MDU electric customers will see a credit on their bills in July and August.
That’s because the company earned more than it was allowed to under the settlement of an electric rate case. That settlement with the North Dakota Public Service Commission says if the utility has a rate of return above the 10.75 percent allowed, it would have to share that extra profit with customers. And it means average MDU customers will see a $16.50 cent credit spread out over the July and August bills.
"It seems like an effective tool for the Commission and the companies to use to make sure the utility and its investors are allowed to earn a fair return on their investment, while keeping rates as low as possible," said Commissioner Julie Fedorchak. "For customers, it keeps rates fair and reasonable."
PSC Chairman Brian Kalk says utilities need to have the money to satisfy shareholders – and make investments.
"There also has to be a collar in place," said Kalk. "If the number is 10 and all of a sudden the company is making 20, that's way more than envisioned. So you put this collar in place to protect the ratepayers."
Kalk says this agreement expires at the end of the year – and he hopes to meet with MDU to continue it.
