State of Minnesota Public Utilities Commission
May 19,2011
To: From:
Official Service List Burl W. Haar
Executive Secretary
Re:
In the Matter of the Application of Minnesota Power for Authority to Increase Rates for Electric Service in Minnesota Docket No. E-015/GR-09-1151
Approval of Customer Notice for Final Rates
In its December 30, 2009 NOTICE AND ORDER FOR HEARING, the Commission delegated authority to its Executive Secretary to approve customer notices and bill inserts for the duration of this proceeding. In its November 2, 2010 FINDINGS OF FACT, CONCLUSIONS, AND ORDER, the Commission required Minnesota Power to submit in its compliance filing a proposed customer
notice that explains the final rates, the monthly basic service charges, and the expanded inclining block energy charges for residential customers, authorized in this matter.
On March 9, 2011, Minnesota Power submitted a proposed customernotice with its compliance filing. Since then, Minnesota Powerhas revised its proposed notice to include an explanation of the interim rate surcharge authorized in this matter.
This notice, as revised (please see attached) is approved and may be used as a customer bill insert.
This document can be made available in alternative formats (i.e., large print or audio) by calling 651-296-0406 (voice). Persons with hearing or speech disabilities may call us through Minnesota Relay at 1-800-627-3529 or by dialing 711.
Attachment
www.puc.state.mn.us
PI [ONE (651) 296-7124 • 800-657-3782 • tax (651) 297-7073 • 121 7,h Place East • Suite 350• Saint Paul, Minnesota 55101-2147
Rate Changes We have implemented changes to energy rates for most customers, and demand rates for larger commercial and industrial customers. The monthly
service chargesdo not change for residential and
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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 implementationof 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 seperate line item. How the changes affect your bill will vary depending on the amount of electricityyou use.
Customer Notice off New Electric Rates
New Electric Rates Begin With Usage on
June 1,2011
Interim Rate Surcharge
final rate increase is more than the amount collected
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
during the interim rate period, Minnesota Power will
a $53.5 million final increase, or an 11.34 percent
collect the difference back to the November 2,2010
average overall change in retail rates. The allowed percent increase varies by customer class.
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
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.
J-55403EDB11
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.
Final Rates Final rates will go into effect for electric service rendered on and after June 1,2011. The following table shows how the new electric rates will affect monthly billsfor an average customer in each customer class. The monthly increase amounts include all line items on customer bills, including the cost of fuel, purchased power and most riders, but do not includesales taxes and municipal franchise fees. These amounts may vary by individual customer based on energy usage.
Change in Monthly Electricity Bills Average Monthly kWh Usage
Customer Classification Residential Seasonal Residential
Average Monthly Bill— Previous Rates
S67 S39 S98 $73 S233 S313 31,446
771
333
Residential Controlled Access Dual Fuel—Residential
General Service Dual Fuel—Commercial and Industrial
Municipal Pumping Large Light and Power Large Power Street and Area Lighting
1,699 1,143 2,706 5,609 19,719 196,301 53,259,874
$12,810 $2,434,586
404
S53
Monthly Increase $3 $1 $4 $7 $13 S33 S155 $1,288 $349,718 57
Commercial & Industrial Service
Residential Service Customer Classification
Current
New
Rates
Rates
Customer Classification
Current
New
Rates
Rates
$10.50
$10.50
$10.50
$10.50
$10.50
$10.50
Min. Monthly Service Charge—
Min. Monthly Service Charge— $/month (no change)
$/month (no change)
Residential Residential—Seasonal Residential—Controlled Access Residential—Dual Fuel
S8.00 S8.80 $8.00 $8.00
$8.00 S8.80 $8.00 $8.00
The new blocks of energy usage per month and the associated cost per kWh are shown in the table below. The new block rates, ordered by the MPUC, are intended to encourage conservation, resulting in energy savings.
