PSC will look at a potential natural gas rate increase settlement with MDU

Oct 24, 2013

The Public Service Commission will be looking at a settlement agreement – reached between Montana-Dakota Utilities and PSC staff – on MDU’s latest request for a natural gas rate increase.

MDU had filed for a 6.4 percent increase – or about $6.8 million. It also filed for interim rates – in the amount of 4.5 million dollars.

The settlement agreement says MDU will get a $4.25 million rate increase.  And because the interim rates have NOT yet been implemented, MDU agrees to hold to that figure for the interim rates, until the PSC makes the final ruling.

Commissioner Julie Fedorchak says the settlement agreement does not address one issue – and that is the rate design.

"That is, now that you know how much revenue you're going to get, who's going to pay what and how is it separated by classes of customers," said Fedorchak. "That's not been decided in the settlement agreement."

The PSC will hold an informal hearing on the settlement agreement – and if there is a request to do so, a formal hearing. The Commission will also be going forward with public input sessions in early December, to be held at six locations around North Dakota.

MDU would also agree to refrain from asking for another rate increase before January, 2015.