The North Dakota Public Service Commission has granted an interim electric rate increase for Montana-Dakota Utilities (MDU) customers, even as a larger, permanent rate hike request from the utility continues through the regulatory process. This interim approval means local residents will see an immediate increase on their monthly electricity bills while the full proposal is still under review by the commission.
The Public Service Commission approved a 12.3% interim rate increase. For an average residential customer, this adjustment translates to an increase of about $12.90 per month. This change is now effective for MDU's electric customers across its service area.
MDU originally filed for an overall rate increase of 14.5% on June 30. If this full request is ultimately approved by the three-person Public Service Commission, it would increase the monthly electricity bill for an average residential customer by approximately $19.10. The company’s application indicates that if the full rate hike is granted, MDU's annual revenues would increase by $34.5 million, with the majority of this revenue coming from residential and large general service customers. Specifically, rates for residential customers would rise by 18.9%, while large general service customers would face an 11.1% increase, according to MDU’s filing.
AARP North Dakota has formally intervened in the rate case, stating its intention to advocate for consumers who are facing these potential utility cost increases. The group argues that if the full rate increase is approved as proposed, residential customers would bear a disproportionate share of the total increase. Janelle Moos, advocacy director at AARP North Dakota, expressed concerns in a news release about the impact on households. Moos highlighted that a "fixed rate increase means residential customers can’t adjust their electrical usage to manage the increase." She further noted that for those on fixed incomes, an increase in utility rates presents a significant challenge, especially given the rising prices for necessities like groceries, gas, and rent.
MDU officials maintain that the rate increase is necessary to cover significant capital expenses, which include essential infrastructure improvements, as well as rising operating costs. The company also clarified that the proposed rate increase is not related to data center projects. MDU last requested a rate increase from the Public Service Commission in 2022. The Public Service Commission has not yet scheduled public hearings to review the full details of MDU's current rate increase application.