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MDU Rate Increase Approved At Reduced Level

After nearly 8-months of hearings and discussion the Public Service Commission has approved a rate increase for Montana Dakota Utilities – although not the level proposed by MDU. Commissioner Julie Fedorchak says MDU had initially applied for a 6-point-6 percent rate increase. At that level MDU would raise $13-point-4 Million dollars to cover increased investments in generation transmission and distribution for the region. Fedorchak says AARP-North Dakota raised questions about the rate hike and was allowed to intervene. She says the group provided input through the process and helped shape the final settlement agreement…

“…That would call for an actual rate increase of $7.5-Million, or 3.7%. So it’s $6-Million less than what was originally asked. We did have a public hearing on that settlement agreement. There were no comments from the public. All the parties, including the AARP signed off on the settlement agreement so they felt that their issues had been resolved.”

As far as what that means for MDU customers…

“… Average residential customers will receive an increase of $6.23 starting most likely in the next billing cycle.”

Fedorchak says while customers will see an increase, they will also receive a one-time refund of money overpaid while MDU was operating under an interim rate.

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