Minnesota PUC approves Minnesota Power’s interim rate request

The Minnesota Public Utilities Commission (MPUC) approved Minnesota Power’s interim rate request for 2022.

Starting Jan. 1, 2022, rates increase by approximately 7 percent for residential customers and approximately 14 percent for all other customers, effective Jan. 1, 2022. In different terms, the average residential customer will see rates go up about $5.89.

The interim rates will remain in effect until final rates are decided by the MPUC, likely by early 2023.

Minnesota Power’s last rate review was submitted in 2016. In the past 25 years, the company has completed only three full rate reviews.

After initially requesting an interim rate increase of approximately 14 percent for all customers, Minnesota Power worked with consumer advocate Energy CENTS Coalition (ECC) to reduce the interim rate increase for residential customers, with the remainder to be considered during
the overall rate review.

Minnesota Power recognizes that residential customers in the region continue to face unique circumstances stemming from the impacts of the COVID-19 pandemic. Those circumstances include customers who are still working to reduce their past due balances incurred during the moratorium on disconnections.

“We appreciate the MPUC’s approval of interim rates and the efforts of stakeholders to reach a
compromise on a reduced interim rate for our residential customers,” Chief Operating Officer Josh Skelton said. “We will continue to work closely with all stakeholders throughout this rate review process as we prepare for the next phase of our EnergyForward transition to a carbon-free energy supply while maintaining safe, reliable, and affordable delivery of our essential services. For Minnesota Power, it is important that the outcome of this rate review strengthens our ability to make the smartest investments to achieve these goals.”

In 2020, Minnesota Power became the first Minnesota utility to deliver more than 50 percent of its energy supply from renewable sources. It has closed or transitioned seven of nine of its coal units. The company aims to achieve a 70 percent renewable energy mix by 2030. By 2035, the goal is to have an 80 percent carbon reduction and end all coal operations, and by 2050 the company expects to have 100 percent carbon-free energy.