-24T21:16:10","slug":"minnesota-public-utilities-commission-sets-new-rates-for-minnesota-power","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/minnesota-public-utilities-commission-sets-new-rates-for-minnesota-power\/","title":{"rendered":"Minnesota Public Utilities Commission Sets New Rates for Minnesota Power"},"content":{"rendered":"

<\/p>\n

Minnesota Public Utilities Commission Sets New Rates for Minnesota Power<\/b><\/p>\n

DULUTH, Minn.–(BUSINESS WIRE<\/a>)–
\nThe Minnesota Public Utilities Commission (MPUC) on Monday approved a rate increase of approximately $59 million, or approximately 9%, that Minnesota Power, a utility division of ALLETE Inc. (NYSE: ALE), is allowed to recover through the base rates that it charges to residential and business electric customers. The commission also authorized a return on equity of 9.65% for the company. The decision is subject to a final written order and reconsideration.\n<\/p>\n

\nUnder the MPUC decision, rates will increase by approximately 9% for all customer classes. The average residential customer\u2019s monthly bill will increase by approximately 2% above the interim rate they currently pay. The 9% increase will also apply to business and industrial customers, whose interim rate was 14%. The applicable difference between final and interim rates will be refunded to business and industrial customers. Final rates are expected to go into effect this summer.\n<\/p>\n

\nAs a regulated utility, Minnesota Power must receive approval from the MPUC whenever changes in revenue or expenses require adjusting its rates. In the past 25 years, Minnesota Power has completed only three full rate reviews, and its residential customers\u2019 monthly bills are below the national average while they receive the highest percentage of renewable energy in the state. The company\u2019s last rate review filed in 2019 was withdrawn in response to the COVID-19 pandemic and its impacts on customers and the region\u2019s economy.\n<\/p>\n

\nThe company has taken a number of steps to mitigate rate impacts for customers, including requesting a lower interim rate for residential customers and adding new programs and bolstering existing ones that provide bill discounts for low-income customers. Due to those efforts, even if the company\u2019s full request had been approved, the monthly bills for those customers would not have increased.\n<\/p>\n

\nThe company filed its rate request in November 2021, seeking to increase its annual operating revenue by $108 million or approximately 18%.\n<\/p>\n

\n\u201cI\u2019m proud of our Minnesota Power team and all our company has done to lead our state\u2019s clean-energy transformation while providing safe and reliable power and keeping residential customers\u2019 monthly bills below the national average. Yesterday\u2019s decision, however, does not give us the resources and tools we need to do all of this,\u201d said Bethany Owen, ALLETE chair, president and CEO. \u201cAs utilities are asked to do more and even faster, we expect rate review requests to become more frequent going forward. We plan to file another rate request later this year that will reflect the revenue requirements that Minnesota Power needs in order to advance its state-leading EnergyForward<\/i><\/b> strategy.\u201d\n<\/p>\n

\nThe company has managed to keep 2022 operations and maintenance expenses lower than its 2010 operations and maintenance expenses, while inflation alone has increased costs nearly 2% annually over the same period. Minnesota Power\u2019s residential electric rates have not kept pace with general inflation over the past 10 years, and have decreased by 0.2% annually on an inflation-adjusted basis.\n<\/p>\n

\nMinnesota Power also is providing customers greater control over their daily energy decisions and monthly bills through new tools that empower customers to reduce how much energy they use; programs to choose their sources of energy; and rate options to customize what they pay for heating, cooling and vehicle charging.\n<\/p>\n

\nRoutine rate reviews are just one part of Minnesota\u2019s regulatory framework. In November 2022, the MPUC approved Minnesota Power\u2019s Integrated Resource Plan<\/a>, the roadmap for the company\u2019s EnergyForward<\/b><\/i> vision to provide 100% carbon-free energy by 2050 while maintaining safe, reliable and affordable electric service to its customers.\n<\/p>\n

\nMinnesota Power provides electric service within a 26,000-square-mile area in northeastern Minnesota, supporting comfort, security and quality of life for 145,000 customers, 14 municipalities and some of the largest industrial customers in the United States. More information can be found at www.mnpower.com<\/a>.\n<\/p>\n

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission. ALE-CORP<\/i><\/p>\n

\"\"<\/p>\n

View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230124006070\/en\/<\/a><\/span><\/p>\n

\nAmy Rutledge
\n
Director – Corporate Communications
\n
Minnesota Power\/ALLETE
\n
218-723-7400
\n
arutledge@mnpower.com<\/a><\/p>\n

KEYWORDS:<\/b> United States North America Minnesota<\/p>\n

INDUSTRY KEYWORDS:<\/b> Alternative Energy Energy Utilities<\/p>\n

MEDIA:<\/b><\/p>\n\n\n\n\n
Logo<\/b><\/font><\/td>\n<\/tr>\n
\"Logo\"<\/td>\n<\/tr>\n
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Minnesota Public Utilities Commission Sets New Rates for Minnesota Power DULUTH, Minn.–(BUSINESS WIRE)– The Minnesota Public Utilities Commission (MPUC) on Monday approved a rate increase of approximately $59 million, or approximately 9%, that Minnesota Power, a utility division of ALLETE Inc. (NYSE: ALE), is allowed to recover through the base rates that it charges to residential and business electric customers. The commission also authorized a return on equity of 9.65% for the company. The decision is subject to a final written order and reconsideration. Under the MPUC decision, rates will increase by approximately 9% for all customer classes. The average residential customer\u2019s monthly bill will increase by approximately 2% above the interim rate they currently pay. The 9% increase will … <\/p>\n

Continue reading “Minnesota Public Utilities Commission Sets New Rates for Minnesota Power”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-725480","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nMinnesota Public Utilities Commission Sets New Rates for Minnesota Power - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/minnesota-public-utilities-commission-sets-new-rates-for-minnesota-power\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Minnesota Public Utilities Commission Sets New Rates for Minnesota Power - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Minnesota Public Utilities Commission Sets New Rates for Minnesota Power DULUTH, Minn.–(BUSINESS WIRE)– The Minnesota Public Utilities Commission (MPUC) on Monday approved a rate increase of approximately $59 million, or approximately 9%, that Minnesota Power, a utility division of ALLETE Inc. (NYSE: ALE), is allowed to recover through the base rates that it charges to residential and business electric customers. The commission also authorized a return on equity of 9.65% for the company. The decision is subject to a final written order and reconsideration. Under the MPUC decision, rates will increase by approximately 9% for all customer classes. The average residential customer\u2019s monthly bill will increase by approximately 2% above the interim rate they currently pay. 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