Dakota Electric seeks an 11% rate increase
(FARMINGTON, MN) December 31, 2024 – Dakota Electric Association filed a rate case with the Minnesota Public Utilities Commission (MPUC) yesterday, December 30, 2024. Dakota Electric is seeking an overall increase of approximately 11%, or $23.8 million. The last time Dakota Electric filed a rate case with the MPUC was in 2019.
Temporarily, Dakota Electric is asking the MPUC for an interim rate increase of 9.5%. The additional charge will apply to electricity use beginning in March 2025.
The monthly bill for a typical residential member using 700 kilowatt-hours of electricity will increase by about $8.72 due to the proposed interim adjustment. The interim rate will appear on bills as “Interim Rate Adjustment.”
“Each year, Dakota Electric builds a bottoms-up operating budget, analyzing all costs of delivering safe and reliable electricity. We carefully assess operational expenses, infrastructure needs, and long-term investments. As a result, Dakota Electric recently submitted a filing to the MPUC to begin a 10-to-12-month review process for a proposed rate adjustment of 11%,” said Ryan Hentges, President and CEO of Dakota Electric Association. “We understand that rate adjustments impact household budgets, so we approach the process carefully and only request adjustments when necessary. Dakota Electric hasn’t filed a rate case since 2019 and before that, 2014.”
Following a comprehensive investigation, the MPUC will establish the final rates and charges, which may differ from those initially requested by Dakota Electric. These final rates and charges will become effective on a date set by the MPUC. This process with the MPUC is expected to take 10-12 months. If the overall approved increase is lower than interim rates, Dakota Electric will refund members the difference with interest. If the final overall approved revenue exceeds interim rates, Dakota Electric will not back-charge members the difference.
“Over the next couple of months, Dakota Electric will provide details about the hearings in local newspapers, bill inserts, letters to members and on our website,” continued Hentges. “Members may also provide written comments about the rate adjustment to the MPUC.”
To read in detail why the co-op must file for a rate adjustment and to find out how to stay involved, members are encouraged to visit dakotaelectric.com/rates and follow Dakota Electric on X, Facebook, Instagram and LinkedIn.
About Dakota Electric Association:
Dakota Electric Association is a member-owned, not-for-profit electric cooperative serving over 115,000 members in and around Dakota County. Established in 1937, Dakota Electric is committed to providing its members with reliable, affordable, and sustainable electricity while actively engaging with the community and promoting energy efficiency. For more information, visit www.dakotaelectric.com or follow Dakota Electric on X, Instagram, Facebook or LinkedIn.
