According to the company, the main reasons for the increase request are to recover the cost of increased investment in electric facilities, loss of wholesale sales margins and recovery of costs associated with all facets of its electric generation. Montana-Dakota’s last rate increase went into effect in January 2004 when the commission granted a 1.2% increase.
Dave Goodin, president and CEO of Montana-Dakota, said: “We have worked and continue to work extremely hard at watching our operating expenses and try to keep rates flat, as demonstrated in the rates – absent monthly fuel adjustments – we charge today are only 1.2% higher than those we charged in 1987. We have reached a point where an increase in rates is necessary.
“We have made investments in renewable electric generation, as well as investments in our transmission and distribution system for reliability, efficiency and growth.”
The commission has up to seven months to render a decision on the proposed increased request. The proposed increase is for $15.4m per year, or 14%. The increase will be applied on an approximately equal basis to all customer classes. Montana-Dakota has about 75,350 North Dakota electric customers in 114 communities.
