Wyoming Electric Rate Request
Montana-Dakota Utilities gave a presentation on the proposed electric rate increase at a Sheridan County Commission public meeting on Jan. 14, 2010, at the Sheridan Senior Center. View the presentation from that meeting.
Rate Request Overview
Montana-Dakota Utilities is requesting an increase in its general electric service rates to recover the investment in 25 megawatts of a new generating resource – Wygen III located eight miles east of Gillette, WY. The resource will provide a portion of the electric requirements in the Sheridan, WY, area on a long-term basis and help protect Montana-Dakota customers against future market price volatility.
The new resource is for the Sheridan, WY, area that serves approximately 15,000 MDU customers in six communities. The company is requesting an electric rate increase of a little more than $5 million annually over current rates. Rate changes by customer class:
- Residential 21.1% increase
- Small General 34.5%
- Large General 27.6%
- Irrigation 21.2%
- Lighting 14%
- Overall 25.1% increase
For a residential customer using about 12,000 kilowatt hours per year, the increase is about $16.24 per month.
The Wyoming Public Service Commission has up to 10 months to render a decision on this request, which was filed with the commission on Aug. 14.
Background
Wygen III is a 100-megawatt, coal-fired electric generation facility currently under construction by Black Hills Power. Montana-Dakota has purchased a 25-percent share. The plant is expected to be completed and ready for commercial operation within the second quarter of 2010. Construction is on time and on budget.
On July 29, 2008, the Wyoming Public Service Commission approved a Certificate of Public Convenience and Necessity request by Montana-Dakota regarding the plant.
Montana-Dakota has historically secured its energy and capacity requirements for its Wyoming customers through a purchased power contract. Once the plant is commercial, it will provide approximately 68 percent of Wyoming customers’ electric requirements.
Ownership vs. Purchasing Power
When Montana-Dakota’s purchased power contract expires in 2016, the company and its customers become exposed to uncertain and potentially volatile market-based power costs. Owning a share of Wygen III will help protect Montana-Dakota customers against future electric market price volatility.
A combination of Wygen III, demand-side management and supplemental purchased power will provide an adequate, reliable and economic electric supply to customers.
Emissions
Wygen III is being built with state of the art emission control equipment, including low nitrogen oxide burners and a selective catalyst reduction unit for nitrogen oxide control. It will feature a dry scrubber and fabric filter baghouse for sulfur dioxide and particulate control, and an activated carbon injection and combustion pretreatment system for mercury control.
Rate case history
The Wyoming Public Service Commission approved a rate increase of 2.3 percent in May 2009. That request was made and granted to reflect increases in operating costs. It was the first increase since December 1993.
The new request is primarily for the ownership in Wygen III.
Montana-Dakota encourages customers to utilize conservation programs and practices to help mitigate the effect of rate increases on their bills. As a residential or commercial customer, you can take advantage of incentives and service plans to save energy or help balance your budget.
Energy Assistance Information
If you find yourself having trouble paying your heating bills, please 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.