Minnesota Power’s Agreement With Stakeholders on Lower Rate Increase Approved by Minnesota Public Utilities Commission
Minnesota Power, a division of ALLETE Inc. (NYSE: ALE), received approval from the Minnesota Public Utilities Commission for its 2024 electric rate settlement agreement. The approved final rate increase is 4.9% for residential and small business customers (about $5 monthly for average residential customers) and 4.4% for industrial and large commercial customers. This is lower than the interim 8.6% rate increase implemented in January, resulting in customer refunds through a one-time bill credit in early 2025. The commission set Minnesota Power's return on equity at 9.78%.
Minnesota Power, una divisione di ALLETE Inc. (NYSE: ALE), ha ricevuto l'approvazione dalla Commissione Pubblica delle Utility del Minnesota per l'accordo di regolamento delle tariffe elettriche del 2024. L'aumento finale delle tariffe approvato è del 4,9% per i clienti residenziali e le piccole imprese (circa $5 al mese per i clienti residenziali medi) e del 4,4% per i clienti industriali e le grandi aziende commerciali. Questo è inferiore all'interim di 8,6% implementato a gennaio, risultando in rimborsi per i clienti attraverso un credito sulla bolletta una tantum all'inizio del 2025. La commissione ha fissato il ritorno sul capitale di Minnesota Power al 9,78%.
Minnesota Power, una división de ALLETE Inc. (NYSE: ALE), recibió la aprobación de la Comisión de Servicios Públicos de Minnesota para su acuerdo de tarifas eléctricas de 2024. El aumento final de la tarifa aprobado es del 4.9% para clientes residenciales y pequeños negocios (aproximadamente $5 mensuales para clientes residenciales promedio) y del 4.4% para clientes industriales y grandes comerciales. Esto es inferior al aumento provisional de 8.6% implementado en enero, resultando en reembolsos para los clientes a través de un crédito en la factura único a principios de 2025. La comisión estableció el retorno sobre el capital de Minnesota Power en 9.78%.
미네소타 파워는 ALLETE Inc. (NYSE: ALE)의 한 부서로, 2024년 전기 요금 합의안에 대한 미네소타 공공 유틸리티 위원회의 승인을 받았습니다. 승인된 최종 요금 인상률은 주거용 및 소규모 비즈니스 고객에 대해 4.9% (평균 주거용 고객의 경우 월 약 $5)이며, 산업 및 대규모 상업 고객에 대해서는 4.4%입니다. 이는 1월에 시행된 임시 8.6% 요금 인상보다 낮아, 2025년 초에 일회성 청구서 크레딧을 통해 고객에게 환불을 초래합니다. 위원회는 미네소타 파워의 자본 수익률을 9.78%로 설정했습니다.
Minnesota Power, une division de ALLETE Inc. (NYSE: ALE), a obtenu l'approbation de la Commission des services publics du Minnesota pour son accord de règlement tarifaire électrique pour 2024. L'augmentation finale des tarifs approuvée est de 4,9% pour les clients résidentiels et les petites entreprises (environ 5 $ par mois pour les clients résidentiels moyens) et de 4,4% pour les clients industriels et commerciaux majeurs. Cela est inférieur à l'augmentation provisoire de 8,6% mise en œuvre en janvier, entraînant des remboursements pour les clients par le biais d'un crédit de facturation unique au début de 2025. La commission a fixé le retour sur fonds propres de Minnesota Power à 9,78%.
Minnesota Power, eine Abteilung von ALLETE Inc. (NYSE: ALE), erhielt die Genehmigung der Minnesota Public Utilities Commission für ihren Tarifregulierungsvertrag für 2024. Die genehmigte endgültige Tarifanpassung beträgt 4,9% für Wohn- und Kleinunternehmenskunden (etwa $5 pro Monat für durchschnittliche Wohnkunden) und 4,4% für industrielle und große Geschäftskunden. Dies liegt unter dem vorläufigen Anstieg von 8,6%, der im Januar umgesetzt wurde, was zu Rückzahlungen an die Kunden durch eine einmalige Gutschrift auf der Rechnung zu Beginn des Jahres 2025 führt. Die Kommission legte die Eigenkapitalrendite von Minnesota Power auf 9,78% fest.
- Lower final rate increase (4.9%) compared to interim rate (8.6%)
- Customers will receive refunds with interest through bill credits
- Agreement approved by key stakeholders including Minnesota Department of Commerce
- Return on equity set at 9.78%
- Implementation of 4.9% rate increase for residential/small business customers
- 4.4% rate increase for industrial/large commercial customers
Insights
The MPUC's approval of Minnesota Power's rate settlement represents a balanced outcome with several key implications. The final rate increase of
The agreement's structure, including the planned refund of the difference between interim and final rates with interest, demonstrates regulatory effectiveness. This settlement balances the utility's need for revenue to support grid modernization and clean energy transitions while maintaining reasonable consumer costs. The approval provides Minnesota Power with regulatory certainty for its EnergyForward strategy implementation while keeping rate impacts manageable for its diverse customer base.
Minnesota Power reached the agreement with the Minnesota Department of Commerce,
The MPUC approved a final rate increase of about
Today’s approval also set Minnesota Power’s return on equity at
“We appreciate the hard work of our team and our stakeholders, and the commission’s recognition that this rate settlement agreement is the best outcome, with benefits for our customers, our communities, the climate and our company,” said ALLETE Chair, President and CEO Bethany Owen. “It takes all of us working together—regulators, state lawmakers, our customers, our communities, and many more—to achieve a clean-energy transition that’s truly sustainable for everyone. This agreement strikes a balance, with beneficial outcomes for customers while keeping Minnesota Power on track as it works toward the state’s ambitious climate goals.”
Minnesota Power, a utility division of ALLETE Inc. (NYSE: ALE), filed its rate proposal in November 2023 to support the goals of its EnergyForward strategy: Transitioning to new sources of renewable energy, building more resiliency into the electric grid to continue to ensure year-round reliability, employing the workforce necessary to achieve a clean-energy transition, addressing inflation and supply chain issues, and providing a fair return on investment to attract capital for continued investments in the clean-energy future.
More information on the rate proposal is at https://www.mnpower.com/RateReview.
Minnesota Power provides electric service within a 26,000-square-mile area in northeastern
ALLETE, Inc. is an energy company headquartered in
Minnesota Power calculates and reports carbon emissions based on the GHG Protocol. Details are in ALLETE’s Corporate Sustainability Report.
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024040203/en/
Amy
Director - Corporate Communications
Minnesota Power/ALLETE
218-723-7400
arutledge@mnpower.com
Source: ALLETE Inc.
FAQ
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