This is the second rate increase granted to Minnesota Power in two years. In January 2023, the PUC granted a 9.5% increase. That was also much smaller than what the company wanted, though higher than what some consumer advocates asked for.
More than 650 people wrote to the PUC about the rate increase, most in opposition. Many were dated prior to or just after the settlement was announced publicly. Matthew Laveau of Wrenshall said “these added costs are not sustainable to their customers.”
Gretchen Matuszak of Esko wrote she is retired and can hardly keep up with her electric bill as it is now. “You sure make it tough for us old timers!” She wrote. “Give us a break!”
Allete CEO Bethany Owen during a Minnesota Public Utilities Commission meeting in St. Paul, Minn., on Thursday May 9, 2024. ] RENEE JONES SCHNEIDER • renee.jones@startribune.com (Renée Jones Schneider/The Minnesota Star Tribune)
Minnesota Power has about 150,000 customers across northeastern Minnesota. It serves energy-hungry iron mines, pipelines and the paper industry, all of which make up nearly 70% of the utility’s energy sales.
The company has the lowest monthly bills for the average residential customer of Minnesota’s three investor-owned utilities, and its electric rates for those customers are below the national average, according to 2022 data, the latest reported by the PUC. Its prices for commercial and industrial customers are higher than neighboring states, however, and 95% of the national average.
The utility has shifted its power mix from 95% coal in 2005 to nearly 60% renewable energy now as it works to meet a state law requiring a carbon-free electric grid by 2040.