North Dakota - Overview

Montana-Dakota Utilities Co. > North Dakota

 

View North Dakota natural gas and electric rates and rules

 

Proposed N.D. electric rate request

Below are the documents filed with the North Dakota Public Service Commission:

Rate Increase Application Amended July 6

Rate Increase Application

Application Statements

Application Testimony and Exhibits

 

Overview of the request as amended on July 6 

  • Montana-Dakota Utilities Co. is requesting an increase in its North Dakota electric service rates. The rate increase is driven primarily by the need to recover investments made in generating assets and infrastructure.
  • The company is requesting an electric rate increase of $11.5 million annually over current rates, or a 10 percent increase, which reflects a reduction in the requested return on equity. The increase would be applied on an approximately equal basis to all customer classes.
  • For an average residential customer using 750 kilowatt hours per month – or 9,000 kwh per year – the increase is about $5.50 per month or $66 per year.
  • The proposed increase for residential customers would raise the basic service charge from $5.50 to $10.64 per month with the remainder of the increase recovered through the energy charge based on a customer’s usage.
  • Amended application reduces the request by $2.1 million for Big Stone II generation development costs, which will be recovered over a three-year period through the fuel cost adjustment, beginning Aug. 1, 2010.
  • Montana-Dakota serves approximately 75,350 electric customers in 114 communities in North Dakota.
  • The North Dakota Public Service Commission last approved a rate increase of 1.2 percent, which went into effect in January 2004. The previous rate increase was in 1987 when 6.4 percent was approved.
  • Montana-Dakota has worked, and continues to work hard on managing its operation and maintenance costs while gaining efficiencies whenever possible.
  • Almost half of the increase represents investments in new renewable energy projects – 30 megawatts of new wind generation in addition to the 19.5 megawatts of wind generation and 5.3 megawatts of waste heat generation added in the last couple of years. Fuel cost savings associated with the renewable energy projects are passed onto customers through the fuel cost adjustment.
  • Montana-Dakota has invested in renewable energy to diversify its generation mix, reduce its carbon footprint and to work toward meeting North Dakota’s renewable objective, which calls for 10 percent of electricity sold come from a renewable source by 2015.
  • Montana-Dakota also has made significant investments in other electric infrastructure over the past five years in order to improve reliability, gain efficiencies and for environmental requirements. Some examples are the new transmission lines along the new Memorial Bridge, new substations in Bismarck-Mandan and the implementation of automated meter reading.
  • One other major reason for the increase request is the change in wholesale sales. The amount has decreased dramatically in the last five years because of changes in the market and a decrease in surplus power for Montana-Dakota to sell. The sales previously provided an offset to other increased costs.
  • The investment in generation serves all of Montana-Dakota’s customers in Montana, North Dakota and South Dakota. North Dakota’s share of these investments is about two-thirds.
  • The North Dakota Public Service Commission has up to seven months to render a decision on this request, which was filed with the commission on April 19, 2010.

 

North Dakota Overview 

Montana-Dakota Utilities provides service to approximately 75,350 electric and 90,000 natural gas customers in 150 communities in the Peace Garden State.

As a residential or commercial customer, you can take advantage of incentives and service plans to save energy or help balance your budget.

MDU takes great pride in not only bringing safe, reliable service to these communities, but we're also In the Community to Serve.

Montana-Dakota's utility operations are regulated by the North Dakota Public Service Commission through rates and tariffs filed and approved by the Commission.


Energy Assistance Information

Having trouble paying your heating bills? Request information online or call 1-800-MDU-FAST (1-800-638-3278) and we will direct you to available assistance in your area.

Find out more online about programs to help eligible individuals and families with heating and insulation related costs in the winter.