General Service
(with or without demand meter) C &I (Dual Fuel Service and Controlled Access Service) Municipal Pumping (with or without demand meter) Customer Classification
Current
New
Rates
Rates
$.07084
S.07854
S.05020
$4.87
$.05306 S5.86
$.04300 $.04025
$.05196 S.04809
$.07854
$.07854
S.04284
S.05181 $6.20
Energy Rates—$/kWh
Customer Classification
Current
New
Block Rate
Rates
Rates
Levels
Energy Rates—$/kWh Residential 0-50 kWh 51-300kWh
$.05116 $.05116
1st
$.04773
301-350 kWh 351-500 kWh
$.04773 $.08004
$.06753 $.06753
2nd
$0.00
501-750kWh
$.08004
$.08186
3rd
751-1,000 kWh
$.08004
$.08463
4th
Over 1,000 kWh
$.08004
$.08955
5th
$.07574
$.08253 $.04350 $.05196
Residential—Seasonal Residential—Controlled Access
Residential—Dual Fuel
$.03943 $.04300
General Service
without demand meter ($/kWh) with demand meter
energy charge ($/kWh) demand charge ($/kW) C & I Dual Fuel Service ($/kWh) low voltage high voltage Municipal Pumping without demand meter ($/kWh) with demand meter
energy charge (S/kWh) demand charge (S/kW)
S5.81
CERTIFICATE OF SERVICE
I, Margie DeLaHunt, hereby certify that I have this day, served a true and correct copyof the following document to all persons at the addresses indicated below or on the attached list by electronic filing, electronic mail, courier, interoffice mail or by depositing the same enveloped with postage paid in the United States mail at St. Paul, Minnesota. Minnesota Public Utilities Commission
APPROVAL OF CUSTOMER NOTICE FOR FINAL RATES Docket Number
E-015/GR-09-1151
Dated this 19th day of May, 2011
/s/ Margie DeLaHunt
Company Name
First Name
Last Name
Julia
Anderson
Julia.Anderson@state.mn.u Office of the Attorney s
General-DOC
Address
Delivery Method
View Trade Secret
Service List Name
1400 BRM Tower
Electronic Service
Yes
OFF_SL_91151_contested case list 2
Electronic Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151 _contested case list 2
Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Electronic Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_9-
445 Minnesota St
St. Paul. MN 551012131
Christopher
Anderson
canderson@allete.com
Minnesota Power
30 W Superior St Duluth, MN
558022191 Thomas
Bailey
tbailey@briggs.com
Briggs And Morgan
2200 IDS Center 80 S 8th St
Minneapolis, MN 55402
Richard
Boise Cascade Corporation
Baxendale
926 Harvard Avenue East
Seattle, WA
98102 John
Hibbing Taconite Company
Berklich
PO Box 589
Hibbing, MN
55746 William A.
Blazar
bblazar@mnchamber.com
Minnesota Chamber Of Commerce
Paper Suite 1500 400 Robert Street Nor :h St. Paul, MN 55101
Bill
Bond
william.bond@arcelormittal. com
ArcelorMittal USA Minorca Mine Inc.
PO Box 1
5950 Old Highway 53 Virginia, MN 55792
Elizabeth
Brama
ebrama@briggs.com
Briggs and Morgan
2200 IDS Center 80 South 8th Street
Minneapolis, MN 55402
Greg
Chandler
greg.chandler@upmkymmene.com
UPM Blandin Paper
115 SW First Street
1151_contested case list 2 Grand Rapids, MN 55744
Scott
Coleman
Minnesota Ore Operations
P.O. Box 417
Paper Service
No
OFF_SL_9-
1151_contested case list 2
- U.S. Steel
Mountain Iron, MN 55768
Michael
Darland
Sappi Fine Paper North
225 Franklin Street
Paper Service
No
OFF_SL_9-
1151_contested case list 2
America
Boston, MA 2110
First Name
Last Name
Company Name
Address
Delivery Method
View Trade Secret
Service List Name
Lloyd
Estrabillo
Lsestrabillo@uss.com
United States Steel Corp
600 Grant Street Suite 2028
Paper Service
No
OFF_SL_91151_contested case list 2
Electronic Service
Yes
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Yes
OFF_SL_91151_contested case list 2
Electronic Service
Yes
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_9-
Pittsburgh, PA 15219 Sharon
Ferguson
sharon.ferguson@state.mn Department of Commerce
85 7th Place E Ste 500
.us
Saint Paul, MN
551012198 Ronald M.
Giteck
ron.giteck@state.mn.us
Office of the Attorney
Residential Utilities Division
Genera!-RUD
445 Minnesota Street, 900 BRM Tower
St. Paul. MN 55101
Elizabeth
Goodpaster
bgoodpaster@mncenter.or
MN Center for
9
Environmental Advocacy
Suite 206 Paper Service 26 East Exchange Str set St. Paul. MN 551011667
BurlW.
