Rate Changes We have implemented changes to energy rates for most customers, and demand rates for larger commercial and industrial customers. The monthly service charges do not change for residential and small commercial/industrial customers. However, the monthly service charge for residential customers will no longer include the first 50 kWh of energy usage. The biggest change is the implementation of new energy block rates for residential customers. Instead of two rate levels for energy usage, there will now be five. The new block rates are intended to encourage conservation and result in a lower price of energy for customers who use less electricity. The separate line item for Boswell 3 Environmental will no longer appear on your bill. The Transmission Adjustment will continue as a separate line item. How the changes affect your bill will vary depending on the amount of electricity you use.
Customer Notice of New Electric Rates New Electric Rates Begin With Usage on
June 1, 2011
Interim Rate Surcharge Under state law, Minnesota Power was allowed to collect an interim (temporary) rate increase while the MPUC considered our 2009 rate request. The interim increase of $48.5 million annually took effect on January 1, 2010. The MPUC’s final decision in Minnesota Power’s rate case resulted in a total retail rate increase of $53.5 million annually. Since the final rate increase is more than the amount collected during the interim rate period, Minnesota Power will collect the difference back to the November 2, 2010 Commission Order date, without interest, on your July or August bill. The interim rate surcharge amount will be applied across-the-board to all customer classes and will result in a one-time charge of about $5.40 for a typical residential customer (based upon 771 kWh average monthly usage).
For More Information For more information about the new electric rates, please visit: www.mnpower.com or inquire at Minnesota Power by calling 218.722.2625 or 800.228.4966.
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On November 2, 2009, Minnesota Power filed a request with the Minnesota Public Utilities Commission (MPUC) for an electric retail rate increase of $80.9 million annually or 18.9 percent. The company later reduced its original request to $72 million. The MPUC issued its final Order in the 2009 rate case on November 2, 2010, approving a $53.5 million final increase, or an 11.34 percent average overall change in retail rates. The allowed percent increase varies by customer class. The approved rates will increase a typical residential customer’s bill by about 4 percent over previous rates in effect prior to January 1, 2010. The MPUC approval increased electric rates for all customer classes. The amounts of these increases are explained in the tables inside this Notice.