North Dakota regulators approve short-term electric rate increase for MDU

The North Dakota Public Service Commission on Wednesday approved a short-term increase in electric rates for customers of Montana-Dakota Utilities while the agency considers a larger increase. 

Under the interim rate increase, a typical residential customer will see an increase of about $12.90 per month, or 12.3% over current rates. The rates kick in Tuesday. MDU’s revenue increases by $26.3 million annually with the change.

Commissioner Jill Kringstad said MDU customers should note that the 12.3% increase is not on their entire bill, but only to the basic service charge, the demand charge, and the energy charge — not to other riders customers may see on their bill. 

Commissioner Sheri Haugen-Hoffart noted that state law says the commission shall approve interim rate increase requests to take effect no more than 60 days after the initial filing date and without a public hearing 

Kringstand added that utility regulators in some states have the ability to deny interim rate increases, but that is not the case in North Dakota.

The company filed for a 14.5% rate increase on June 30. If approved, it would increase revenues by $34.5 million annually. 

Haugen-Hoffart said that hearings in the rate case will likely not take place until 2027. 

MDU says the proposed rate increase will cover electric infrastructure improvements and address rising business costs. The company last filed for an increase in 2022.

Travis Jacobson, vice president for regulatory affairs for MDU, told North Dakota lawmakers last month that the rate increase request is not related to data centers it serves or data center projects. 

Reach North Dakota Monitor deputy editor Jeff Beach at [email protected]