On July 2, 2014, Dakota Electric Association filed an application with the Minnesota Public Utilities Commission (MPUC) for an electric rate increase of about $4.2 million or 2.1 percent annually. The MPUC approved a total rate increase of approximately $4 million, or 2 percent. This is approximately 0.5 percentage points more than interim rates that have been in place since September 2014.
How the changes affect your individual monthly bill will vary depending on the amount of electricity you use. Your monthly bill will also vary due to changes in the cost of wholesale power purchased by Dakota Electric Association for your use. The amount you are charged for wholesale power costs is the same amount Dakota Electric pays.
Residential members will see a $1 increase in the monthly fixed charge and the energy charges per kWh will increase from 12.864¢ to 13.08¢ during the summer months, and from 11.464¢ to 11.68¢ during other months.
The overall average increase for residential members is 2.69 percent. Under the MPUC decision, electric rates changed for all member classes and are noted in the charts to the right.
Resource and Tax Adjustment (RTA)
While the majority of the Resource and Tax Adjustment was absorbed into the standard rate, members will continue to see a Resource and Tax Adjustment charge for increases in wholesale power in 2015. The 2015 Resource and Tax Adjustment rates were not available when Dakota Electric filed its rate increase application in 2014.
2016 RTA increase
At this time, Dakota Electric anticipates an RTA increase in 2016. The final RTA change will be reported in the February issue of Circuits.
Each month your bill includes an RTA line. The RTA allows Dakota Electric to recover cost increases related to:
Purchasing electricity from Great River Energy, which generates electricity for members of 28 Minnesota cooperatives; Energy conservation programs; Property and real estate taxes.
The RTA is a direct pass-through of fluctuating costs, and the MPUC reviews these costs every year. For more information, contact us at 651-463-6212 or click here.