As previously mentioned, Dakota Electric has been analyzing all costs associated with delivering safe and reliable electricity and determined a rate adjustment is necessary for the cooperative’s long-term financial health. As a result, Dakota Electric recently submitted a filing to the Minnesota Public Utilities Commission (MPUC) to begin a 10- to 12-month review process for a proposed rate adjustment of 11%. We understand that rate changes impact household budgets, which is why we approach the process with care and only request adjustments when absolutely necessary. Dakota Electric hasn’t filed a rate case since 2019 and before that, 2014. Each year, Dakota Electric builds a bottoms-up operating budget, analyzing all costs associated with delivering safe and reliable electricity. We carefully assess operational expenses, infrastructure needs, and long-term investments. To read in detail why the cooperative must undergo a rate adjustment, please visit our rate pages.
What comes next
State law allows us to collect adjusted rates on an interim basis while our rate filing is reviewed. Interim rates are a temporary rate adjustment put in effect while the MPUC reviews the request for a permanent rate change. If the MPUC approves our request for a 9.5% interim increase, the additional charge will apply to electricity use beginning in March 1, 2025. 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 $8.72 as a result of the proposed interim adjustment, which will appear on bills as “Interim Rate Adjustment.” 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.
Member involvement
Members may comment on the proposed final increases at public hearings that will be scheduled by an administrative law judge from the MPUC. Dakota Electric will provide details about the hearings in local newspapers, a bill insert, letters to members and on our website. Members may also provide written comments about the rate increase to the MPUC.
While this rate adjustment is necessary, we remain committed to transparency and fairness. We want all our members to understand why these changes are needed and how they contribute to our cooperative’s long-term financial health and service reliability.
