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 has no rate cases at this time.

Montana-Dakota Utilities files electric price increase request in North Dakota

Montana-Dakota Utilities filed with the North Dakota Public Service Commission on May 16 a request to increase electric prices. If approved, it would increase the monthly bill for a typical non-space heating residential customer by about $14.94.

The main reasons for the increase request are because of increased investments since 2017, including an 88-megawatt simple cycle combustion turbine, the associated depreciation with the increased investments, and increases in property taxes, labor, software maintenance expenses, insurance expenses and other recent inflationary increases.

“We recognize prices have increased for many day-to-day necessities because of inflation increasing in mid-2021 and exceeding 8% in early 2022; however, a good portion of the investments that are part of this regulatory request were made before rising inflation,” said Nicole Kivisto, president and CEO of Montana-Dakota Utilities. “We believe the investments are prudent to ensure safe and reliable electric service to our customers. Current prices do not reflect the cost of providing electric service to our North Dakota customers, which is why we are requesting this increase.”

The proposed increase is for $25.4 million annually over current prices, or a 12.3% overall increase. Montana-Dakota serves about 93,500 electric customers in 119 North Dakota communities.

Based on a study that determines how much it costs to serve each customer group, the increase by each group is as follows:

Residential                   17.3%

Small General Service 18.4%

General Service              7.8%

Municipal Lighting         7.3%

Municipal Pumping      13.8%

Outdoor Lighting            4.2%

Total Request              12.3%

 

The last increase in electric general rates was 3.7% percent effective in August 2017.

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

Montana-Dakota also filed a request with the PSC to implement an interim price increase to go into effect within 60 days of the filing. The interim request is for $11.4 million, or 6.6%. For a typical non-space heating residential customer, the monthly impact would be about $5.33. The interim increase is subject to refund if the final increase authorized by the PSC is less than the interim.

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.

The full filing can be viewed by clicking the following links:

South Dakota has no rate cases at this time.

Wyoming has no rate cases at this time.