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Comment open on rate rise

Minnesota Power seeks to increase electric rates by more than 18 percent, adding approximately $180 per year in electricity bills for the average household. The Minnesota Public Utilities Commission holds ultimate authority in determining rates, and now requests input from the public on Minnesota Power’s proposal.

The nonprofit Citizens Utility Board, the MN Department of Commerce, the Office of the Attorney General and others are pushing back on Minnesota Power’s proposal in a proceeding currently before an Administrative Law Judge.

“This was an unreasonable rate increase even before inflation was a major issue in our lives,” said Bret Pence, Greater Minnesota Director of Minnesota Interfaith Power & Light and resident of Duluth. “Minnesota Power is already directly passing along the higher costs of fossil fuel generation to its residential ratepayers on their monthly electric bills. Now they want to be compensated for millions in imprudent spending, and receive a higher profit margin from ratepayers. That is both unreasonable and unjust.”

Already, 12% of households served by Minnesota Power are behind on their electricity bills. In December, citing numerous financial pressures on Minnesotans, the PUC found that an interim rate increase for customers should be only half that paid by other customer classes.

Minnesota Power is requesting the rate increase primarily because electricity demand from its large industrial customers dropped – and, with it, the company’s revenues. Residential electricity sales, on the other hand, have increased as people have stayed home more during the past two years.

Any member of the public can comment on the proposed rate hike.

• In writing: to [email protected] or the MN Public Utilities Commission, 121 7th Place East, Suite 350, St. Paul, MN 55101

• Orally at an in-person or virtual hearing:

July 19, 2 or 6 p.m.

July 20, 2 p.m. or 6 p.m. at the AAD Shrine Meeting & Event Center in Hermantown.