BISMARCK, ND - Montana-Dakota Utilities filed a rate increase request with the North Dakota Public Service Commission Friday. If it's approved, it would increase residential electric bills by an average of more than $9 a month.
According to a press release, the reason for the increase request is because of increased investment in facilities and the associated depreciation, operation and maintenance expenses and taxes.
The PSC has up to seven months to render a decision on the proposed increase request.
The last time MDU filed for a rate increase was April of 2010.
Full MDU Statement:
Montana-Dakota Utilities Co. on Friday filed an electric general rate increase request with the North Dakota Public Service Commission. If approved it would increase residential electric monthly bills by an average of about $9.60.
The main reason for the increase request is because of increased investment in facilities and the associated depreciation, operation and maintenance expenses and taxes.
“We have worked hard and continue to work diligently on managing our costs while gaining efficiencies whenever possible, along with selecting low-cost options to meet our customer needs” said Nicole Kivisto, president and CEO of Montana-Dakota Utilities. “However, we have made significant investments in our facilities and in technology to provide our customers with safe and reliable service.”
The proposed increase is for $13.4 million per year over current rates, or a 6.6 percent increase. The proposed increase would be allocated as follows to each rate class, based on cost-of-service studies:
Residential 9.4 percent
Small General Service 10.9 percent
Large General Service 4.0 percent
Municipal Lighting 1.1 percent
Municipal Pumping 9.7 percent
Outdoor Lighting 1.6 percent
Montana-Dakota serves approximately 100,700 electric customers in 117 North Dakota communities.
The North Dakota PSC has up to seven months to render a decision on the proposed increase request.
Montana-Dakota also filed a request with the PSC to implement an interim rate increase to go into effect within 60 days of the general rate filing. The interim increase is subject to refund if the final increase authorized by the PSC is less than the interim.
Montana-Dakota’s last electric general rate increase was $7.6 million, or 6.9 percent, effective July 22, 2011. That rate increase request was filed April 19, 2010.
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.