St. Paul, Minnesota — The Minnesota Public Utilities Commission (“Commission”) took action today on the petition by Minnesota Energy Resources Corporation (“Minnesota Energy Resources” or “MERC”) for a general increase in its natural gas rates.

Minnesota Energy Resources provides retail natural gas service to approximately 236,000 customers in 70 counties and 193 communities in Minnesota. MERC is a subsidiary of WEC Energy Group, Inc., which also owns six other natural gas and electric utilities in Wisconsin, Illinois, and Michigan.

Minnesota Energy Resources filed its petition in this rate case on October 13, 2017, initially asking for an increase in natural gas rates of $12.6 million, or 5.05%. MERC filed Supplemental Direct Testimony on February 28, 2018 and estimated that the 2017 Federal Tax Act (Tax Cut and Jobs Act) reduced its request by approximately $5.3 million to a rate increase request of $7.3 million. An Administrative Law Judge (ALJ) from the Office of Administrative Hearings conducted public hearings, evidentiary hearings, and issued his report with recommendations to the Commission on September 21, 2018. The ALJ’s recommendations (as initially interpreted by MERC) would have resulted in an approximate $3.8 million increase, or approximately 1.53%.

The Commission’s decisions on the issues presented in this case will reduce the overall amount of the allowed increase from the amount recommended by the ALJ. The amount of the increase authorized by the Commission will be approximately $3.1 million, or approximately 1.26%.

The Commission also adopted the Office of Attorney General’s proposed revenue allocation, which will further reduce the rate impact on residential customers.

As allowed by Minnesota Statutes, Minnesota Energy Resources is currently charging interim rates, implemented on January 1, 2018 and then reduced on April 1, 2018 to reflect the Tax Cut and Jobs Act. Once the financial impact of all of the decisions made today is calculated, if final rates are lower than these interim rates, customers will receive a proportionate refund of the difference, with interest.

A written order formally documenting the Commission’s decisions will be issued in December. This order will be filed in Docket No. G-011/GR-17-563, which is available on the Commission’s website via the Commission’s e-Dockets system.

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