By Dave Thompson
Bismarck, ND – Staff at the North Dakota Public Service Commission say Montana-Dakota Utilities is making too much money off electricity -- and should cut its rates.
The P-S-C has started the process to look into the rates Staff is recommending an 11-percent rate reduction.
M-D-U spokesman Dan Sharp says it's true that the utility has earned more than its allowed rate of return.
"But it's been due to our taking advantage of 'pool sales' or sales of electricity to other customers. Those markets have probably not dried up, but they're far less than they were in the last two or three years, and so we expect our earnings to return to a more normal levels. And we don't think it's a good idea to decrease our prices now and risk having to raise them a year or two from now."
Sharp says consumers weren't hurt by the higher profits.
"People are paying the same rate they did for electricity in 1987. In fact, the last time we had a rate increase, Ronald Reagan was President. That's how long ago it's been. And so our customers aren't paying any more for electricity. All we've done is been able to sell some electricity to other countries, and that's improved our profit picture."
A formal hearing is scheduled for February 25th.