2019 Rate Review
Like other businesses, we experience increasing costs to deliver our product, which is safe, reliable and increasingly renewable energy, to our customers. Unlike most other businesses, we need regulatory approval to increase rates, so we filed a rate review request on Nov. 1 with the independent Minnesota Public Utilities Commission (MPUC) to increase our annual operating revenue to $688 million, an increase of $65.9 million, and adjust rates for our business and residential customers.
As a regulated utility, we file a rate review request when the revenue we receive from providing safe and reliable electricity does not match the expense of producing that energy, including a reasonable return for investors.
Rates are set through a transparent process with the MPUC that regulates investor-owned electric utilities in Minnesota. The proceedings include opportunities for public input and participation during the process.
We are required to provide a detailed forecast of how we would structure our operations and make investments. The MPUC then reviews the information, with public input from customers, business groups, agencies, and other stakeholder organizations before making a decision.
The MPUC’s open and transparent process will include at least one local public hearing where customers can speak to an administrative law judge overseeing the rate review process. Written comments are accepted on the MPUC website at mn.gov/puc. We also encourage customers to give feedback directly to us by emailing AskUs@mnpower.com.
We know that for our customers there’s no right time for a rate increase. But we think we’re on the right track in building a safe, reliable and cleaner energy future — and this rate review will support those efforts.
We’re committed to delivering a safe, reliable and clean energy future while keeping rates affordable for our customers
Under our EnergyForward strategy, we have invested extensively to transform the way we produce and deliver your power. We’ve strengthened the safety and reliability of the power grid, added renewable energy resources, significantly reduced emissions at our remaining traditional power plants, and added new tools for you to manage your energy use and lower your bill.
- We’re on track to deliver 50 percent of your power from renewable sources in 2021, a little more than one year away, moving faster and further on renewables than any other Minnesota utility.
- By 2021 we will also cut our carbon dioxide emissions by 50 percent over 2005 levels.
- We will add more than 500 megawatts of wind power and hydropower to our energy mix by 2021 to reach 50 percent renewable and a 50 percent carbon reduction.
- We have closed or refueled seven of nine coal units.
- Our conservation program has exceeded state energy conservation goals for nine straight years.
- We’re Minnesota’s largest hydropower producer and were ranked the No. 2 investor in renewable energy, relative to size, among U.S. and Canadian utilities.
- Our proposed Nemadji Trail Energy Center natural gas power plant would be an important backup energy source when renewables can't meet regional needs, and also will enable the addition of more renewable energy sources.
- EnergyForward is working for you, keeping your energy safe and reliable while reducing carbon emissions.
- We’ve done all of this while keeping our average residential rate the lowest in Minnesota.
2019 Rate Review Filing
Volume 1 - Notice of Change in Rates – Interim Petition
- Interim Jurisdictional Financial Summary Schedules
- Proposed Interim Rates Schedules
- Comparison of Proposed Interim Rates to Most Recent General Rate Case
- Comparison of Proposed Interim Rates to Most Recent Fiscal Year
- Comparison of Proposed Test Year to Most Recent General Rate Case
- Comparison of Proposed Interim Rates to Proposed Test Year
Volume 2 - Direct Testimony and Supporting Schedules
Frank L. Frederickson
Frank L. Frederickson
Large Power Customer Outlook
Patrick L. Cutshall
Capital Structure, Cost of Capital, Retirement Plan Accounting, and Tax
Ann E. Bulkley
Return on Equity
Joshua G. Rostollan
Budgeting, Cost Allocations, and Expenses
Benjamin S. Levine
Julie I. Pierce
Power Supply Strategy and Wholesale Margins
Joshua J. Skelton
Daniel W. Gunderson
Transmission and Distribution
Laura E. Krollman
Employee Compensation and Benefits
Stewart J. Shimmin
Jurisdictional Costs, Class-Cost-of-Service Study, and Cost Recovery Riders
Marcia A. Podratz
Revenue Requirements and Rate Design