North Dakota Energy and Renewable Adjustment

The Energy Adjustment includes the cost of fuel we use to generate electricity to serve our retail customers, transportation costs for that fuel, and costs we incur to buy energy to supplement our own power plants, minus a base cost for energy that already is part of the per-kilowatt-hour rate you pay. As of December 2009 asset-based sales margins are included as a credit to the Energy Adjustment calculation. 

The Renewable Resource Adjustment allows our company to recover costs associated with renewable energy facilities that we own. Those costs include operating and maintenance expenses, depreciation, income and property taxes, and a return on our investment. The energy generated by these facilities reduces the amount of fossil fuel and purchased energy necessary to meet our customers' needs.

As of January 2011 the Economic Development Rider included on your electric service statement reflects a 0.025 cent per kWh reduction. This reduction is the result of the North Dakota Public Service Commission requesting in our last rate case that we remove from rates the costs associated with our economic development services. 

The Transmission Cost Recovery Rider is a mechanism that allows our company to recover investments and expenses for transmission additions designed to meet customers' growing energy needs, accommodate the delivery of additional renewable energy, and enhance transmission system reliability.