St. Paul, Minnesota — The Minnesota Public Utilities Commission (Commission) approved reduced interim rate increases for Minnesota Power (MP) and CenterPoint Energy (CPE) customers yesterday and started the public review process for the proposed rate increases. Both utilities filed formal requests for general increases in rates in early November 2021. Minnesota law authorizes public utilities to recover an interim rate while the Commission evaluates the full rate request. The Commission approved an interim rate increase of 7.1% for MP residential electric customers and a 3.9% interim rate increase for CPE’s residential natural gas customers, down from proposed increases of 14.2% and 5.1%, respectively. 

The Commission referred the MP and CPE matters to the Office of Administrative Hearings to continue the public review of the proposals. As part of the public review process, interested members of the public may provide input during the upcoming written comment period and at the public hearings. The Commission will review the record, including the public comments, before making final decisions, expected in fall (CPE) and winter (MP) 2022. 

“Setting utility rates is one of the core functions of the Commission,” said Commissioner John Tuma. “When the Commission makes its final decision, it has to balance the impacts of a proposed rate increase on ratepayers and the financial needs of utilities to ensure the safe delivery of the energy we need. To accomplish this best, we need members of the public to weigh in and inform the Commission about how a proposal will impact their lives.” 

MP originally proposed a 14.2% interim rate increase but proposed to cut it in half for residential customers after reaching an agreement with consumer advocates. The average MP residential customer will see an interim rate increase of approximately $5.89 a month. CPE initially requested a 5.1% interim rate increase, but it was reduced yesterday. Interim rates for both proposals will start in January 2022 and will be in effect until the final rates are established by the Commission. If the final rates are lower than the interim rates, customers will see refunds. 

“The Commission knows that rate increases have a big impact on ratepayer’s monthly budgets,” said Commissioner Joseph Sullivan. “We worked hard and successfully found creative solutions to mitigate the monthly increases that a customer will see.” 

Minnesota Power’s overall request asked to increase electricity rates by 17.58%, or $108.3 million. Under this proposal, the typical residential customer would see an increase of approximately $15.08 a month. CPE’s proposal would increase natural gas rates by 6.5%, or about $67.1 million. The average CPE residential customer would see a monthly increase of about $4.05. 

For additional information about the rate review process please visit the Commission’s website, https://mn.gov/puc/activities/financial-analysis/general-rate-case/. 

About 

The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy; electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional, and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc Please contact Will Seuffert, 651-201-2217 or will.seuffert@state.mn.us if you have any questions. 

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