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Politics & Government

MDU electric customers to see higher bills, due to a renewable energy rider

MDU has been granted a “renewable energy rider” on customers’ electric bills.

It would pay for wind power from the Thunder Spirit Wind Farm in Adams County. And it will add another $2.44 to an average MDU customer’s electric bill.

"It's a pretty significant amount, considering we've had rate cases that are right around $2 a month," said Public Service Commissioner Brian Kalk.

But Kalk and the other Commission members say it’s actually a fair price. PSC Chairman Julie Fedorchak says the Commission looked at MDU’s options for new generation. And she says originally, MDU made a power purchase agreement with the wind farm’s developer, Allete Clean Energy of Duluth. Fedorchak says when MDU decided to buy the wind farm, the price made even more sense.

"We've analyzed that pretty thoroughly," said Fedorchak. "And this is a pretty affordable resource addition."

The charge is effective immediately.