Minnesota Public Utilities Commission approves total rate increase of 9.62%

(FARMINGTON, MN) June 3, 2026 – Dakota Electric Association® announced that new electric rates approved by the Minnesota Public Utilities Commission (MPUC) went into effect June 1, 2026.

The approved rates follow a comprehensive review process that began on December 31, 2024, when Dakota Electric filed an application requesting an 11.0% annual rate increase, or approximately $23.8 million. An interim increase of 9.5% went into effect in March 2025 while the case was under review. This is Dakota Electric’s first rate increase since 2019. Rates from that case took effect in October 2020.

On June 6, 2025, Dakota Electric Association, the Minnesota Department of Commerce, and the Office of the Attorney General reached a settlement agreement resolving all issues in the case. After reviewing the settlement and recommendations from the Administrative Law Judge, the MPUC approved a final rate increase of 9.62%, or $20.88 million in annual revenue, or approximately 86% of the Cooperative’s original request.

“Our members count on us every day for the energy they need. We recognize that many people in our community are facing difficult times and that no one wants to see their electric bill rise,” said Ryan Hentges, CEO of Dakota Electric. “It’s our job to manage the costs we control before asking members to pay more for their energy, and we’re doing that by improving efficiency across our organization and reducing costs in our operations.”

The actual impact on members’ monthly electric bills will vary depending on electricity use and changes in wholesale power costs.

For residential members:

  • The monthly fixed charge will increase by $2
  • Summer energy rates will increase from 13.77¢ to 14.60¢ per kWh
  • Non-summer energy rates will increase from 12.38¢ to 13.20¢ per kWh

“Electric co-ops are not-for-profit, member-owned organizations, which means we’re owned and governed by the people we serve,” continued Hentges. “We offer a range of programs and rebates to help members reduce their bills by managing their energy use. I encourage all our members to check out these options and enroll if they work for them.”

For more information about Dakota Electric or final rates, members are encouraged to visit dakotaelectric.com/rates.

About Dakota Electric Association:
Dakota Electric Association is a member-owned, not-for-profit electric cooperative serving over 118,000 members in and around Dakota County. Established in 1937, Dakota Electric is committed to providing reliable, affordable, and sustainable electricity to its members while actively engaging with the community and promoting energy efficiency. For more information, visit www.dakotaelectric.com or follow Dakota Electric on X, Threads, Bluesky, Instagram, Facebook, YouTube or LinkedIn.