Minnesota Power refunding $12M to customers during rate review
Following approval from the Minnesota Public Utilities Commission (MPUC), Minnesota Power intends to refund $12 million to its customers as a means of assistance during the COVID-19 pandemic.
Minnesota Power had put in a rate request in November 2019. In April, the company pushed for a resolution to that rate review, citing the ongoing economic and health uncertainties related to the crisis. As a result of the approval, Minnesota Power will refund the interim rates collected between Jan. 1 and April 30, 2020. The company’s interim rate has also been reduced.
The final rate increase settled at 4.1 percent — down from the 5.8 percent interim. This is significantly below the 10.59 percent increase the company had originally proposed last year to recover operating and regulatory costs, as well as to address changing sales and expiring contracts. For the average residential customer, the decision should bring about $20 in refunds, while businesses could expect around $70.
“We hope the lower rates and refunds we proposed and the Commission approved today will help our customers weather the financial strain caused by COVID-19. These are difficult times for everyone, and we appreciate the support of many stakeholders and the Commission’s prompt action to approve our proposal,” ALLETE President and CEO Bethany Owen said. Minnesota Power is a utility division of ALLETE. “Delivering safe, reliable, and affordable energy has never been more important to our customers and communities than it is right now.”
Refunds may differ depending on energy usage. The timing of their receipt may also vary, depending on written orders from MPUC.
Further, Minnesota Power was approved to recover income lost from the expiration of a 10-year wholesale market contract. That contract had reduced customers’ monthly bills thanks to excess energy sold. It expired on April 30.
