Rate Adjustment Timeline

Learn about the process with the public utilities commission and understanding interim rates.

As a member-owned cooperative, we have a unique responsibility to our members. Our decisions are guided by what’s best for our community, not by shareholders. We understand that rate changes impact household budgets, which is why we approach the process with care and only request adjustments when absolutely necessary.

The process begins with a comprehensive review of our financial needs. 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 determine if a rate adjustment is necessary. We never ask for more than what we need.

Our member-elected board of directors play a critical role in the process. They represent you, our members, and work closely with our management team to review the budget, discuss options, and ensure any proposed rate changes are both necessary and fair. Their involvement ensures that your voice is heard in every part of every decision.

Once our board approves the need for a rate increase, we submit a formal filing to the Minnesota Public Utilities Commission (PUC) to begin the projected ten-to-twelve-month-long review process. This filing includes detailed financial data, analysis, and projections to show why a rate adjustment is needed. Sixty days after this filing, interim rates are put in place. Interim rates are a temporary rate adjustment put in effect while the PUC reviews the request for a permanent rate change, helping ensure Dakota Electric can cover its operating costs and continue providing reliable service while the rate case is under consideration. Learn more in our rate filing brochure.

Once interim rates are in effect and before the final rates are approved, the Commission opens a public comment period. Our members have an opportunity to participate during this time, as it helps ensure that the final decision reflects the interests of everyone in our community.

When the PUC approves the interim rates, the Commission will ask the Office of Administrative Hearings (OAH) to review our rate filing. The OAH will assign an Administrative Law Judge (ALJ) to oversee the review. This review typically takes six-to-nine months and includes reviewing evidence, hearing testimony from state agencies and considering all input, including your public comments. After this review, the ALJ issues a report with recommendations for the Commission’s final decision.

The Commission takes the ALJ report into account, along with public input, before making a final ruling. If approved, the new rates are implemented on a set schedule. These changes are communicated to our members well in advance, providing clear explanations about how the updated rates will affect bills.