The Public Service Commission has approved the settlement agreement for MDU electric rates.
The utility had sought an increase of 12.3 percent, or $25.3 million. But under the agreement, worked out between MDU, PSC staff and the interveners, that was lowered to $15.2 million. It’s an overall rate increase of 7.4 percent.
This means residential customers, using 800 kilowatts of power each month, would see an increase of $8.27 – but because MDU was granted an interim increase, this will mean another $3.18 per month over what customers are paying now.
The fixed basic service charge will be up by $15.24 per month. MDU had originally asked for $20 per month.
Overall, it’s around 40 percent less than what MDU had initially asked for.
"I'm going to be complimentary to all parties — MDU, our advocacy staff, and the interveners," said Commissioner Sheri Haugen-Hoffart, who holds the PSC's electric portfolio. "They were really mindful of what it takes to run an effective company — to be efficient, to be reliable, and to find where we can cut costs.'
The new rates will take effect July first.
