We filed a request with the North Dakota Public Service Commission (PSC) to increase our electric rates. The filing starts a nearly year-long process, often referred to as a rate case. During this time the PSC reviews costs we incur to provide you with energy and related services and then determines appropriate prices. This independent, public process helps ensure transparency and fair rates for all customers.
Rising costs primarily drive request
We last filed for a base rate increase in North Dakota in 2017. This request is a result of increased costs to maintain a safe and reliable system while meeting growing electricity demand. Changes in our company’s customer mix also contribute to the timing of our request.
“We recognize our customers’ costs have gone up in many parts of their lives,” said President Tim Rogelstad. “While we’ve successfully managed expenses and continue to choose low-cost options to meet our customers’ needs, the cost of providing service is more than we can recover through our current base rates. Reviewing and updating our rates through rate cases allows us to continue to cost-effectively provide the reliable electricity our customers depend on.”
We requested permission for an increase to rates of approximately $40.6 million. A portion of this amount, $23.3 million, is already being billed to you via riders, which allow utilities to recover certain costs between rate cases. If the PSC approves our overall request as filed, the net increase to you would be 8.43%.
Interim rates likely effective January 1
While the PSC considers our overall request, we asked to increase rates by a net of $12.4 million on an interim basis beginning January 1, 2024. If the PSC approves the interim rate increase, the net interim rate increase for you would be 6.03% and interim rates would likely remain in effect until late 2024.
If final rates are lower than interim rates, we'd refund the difference with interest. If final rates are higher than interim rates, we wouldn't collect the difference. You'll receive information with your electric service statement in January showing the example interim monthly bill impacts for various customer types.
The PSC will hold public hearings related to the request and post the hearing schedule at psc.nd.gov.
Interim rate information, the PSC hearing schedule, and updates related to our request will be available online at otpco.com/NDRateCase.
Programs help you save energy and money
We encourage you to proactively save energy and money by:
“We’ll continue providing options to help customers manage their energy use while we work to manage the increasing costs of energy supply,” said Rogelstad. “We also offer payment arrangements and information on energy assistance programs for customers in need.”