Reasons For A Rate Adjustment

Continued load growth has helped spread out fixed costs, allowing us to delay or minimize additional rate increases longer than previously projected. As our community grows and demand rises, efficient use of resources has kept operations balanced and costs manageable for everyone.

Dakota Electric has worked hard to optimize our workforce and workflows leading to increased efficiency and cost savings. These savings have helped us maintain stable rates despite rising energy costs over the past five years. Our average price per kilowatt hour is lower than the state and national averages are. *Data Source: U.S. Bureau of Labor Statistics: https://www.bls.gov/regions/midwest/news-release/averageenergyprices_minneapolis.htm

As we strive to to deliver on our promise of safe, affordable and reliable electricity, we need to continually invest in our distribution infrastructure. One of the driving factors behind our current request is the rising costs of critical equipment, such as transformers, poles, and wires. Supply chain challenges have led to extended lead times, often stretching for months or years, making it necessary to plan ahead and adjust rates accordingly. Additionally, we must make investments in our employees, by retaining and attracting a qualified workforce to deliver on our promise of service.

Since 2019, the cost of supplies and materials have increased exponentially. The below graphics show how much each asset has increased in cost since 2019 along with how many units/miles of each Dakota Electric maintains.