General Rate Cases
Setting utility rates
One important job of the Minnesota Public Utilities Commission is to set just and reasonable rates that electric and natural gas companies can charge their customers. Rate changes are approved in a process called a “rate case”, which, after a comprehensive review of the utilities’ investments and expenses, results in a Commission determination of how much these companies should charge.
The Commission regulates all investor owned electric and natural gas utilities in Minnesota. It does not regulate municipal utilities or cooperatives, however, a cooperative can choose to have its rates regulated by the Commission.
How a rate case works
A rate case starts when a regulated utility requests the Commission to authorize it to raise its rates. Generally, the Commission has 10 months to decide on this request, however, that deadline can be extended. During this time, Commission staff and other stakeholders examine the company’s proposal, including how different groups of customers, like residential and businesses and industrial, will be affected by the rate increase.
While a utility’s rate increase request is under review, the utility is allowed to collect interim rates that are subject to refund. If the Commission-approved final rates are lower than interim rates, customers get a refund. If the Commission approved final rates are higher than interim rates, customers do not get a surcharge for the period interim rates were in effect.
Like how a judge works in a courtroom, an Administrative Law Judge (ALJ) runs the rate case process. The ALJ sets a procedural schedule, reviews testimony from different parties, oversees questioning of witnesses and ultimately issues a report making recommendations to the Commission.
Groups of people who get involved, called intervenors, can provide testimony, question witnesses, and submit legal documents. The public can also share their opinions without intervening during comment periods and at public hearings. Visit our public participation page to learn how to get involved.
Rate case process
Rate increase review standards
The Commission must set just and reasonable rates for utilities. According to Minnesota law, the Commission looks at how much money utilities need to cover their costs to provide adequate, efficient, and reasonable service to ratepayers, including an opportunity to earn a reasonable rate of return. The Commission sets rates to recover these costs, balancing the needs of utility companies and ratepayers who pay for their services.
The utility company must prove that the money it wants to collect in rates is necessary and reasonable. If the utility can’t prove that any of its costs—like tree trimming, employee pensions, or other new investments—are needed, the Commission will not allow those costs to be included in the rates. These adjustments, known as “disallowances,” happen regularly.
Active rate case dockets
CenterPoint Energy's natural gas rate case meetings begin October 16. To learn more, go here
Greater Minnesota Gas' natural gas rate case meetings begin soon. To learn more, go here
Xcel Energy's electric rate case meetings begin soon. To learn more, go here
Dakota Electric's electric rate case meetings begin soon. To learn more, go here
Recent rate cases
| Utility | Docket Number | Filing Date | Order Date/Status |
| CenterPoint | 23-173 | 11/01/23 | MYRP settled - Commission meeting expected May/June |
| Dakota Electric | 24-400 | 12/30/24 | active - Direct testimony in April |
| Great Plains | 19-511 | 09/27/19 | 10/26/20 |
| Greater Minnesota Gas | 24-350 | 11/01/24 | active - Direct testimony in February |
| MERC | 22-504 | 11/01/22 | 11/14/23 |
| Minnesota Power | 23-155 | 11/01/23 | 11/25/24 |
| Otter Tail | 20-719 | 11/02/20 | 02/02/22 |
| Xcel - Electric | 24-320 | 11/01/24 | active - Direct testimony in August |
| Xcel - Gas | 23-413 | 11/01/23 | settled - Commission Order pending |
Learn more
