Minnesota Power Requesting 18% Rate Increase to Offset Clean Energy Investments

An interim rate increase of 14% will start January 1st lasting until the Commission approves 18%.

DULUTH, Minn.- Minnesota Power is filing a request with the Minnesota Public Utilities Commission to increase its annual operating revenue by $108 million.

This would mean an 18% increase or about $15 dollars more on customers’ monthly bills.

But as the commission takes up to a year to approve their request, the company asked for an interim rate increase of 14% or an extra $12 a month.

This will take effect in January and remain until a decision is made on the final rates.

If those final rates are lower, the company says they will refund customers the difference.

This is due to investments they made in their “EnergyForward” clean energy transition since 2016.

According to Corporate Communications Manager Amy Rutledge, Minnesota Power withdrew a rate increase request back in 2019 due to the economic challenges of the pandemic.

‘This transition is no small feat and it is going to require significant investments,” Rutledge said.

“This is something that we’re seeing nationwide,” she said. “That as an industry we are moving forward and bringing more carbon fire energy into the, into our system and into our region.”

In late 2020, Minnesota Power became the first utility in the state to deliver more than 50 percent of its energy from renewable sources, closing or transitioning 7 of 9 of its coal units.