Minnesota Power Requests 18% Rate Increase
Minnesota Power Files Request for Rate Change to Support Sustainable Energy Future
DULUTH, Minn. — Minnesota Power announced Monday it’s filing a request with the Minnesota Public Utilities Commission (MPUC) to increase its annual operating revenue by $108 million and adjust rates for its retail electric customers.
The company says the approximately 18% increase reflects changes in revenue and expenses related to Minnesota Power’s ongoing EnergyForward clean energy transition, evolving customer demand, business operations, and regulatory requirements since the company’s last completed rate review submitted in 2016.
In the past 25 years, Minnesota Power has completed three full-rate reviews.
“The energy industry of the 2020s looks far different than it did five years ago as our customers’ expectations for clean energy and high-value service are increasing,” said Bethany Owen, ALLETE
Chair, President and CEO. “Through EnergyForward, Minnesota Power is meeting those expectations by delivering a resilient, reliable, and sustainable supply of 50% renewable energy that is competitively priced. We are proud to be halfway to our goal of providing 100% carbon-free energy by 2050, and we look forward to continuing our close work with our customers and stakeholders to complete this transition.”
Minnesota Power achieved a milestone in late 2020, becoming the first Minnesota utility to deliver more than 50% of its energy supply from renewable sources and closing or transitioning seven of nine of its coal units.
In its Integrated Resource Plan submitted to state regulators on Feb. 1, 2021, Minnesota Power announced its goal to achieve a 70% renewable energy mix by 2030, an 80% carbon reduction and end to all coal operations by 2035, and reach a 100% carbon-free energy supply by 2050.
The company says it’s making additional investments in a more resilient grid to maintain energy delivery as the number of more extreme weather events increases.