Minnesota PUC approves Minnesota Power’s proposed rate reduction

The Minnesota Public Utilities Commission approved a request by Minnesota Power to reduce the interim rate customers are paying.

Starting May 1, the previously approved interim increase of 5.8 percent was reduced to 4.1 percent. The request was made by Minnesota Power on April 23 to help ease the financial challenges the COVID-19 pandemic is having on customers and communities.

“We appreciate the Commissioners’ willingness to consider and approve this portion of our request so quickly,” said Bethany Owen, president and CEO of ALLETE, which owns Minnesota Power. “This decision enables us to provide some much-needed relief to our customers during these difficult times as we continue to focus on delivering the safe and reliable energy so important to our communities, homes, hospitals, and businesses.”

The Minnesota PUC is scheduled to decide in June on other aspects of Minnesota Power’s proposal, including, but not limited to, a refund of interim rates for all customers of about $12 million and delaying any future rate proposal until at least March 1, 2021.

Energy CENTS Coalition, Citizens Utility Board, and IBEW Local 31 have all come out in support of Minnesota Power’s proposals.

The MPUC is accepting public comments on the proposed resolution of Minnesota Power’s rate review through May 11. A hearing is expected in early June.