The Minnesota Public Utilities Commission (MPCU) on Thursday, Oct. 24, approved a settlement agreement on Minnesota Power’s proposed 2024 electricity rates. This settlement will reduce rates for all customers beginning in early 2025.

“The MPUC approved a final rate increase of approximately 4.9% over 2023 rates for residential and small
business customers, or about $5 per month for the average residential customer, and about 4.4%
above 2023 for industrial and large commercial customers,” explained Amy Rutledge, director of corporate communications. “The final rate is lower than the interim increase of 8.6% that came into effect in January this year, meaning residential customers will see a slight reduction in their monthly bills. »

Rutledge added that the difference between the interim rate and the final rate will be refunded to all customers with interest.

The approval will also set Minnesota Power’s return on equity at 9.78%.

“We greatly appreciate the hard work of our team and stakeholders, as well as the work of the commission.
recognition that this pricing settlement agreement represents the best outcome, with benefits for our customers,
our communities, the climate and our business,” said Bethany, President and CEO of ALLETE.
Owen. “We all need to work together: regulators, legislators, our customers, our communities,
and many more – to achieve a clean energy transition that is truly sustainable for all. This
agreement strikes balance, with beneficial outcomes for customers while keeping Minnesota
Power is on the right track as it strives to meet the state’s ambitious climate goals.

Minnesota Power provided additional information on the rate proposal here.