North Dakota Rate Review

In November 2017 we asked the North Dakota Public Service Commission (NDPSC) to first review the costs we incur to provide our customers with energy and related services and then determine how much our customers should pay for those services.

Drivers

As the second smallest investor-owned utility in the country, our size gives us unique perspective into the small, rural communities we serve. With those communities and customers in mind, we make smart, innovative business decisions to ensure the price they pay for reliable energy and top-notch customer service will continue to be among the lowest in the country.

Stronger, cleaner infrastructure Smarter technologies Rising costs
Required environmental technologies at coal-fired Big Stone Plant will allow us to continue using this baseload resource well into the future. Transmission projects are efficiently moving energy produced in this region and improving reliability of the energy grid. Technologies will allow customers to get more for their energy dollar. For example, our new Customer Information System will allow customers more access and options related to their energy use and our services. The NDPSC established our current rates almost a decade ago (2009 rates based on 2007 costs).

How this will impact customers

The NDPSC granted us a revenue increase of approximately $4.6 million—excluding certain costs that we're currently recovering in riders but will move to base rates—to help pay for investments in infrastructure and technology and rising costs associated with providing safe, reliable, environmentally responsible electricity. New rates begin in January 2019. We expect an average residential customer's monthly bill to increase by approximately $5.50 and an average business customer’s monthly bill to increase by approximately $7.

Filing Documents

Volume 1: Notice of Change in Rates – Interim Rate Petition

  • Filing Letter
  • Notice of Change in Rates
  • Alternative Petition for Interim Rates
  • Interim Supporting Schedules and Workpapers
  • Summary of Present and Interim Revenue
  • Interim Tariff Sheets – Legislative
  • Interim Tariff Sheets – Non-Legislative

Volume 2A: Direct Testimony and Supporting Schedules

  • Bruce G. Gerhardson
    • Policy
  • Stuart D. Tommerdahl
    • Capital Projects
    • Corporate Costs
    • ADIT Proration
  • Bryce C. Haugen
    • Rider Roll in
  • Gina S. Ice
    • Jurisdictional and Class Allocators
    • Class Cost of Service Study
    • Class Revenue Responsibilities
  • Tyler A. Akerman
    • Rate Base
    • Operating Statement
    • Capital Budgeting Process
  • Christine L. Petersen
    • Budget Process
    • Operations and Maintenance Expenses
    • Pension and Post Employment Expenses

Volume 2B: Direct Testimony and Supporting Schedules

  • Kevin G. Moug
    • Financial Soundness
    • Capital Structure
    • Cost of Capital
  • Robert B. Hevert
    • Return on Equity
  • Kirk A. Phinney
    • Big Stone AQCS and Hoot Lake MATS Capital Projects
  • David G. Prazak
    • Rate Design

Volume 2C: Direct Testimony and Supporting Schedules

  • Brian H. Draxten
    • Sales and Revenue Forecast
  • Peter E. Wasberg
    • Employee Compensation

Volume 2D: Proposed Legislative and Non-Legislative Tariff Sheets

  • Proposed Tariff Sheets – Legislative
  • Proposed Tariff Sheets – Non-Legislative

Volume 3: Supporting Information

A. Jurisdictional Financial Summary Schedules

1. Summary of Revenue Requirements – 2018 Test Year

2. Summary of Revenue Requirements – Jurisdictional

B. Rate Base Schedules

1. Rate Base Summary

2. Rate Base Components – 2018 Test Year

3. Rate Base Components - 2018 Test Year to Most Recent General Rate Case

4. Cash Working Capital

5. Rate Base Adjustments

6. Summary of Approaches and Assumptions Used

7. Rate Base Jurisdictional Allocation Factors

C. Operating Income Schedules

1. Jurisdictional Statement of Operating Income

2. Statement of Operating Income - Jurisdictional

3. Statement of Operating Income – 2018 Test Year

4. Statement of Operating Income – 2018 Test Year to Most Recent

General Rate Case

5. Computation of Federal and State Income Taxes

6. Computation of Deferred Income Taxes

7. Development of Federal and State Income Tax Rates

8. Operating Income Statement Adjustments Schedule

9. Summary of Approaches and Assumptions Used

10. Operating Income Statement Allocation Factors

D. Rate of Return / Cost of Capital Schedules

1. Summary Schedule

2. Cost of Long-Term Debt

3. Cost of Short-Term Debt

4. Common-Equity

E. Rate Structure and Design Information

1. Test Year 2018 Operating Revenue Summary Comparison

2. Test Year 2018 Operating Revenue Detailed Comparison

3. Class Cost of Service Study

F. Other Supplemental Information

1. Annual Report

2. Gross Revenue Conversion Factor

Volume 4A: Work Papers


A. 2018 Test Year Workpapers

1. Jurisdictional Cost of Service Study (JCOSS)

2. Class Cost of Service Study (CCOSS)

3. Functionalization

4. Input Summary

5. 2018 Test Year Adjustments

TY-01 – Normalized Plant in Service

TY-02 – Rate Case Expenses

TY-03 – Normalized Plant Outage

TY-04 – Removal of PTC’s

TY-05 – Economic Development

TY-06 – Prorate ADIT

B. 2018 Base Year Workpapers

1. Jurisdictional Cost of Service Study (JCOSS)

2. Functionalization

3. Input Summary

4. Work Papers A-D, ND

C. Interim Cost of Service Study

D. Hevert Cost of Capital Workpapers

Volume 4B: Lead Lag Study

Lead Lag Study

Volume 5: Budget Documentation

  • O&M Budget Process
  • Capital Budget Process
Search