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MDU electric customers will not see added charges for a natural gas turbine

MDU electric customers will NOT pay any extra for the new natural gas turbine at the Heskett Plant, north of Mandan.

The 88 megawatt plant cost $76 million to build – which MDU says was 11 percent under budget.

MDU had originally proposed a three dollar charge per month on customers’ bills. It reduced that to two dollars, once it decided it would not charge for a pipeline project to bring the natural gas to that plant.

Public Service Commissioner Julie Fedorchak says PSC staff worked with the utility on a settlement agreement.

"They aren't going to require any revenues from customers," said Fedorchak. "And they're goin g to cover those costs with existing revenues, if possible. There is no rate adjustment with this tariff at this time."

Fedorchak says MDU may earn up to a 10.75 percent return on investment. She says if MDU doesn’t meet that rate of return, it can then ask the PSC to allow a charge for the natural gas turbine. But Fedorchak says if MDU earns more than that, it will issue refunds to customers.

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