Montana-Dakota Utilities rate cases

Montana-Dakota Utilities is a regulated utility under the jurisdiction of regulatory commissions in the states it serves. The rates customers pay are approved by each state’s regulatory commission. When the costs of providing safe and reliable electric and natural gas service exceed what customers are paying in rates, Montana-Dakota files a rate increase request with the applicable state regulatory commission.

Requested increases are the result of additional costs necessary to maintain a safe and reliable system; upgrade aging infrastructure and technology; meet growing demand; and compliance with state and federal regulatory requirements, such as environmental mandates.

The company does not have authority to change rates without approval by a state regulatory commission. Click on your state below to review information about recently approved or pending rate case filings.

Montana-Dakota Utilities files electric price increase request in Montana

BISMARCK, N.D. – September 28, 2018 – Montana-Dakota Utilities Co. filed an electric price increase request with the Montana Public Service Commission September 28. If approved, it would increase residential customers’ monthly bill by an average of about $16.23 a month.

“Making a request to increase prices is something we do not take lightly; we do our best to balance the cost to customers with the amount investments we make to our system to ensure safe and reliable electric service,” said Nicole Kivisto, president and chief executive officer of Montana-Dakota. “The main reason we are asking for a price increase is to recover $68 million in investments we have made since our last price increase request in 2015.”

The proposed increase is for $11.9 million annually over current rates, or a 19 percent overall increase. The investments were necessary to provide safe and reliable service to our 25,770 electric customers in 30 Montana communities, as well as to meet environmental requirements. The investments also carry increased costs in operation and maintenance expenses, depreciation expense and property taxes. The price increase request was offset by tax savings associated with the Tax Cuts and Jobs Act of 2017.

The Montana PSC has up to 10 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 this website.

Click below for the full filing made with the PSC:

Vol. I Direct Testimony

Vol. I Transmittal Letter.Application.Appendices

Vol. II Statements A-O

Vol. III Interim Application

Montana-Dakota Utilities files natural gas price increase request in North Dakota

UPDATE (9-27-17): The North Dakota Public Service Commission approved interim rates in Montana-Dakota’s natural gas rate case. State law allows Montana-Dakota to charge an interim rate while the PSC considers the company’s request for a change in prices. Effective Sept. 19, 2017, the company will increase rates on an interim basis by $4.6 million annually, or 4.2 percent over current prices. Residential customers will see an increase of about $2.44 per month. See this bill insert for more information.

The PSC also scheduled public input sessions to provide a chance for customers to learn more about the rate case issues and provide comments to the PSC. The sessions are scheduled for 5 p.m. on Oct. 24 and 5 p.m. on Oct. 25 at various locations. A list of locations, as well as other ways to provide comment to the PSC, are outlined in this bill insert.

(7-21-2017) Capital investment in pipeline replacement projects enhancing the safety and integrity of the natural gas system, as well as increased cost to operate and maintain that system, are the main drivers in Montana-Dakota Utilities filing a request with the North Dakota Public Service Commission to increase prices. If approved, the request would increase a residential customer’s bill by an average of about $2.98 a month.

“Our customers expect safe, reliable and affordable natural gas service, as do we. To meet those expectations, we have invested, and will continue to invest, in our infrastructure, which includes replacing dated pipelines,” said Nicole Kivisto, president and CEO of Montana-Dakota. “Our talented employees work hard every day to provide the most efficient and cost-effective service to our customers.”

The company has implemented a proactive pipeline replacement plan that, including investments since the last rate case in 2015 and projected investments through 2018, is 18 percent higher than investments through 2015. The PSC approved in the last case an increase of 2 percent, or $2 a month for the average residential customer.

The current proposed increase is for $5.9 million over current annual revenues, or a 5.4 percent overall increase. Montana-Dakota serves about 109,000 natural gas customers in 74 North Dakota communities.

The proposed increase for each customer group, taking into consideration studies to determine the full cost to serve each customer group, is:
• Residential 5.9 percent
• Firm general 5.5 percent
Increases are not proposed for the other customer groups because they are adequately covering the cost to provide service under current prices.

The PSC has up to seven months to issue a decision on the proposed increase request.

For more information:
Informational Graphic
Interim Application

South Dakota has no rate cases at this time.

Wyoming has no rate cases at this time.