DULUTH, Minn. (KQDS-TV) – Minnesota Power has asked the Minnesota Public Utilities Commission to approve higher rates for its customers.
The utility is seeking an additional $138 million in revenue, which would amount to a 17.8% increase in rates. If the full request is granted, Minnesota Power says residential customers would pay about $24 more per month on average.
According to the company, the increase would help bolster the grid’s ability to withstand severe weather.
“Minnesota's residential electric bills are the eighth lowest in America, but we do realize that some customers still struggle to pay their bill. And Minnesota Power has a number of programs available for those customers who need assistance, including an arrears forgiveness program for customers,” said Jennifer Cady, vice president of public policy and external affairs. “The request accounts for lost energy sales as we've lost two industrial customers, the Menorca mine and Hibbing Taconite mine, who idled production in 2025.”
Minnesota Power said it expects rate credits from land sold near its hydro reservoirs, which would help offset about 70% of the increase in customers’ electric bills.
The company also emphasized that the filing is unrelated to Google’s planned Data Center in Hermantown.
“This rate increase request actually has nothing to do with the data center at all,” Cady said. “Currently, the data center has not been constructed. It's not taking power from Minnesota Power. This rate case really is reflecting the cost of investing in our electric grid today, and accounting for the fact that we've lost industrial customers who are not taking power from us today.”
Once the Google Data Center becomes fully operational, Minnesota Power says its customers are expected to see benefits. Under Minnesota law, 24/7 customers must pay the full cost of their electric service.
The utility said approval could take a year or longer, and the commission will seek customer comments during the review process.
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