Your Rate Information
We have worked hard over the years to provide the reliable service you want. However, the cost to deliver reliable power is increasing, and as a result, the price you pay for electricity is rising. This isn’t news we like to deliver, but we want to make sure you know why electricity prices are increasing and what you can do to reduce the impact to your bills.
Dakota Electric filed a rate case with the Minnesota Public Utilities Commission (MPUC) seeking permission to increase overall electric utility revenue by about 4.3%.
A rate case is a proceeding before regulators at the Minnesota Public Utilities Commission to get approval to increase rates.
Since Dakota Electric’s last request for a rate increase in 2014, cost for equipment, labor and materials have continued to increase. These factors, combined with nearly flat electric sales in the last five years, contributed to the need for this filing.
We filed the rate case with the Minnesota Public Utilities Commission on Sept. 19, 2019. It may take the MPUC about a year to review our rate case and make a decision.
The proposed increase in total cooperative annual revenues is 4.3%. While the effect of the proposed increase on individual bills will vary, the average monthly bill (700 kWh) for a residential member will increase by about $4.22 from $94.96 per month to $99.18 per month. This increase includes a change in the residential fixed charge, which will increase by $1 per month, from $9 to $10.
State law allows us to collect higher rates on an interim basis while our rate filing is reviewed. Since the MPUC approved our request for a 3.0% interim increase, the additional charge will apply to electricity use beginning in November, for which members will begin receiving bills in December. The interim increase will remain in effect until the MPUC determines final rates. The monthly bill for a typical residential member using 700 kilowatt-hours of electricity will increase about $2.85 as a result of the proposed interim increase, which will appear on bills as “Interim Rate Adjustment.”
If the approved overall total increase is lower than interim rates, we will refund members the difference with interest. If the overall total increase is higher, we will not charge members the difference. For residential and small general service members, the interim adjustment applies to the monthly fixed charge, energy charge and resource and tax adjustment. The interim adjustment also applies to the demand charge for commercial members.
By participating in energy efficiency rebates and load control programs, and utilizing more methods of conservation, our members have reduced their electricity consumption. The average Dakota Electric residential member in 2019 uses approximately 100 kWh less each month than they did in 2014. The average residential member will spend less per month on their electric bill after the rate increase than they did in 2014. Those members who participate in the conservation programs that Dakota Electric offers have reduced their monthly energy use and see ongoing savings.
The Minnesota Public Utilities Commission (MPUC) will hold public hearings and is seeking written comments about our rate increase request from the public. The public will be able to comment on our rate increase request at public hearings. You may speak at the public hearing, provide written comments, or both for the record. Dakota Electric will provide details about the hearings in local newspapers, in a bill insert and on this webpage. Comments may be sent directly to the MPUC, see: “How to participate.”
A complete copy of our filing is available for review at our Farmington office between 8 a.m. and 4:30 p.m. Monday through Friday. You may also review our current and proposed rate schedules and our request for new rates by contacting the Department of Commerce at:
Minnesota Department of Commerce
85 7th Place East, Suite 500
St. Paul, MN 55101
For the full case record: See all documents filed in this docket through the Minnesota Department of Commerce. Click EDockets, select 19 in the year field, enter 478 in the number field, click on search and the list of documents will appear on the next page.
Dakota Electric will also keep members informed of rate filing developments in our Circuits newsletter. As always, if you have questions or comments for Dakota Electric, contact us at 651-463-6212 or [email protected].
How to participate
Anyone who wishes to file a petition to intervene in this case should contact:
Minnesota Office of Administrative Hearings
P.O. Box 64620
St. Paul, MN 55164-0620
You do not need to contact the Minnesota Office of Administrative Hearings if you simply want to attend the public hearings, provide oral comments at the public hearings or submit comment letters.
The MPUC is asking customers to comment on Dakota Electric Association’s request for a rate increase. Send your comments to:
Be sure to reference MPUC Docket No. E-111/GR-19-478 in all correspondence or requests.
You will also have the opportunity to provide written comments directly to the Administrative Law Judge that hears this case during the contested case proceeding.
Citizens with hearing or speech disabilities may call through their preferred Telecommunication Relay Service.