Montana-Dakota Utilities files electric increase request in South Dakota
BISMARCK, N.D. – July 1, 2015 – Montana-Dakota Utilities Co. filed an electric rate increase request with the South Dakota Public Utilities Commission Tuesday, June 30. If approved, it would increase residential customers’ monthly bill by an average of about $16.90 a month. This is the first request to change electric rates since 1985.
“There are three main drivers for this request to increase annual revenues,” said Nicole Kivisto, president and chief executive officer of Montana-Dakota. “The reasons are the investment in pollution control projects to comply with federal environmental regulations; additional electric generation to serve the growing needs of our customers; and additional transmission services to meet demand and provide for added reliability.”
The proposed increase is for $2.7 million annually over current rates, or a 19.2 percent overall increase. Montana-Dakota serves about 8,600 electric customers in 30 South Dakota communities.
The requested increase is proposed to be allocated equally to each rate class.
The investment to serve customers has more than doubled since the last rate case, representing an increase of approximately $55 million. The increase in investment has caused an increase in operating expenses, depreciation and taxes.
The South Dakota PUC has up to six months to issue a decision on the proposed increase request.
Montana-Dakota encourages customers to use energy wisely. Conservation tips, information on energy assistance and information on the company’s balanced billing program can be found on Montana-Dakota’s website: www.montana-dakota.com.
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