Minnesota Power has asked for a $81m net increase in electric retail rates to support infrastructure and environmental improvements.
New rates approved by the Minnesota Public Utilities Commission are expected to go into effect in 2011. The company has requested that interim rates be implemented in early 2010.
Minnesota Power revealed earlier that its intent to file for additional revenues to recover the costs of investments to ensure current and future system reliability, enhance environmental performance and bring new renewable energy to Northeastern Minnesota.
If the request is approved, Minnesota Power estimates that an average residential customer, using 755 kilowatt-hours, would see an increase of $13 on their monthly bill. The new rate request also includes shifting $14m in line items currently reflected on customers’ bills into base rates. That shift would result in no net increase or decrease on customers’ bills.
The new rates would help pay for a series of upgrades at the company’s Boswell Energy Center’s four generating units in Cohasset that directly benefit Minnesota’s environment. A three year project at the facility’s second largest unit is scheduled to be completed this month and is expected to reduce emissions by 80 to 90%.
The acquisition of a DC transmission line between North Dakota and Minnesota is also part of the request. That acquisition is currently pending state and federal regulatory approval. The 465 mile existing line will be used to deliver wind energy to customers in Minnesota, including from the company’s Bison 1 energy center. Site development for the 75MW project is currently underway near New Salem, North Dakota.
Overall, due to lower fuel costs, customers’ bills have remained relatively flat and their electric rates have remained competitive in the region even with last year’s interim rate increase. Final rates for the company’s May 2008 request will go into effect with this month’s bills.
Through its Power of One programme, Minnesota Power offers customers rebates, tools and programmes to help conserve energy and save on their monthly bill.