Haar
burl.haar@state.mn.us
Public Utilities Commission
Suite 350 121 7th Place East
St. Paul, MN 551012147
Samuel
Briggs And Morgan, P.A.
Hanson
2200 IDS CenterE
1151_contested case list 2
80 South Eighth Stree: Minneapolis, MN
55402 Shane
Henriksen
shane.henriksen@enbridge Enbridge Energy Company, 1409 Hammond Ave FL 2 .com
Electronic Service
No
OFF_SL_91151_contested case list 2
Electronic Service
Yes
OFF_SL_9-
Inc.
Superior, Wl 54880 Linda S.
Jensen
linda.s.jensen@state.mn.us Office of the Attorney General-DOC
1400 BRM Tower 445 Minnesota Street
1151_contested case list 2
St. Paul, MN
551012131
Nancy
Lange
midwestoffice@iwla.org
Izaak Walton League of America
Suite 202
1619 Dayton Avenue St. Paul, MN
55104
Paper Service
No
OFF_SL_9-
1151_contested case list 2
First Name
Last Name
Company Name
Address
Delivery Method
View Trade Secret
Service List Name
Robert S
Lee
RSL@MCMLAW.COM
Mackal! Crounse & Moore Law Offices
1400 AT&T Tower
Paper Service
Yes
OFF_SL_91151_contested case list 2
Electronic Service
Yes
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
Yes
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151 _contested case list 2
Paper Service
No
OFF_SL_9-
901 Marquette Ave Minneapolis, MN
554022859 John
Lindell
agorud.ecf@state.mn.us
Office of the Attorney General-RUD
900 BRM Tower 445 Minnesota St
St. Paul. MN 551012130
Jay
Lofgren
jaylofgren@boisepaper.co
Boise, Inc.
Paper Division 400 - 2nd Street
m
International Falls, MN 56649
Sarah
Sappi Fine Paper North
Manchester
225 Franklin Street
America
Boston, MA 2110
Pam
Marshall
pam@energycents.org
Energy CENTS Coalition
823 7th St E
St. Paul, MN 55108 Keith
Matzdorf
keith.matzdorf@sappi.com
Sappi Fine Paper North America
PO Box 511 2201 Avenue B
Cloquet, MN
55720 David
Minnesota Power
McMillan
30 W. Superior Street Duluth, MN 55802
Andrew
Moratzka
apm@mcmlaw.com
Mackall, Crounse and Moore
1400 AT&T Tower
901 Marquette Ave Minneapolis, MN 55402
Richard L.
Sappi Fine Paper North
Morgan
America
P.O. Box 511 2201 Avenue B
Cloquet. MN 55720
Marcia
Podratz
mpodratz@mnpower.com
Minnesota Power
30 W Superior S
1151_contested case list 2 Duluth, MN 55802
First Name
Last Name
Laura
Schlatter
Company Name
Address
Delivery Method
View Trade Secret
Service List Name
Laura.Schlatter@state.mn.
Office of Administrative
P.O. 64620
Electronic Service
Yes
OFF_SL_9-
us
Hearings
1151_contested case list 2 Saint Paul, MN
55164 William
USG Interiors, Inc.
Schmidt
35 Arch Street
Paper Service
No
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Electronic Service
No
OFF_SL_91151_contested case list 2
Electronic Service
Yes
OFF_SL_91151_contested case list 2
Paper Service
No
OFF_SL_91151_contested case list 2
Cloquet, MN 55720 Joe
PolyMet Mining, Inc.
Scipioni
P.O. Box 475
County Highway 666 Hoyt Lakes, MN 55750 Janet
Shaddix Elling
jshaddix@janetshaddix.co
Shaddix And Associates
Ste 122
9100 W Bloomington I:rwy Bloomington,
m
MN 55431 Kathleen D.
Sheehy
kath!een.sheehy@state.mn
Office of Administrative
.us
Hearings
PO Box 64620
St. Paul, MN 551640620
Jeremy
Smolich
Keetac
PO Box 217
Keewatin, MN
55753