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.

North Dakota PSC approves interim price increase

The North Dakota Public Service Commission on Dec. 13, 2023, approved an interim price increase in Montana-Dakota Utilities’ natural gas rate case. The interim increase took effect on Jan. 1, 2024. The average residential customer will see a monthly increase of $5.20.

If the final approval by the PSC is lower than the interim increase, Montana-Dakota will refund the difference to customers with interest.

Montana-Dakota Utilities files natural gas price increase request

Montana-Dakota Utilities on Nov. 1, 2023, filed with the North Dakota Public Service Commission a natural gas price increase request of approximately $11.6 million in annual revenues. If approved, it would increase residential customers’ monthly bill by an average of about $5.90 per month.

Investments in system upgrades and pipeline replacement projects enhancing the reliability, safety and integrity of the natural gas system, as well as increased costs to operate and maintain that system, are the main reasons for the increase request.

Montana-Dakota also is seeking to combine natural gas operations within North Dakota, which means transitioning the 2,346 customers in Wahpeton and surrounding area from Great Plains Natural Gas to Montana-Dakota Utilities for regulatory reporting purposes. (Great Plains Natural Gas is a division of Montana-Dakota Utilities). Upon implementation of final rates in this case, Great Plains customers will be served under its own Montana-Dakota’s tariff, but will continue to receive a Great Plains bill for six months. After the six-month period, customers will begin receiving their natural gas bills under a Montana-Dakota invoice.

As part of this increase request, the impact for an average Great Plains residential customer using 80 dekatherms per year is about $5.15 per month — $62 annually.

Montana-Dakota also filed a request with the PSC for an interim price increase of $10.1 million over current revenues, which, if approved, would be implemented while the PSC reviews the overall request. Interim rates allow the company to collect new revenues while the overall request is pending before the commission; revenues collected are subject to refund if the PSC approves a lower amount than the interim rate. The impact for residential customers would be:

  • $5.20 for a Montana-Dakota residential customer
  • $2.90 for a Wahpeton residential customer

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.

Exhibit No.___(LEK-3)_MDU Gas Plant Report

Exhibit No.___(LEK-4)_MDU Common Plant Report

Vol. I Letter_Application_Appendices_Direct Testimonies

Vol. II Statements A-L_Workpapers Statements

Vol. III Interim Application

Montana-Dakota Utilities files natural gas increase request in South Dakota

Montana-Dakota Utilities filed a natural gas price increase request with the South Dakota Public Utilities Commission on Aug. 15. If approved, it would increase residential customers’ monthly bill by an average of about $8.70 a month.

“The primary reasons for this request to increase prices are increased operating costs, along with increased investment in our natural gas facilities,” said Nicole Kivisto, president and chief executive officer of Montana-Dakota.

The proposed increase is for approximately $7.4 million annually over current prices, or a 11.2% overall increase. Montana-Dakota serves about 64,600 natural gas customers in 26 South Dakota communities.

The proposed increase for each customer group, supported by studies to determine the cost to serve each group, is:

  • Residential 15.9%
  • Firm general 4.9%
  • Small interruptible 1.9%
  • Large interruptible 6.1%
  • Total overall increase: 11.2%

The last price increase for South Dakota natural gas customers was $1.2 million, or 2.45%. That request was filed in June 2015 and went into effect on July 1, 2016.

The company’s rate base, which includes such things as pipelines, meters and buildings, has grown by $33 million, or nearly 75%, since the 2015 case.

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.

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

Montana-Dakota Utilities files electric increase request in South Dakota

Montana-Dakota Utilities Co. filed an electric price increase request with the South Dakota Public Utilities Commission Tuesday, Aug. 15. If approved, it would increase residential customers’ monthly bill by an average of about $19.68 a month.

The proposed increase is for $2.98 million annually over current prices, or a 17.3% overall increase. Montana-Dakota serves about 8,500 electric customers in 32 South Dakota communities.

The proposed increase of 17.3% is broke down for each customer group as follows:

  • Residential 17.6%
  • Small General 17.2%
  • Large General 15.1%
  • General Space Heating 29.6%
  • Street Lighting 11.1%
  • Municipal Pumping 16.2%
  • Outdoor Lighting 32%

The last increase request was filed in June 2015. An increase of $1.4 million, or 9.9%, was implemented on July 1, 2016. For the average residential customer, the price increase was about $4.44 per month, or 5%.

The 17.3% increase request equates to an average annual increase of approximately 2.2% since the last rate case.

The main reasons for the request to increase annual revenues are related to the investments needed to provide safe and reliable service, including a new natural gas combustion turbine under construction, as well as increases in operation expenses, such as labor, depreciation and property tax. The amount invested in the company’s electric infrastructure has grown by $33 million, or 80%, since the last price increase.

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.

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

Wyoming has no rate cases at this time.