Legislative action is pushing rates higher.
Recent decisions by both our state and federal governments have required us to implement significant additional environmental protection standards. Mandates governing renewable energy have changed the way power is and will be produced. To carry out these mandates, purchase the required technology and build the necessary infrastructure, a rate increase is unavoidable.

Minnesota’s Next Generation Energy Act requires electric utilities to generate 25 percent of their energy from renewable sources—primarily wind—by 2025. In addition, the federal government is requiring much tougher emission standards. We’re proud that our emissions are already well below permitted levels, and we’re on schedule to meet the new requirements ahead of the deadline.

We believe in keeping our communities healthy. In fact, we’ve been leaders in cleaner energy for generations, harnessing water’s powerful potential since 1906. It’s a legacy we want to continue. But it costs more money.

More on our environmental initiatives

Market power purchase costs continue to rise.
When we shut down a generating plant to perform maintenance, we have to replace its output with electricity purchased on the open market, which is far more expensive than the electricity we produce. We’re authorized to recover costs for things like market power purchases and higher fuel prices through a line-item adjustment on your bill. As these expenses rise, so does the price of power.

Ultimately, by maintaining our coal-fired plants and making them even cleaner, we are preserving our lowest cost generating fleet, which helps us limit the amount of power we produce or purchase from more expensive sources.

Our infrastructure is aging—and demand is setting records.
We’ve been generating and delivering power for over a century, and the demand on our systems has never been higher. You expect your power to be reliable, and we’re proud of our track record. Because of new technologies and sophisticated products like upscale kitchen appliances, air conditioners and mp3 players—things that make our lives easier, more comfortable or just more fun—people are using more power than ever before.

Every year, we’re putting $90 million, on average, toward generation and transmission upgrades. We’re also spending $25 million annually on the power lines that serve your homes and businesses, to preserve these assets and ensure a high degree of reliability.

Operating expenses have been going up-just as in every business.
The rate increase will cover rising costs associated with operating expenses such as fuel and employee health care.