Rate Case Roundup: North Dakota

The North Dakota Public Service Commission granted an electric utility, Montana-Dakota Utilities Company (MDU), only about 55% of its request for rate relief. Thus, rather than the $13.4 million in additional revenues sought, the utility was allowed to raise its rates by only $7.5 million.

In that MDU had already implemented an increase of $11.7 million on an interim basis, the commission directed the company to credit ratepayers the difference on their next bills. Thereafter, the commission said, the average residential customer is likely to see an increase of approximately $4.50 per month.

The commission's ruling was in line with a settlement tendered in the matter. In that agreement, the parties reached consensus on a 9.65% ROE, which translates into an overall return of 7.364%. They also recorded agreement on several riders, including one covering expenses associated with three wind energy projects. The signatory parties similarly assented to continuation of a rider through which MDU recovers costs associated with regional transmission needs. Yet another rider relates to capital investments in the Lewis and Clark reciprocating internal combustion engine generation projects.

The settlement reflects the fact that MDU has in place a somewhat nontraditional basic service charge applicable to residential customers. The commission related that the utility assesses the fee on a daily basis as opposed to a monthly basis, as most customer charges are structured. Under the approved settlement, that daily residential basic service charge will rise from 35 cents to 46 cents per day. Re Montana-Dakota Utilities Co., Case No. PU-16-666, June 16, 2017 (N.D.P.S.C.).