MDU proposes Nov. 1 transmission charge change on top of September interim electric rates

A Montana-Dakota Utilities proposal, still pending before state regulators, would add about $2.52 a month to the electric bill of a home using 800 kWh starting Nov. 1 if approved. The change would come on top of interim rates that took effect Sept. 1.

By Bismarck Local Staff

In short

  • Montana-Dakota Utilities electric customers in Bismarck–Mandan, already paying interim rates since Sept. 1, could see a second change on their bill...
  • The change is proposed and still pending.
  • On Aug. 12 the commission suspended the proposed rates and issued a notice of opportunity for hearing, with comments and hearing requests due by Se...

Montana-Dakota Utilities electric customers in Bismarck–Mandan, already paying interim rates since Sept. 1, could see a second change on their bills as soon as Nov. 1 if regulators approve it. The change is proposed and still pending. The utility has asked the North Dakota Public Service Commission to update its Transmission Cost Adjustment, a separate line item on electric bills, according to the PSC case file (Case No. PU-26-288).

What changes on the bill

  • Proposed date: service on and after Nov. 1, 2026, MDU's customer notice says, subject to commission review.
  • Residential and small general service (rate schedules 10, 13, 16, 20, 25 and 40, including residential Rate 10): from a credit of $0.00129 per kWh to a charge of $0.00186 per kWh, a change of $0.00315 per kWh, per the notice.
  • Home using 800 kWh: a residential customer using 800 kWh a month would pay about $2.52 more a month, or $30.24 more a year, compared with current interim rates, if the change is approved, MDU estimates.
  • Status: pending, not approved. On Aug. 12 the commission suspended the proposed rates and issued a notice of opportunity for hearing, with comments and hearing requests due by Sept. 25. MDU's notice says suspended rates do not take effect until the commission acts. As of Oct. 17, the docket shows no filings after Aug. 31: no hearing request, settlement or commission order on the new rates.

Why the rider is changing

MDU's July 15 application says the rider recovers transmission charges from two regional grid operators, MISO and the Southwest Power Pool, plus transmission projects the commission approved in an earlier case (PU-25-225). Those projects include $1,037,381 in total project costs in Bismarck and $15,524,144 in Mandan, according to the filing. The rider covers those projects only through August 2026; starting Sept. 1, their costs are recovered in base rates, as MDU proposed in its general rate case. MDU's notice says revenue from a large customer served under its Rate 45 tariff is credited to all customers. MDU estimates that credit saves a residential customer using 800 kWh about $2.98 a month, or $35.76 a year.

The September increase

The proposed rider rate would come on top of interim rates the commission approved Aug. 26 in MDU's general rate case (PU-26-241). The order allows $26,347,265 in added annual revenue, effective for service on or after Sept. 1, and requires MDU to refund any excess, with interest, if final rates come in lower. The interim increase is applied to the basic service, energy and demand charges, not to the transmission rider. MDU's July 20 filing estimated a typical residential bill would rise a net of about $12.90 a month, or 12.3%, after a reduction in the transmission rider. MDU's rate case page says the full request would raise an average residential bill about $19.10 a month if approved. The general rate case is still open, and the docket shows no final order.

Before your next bill

  • Questions: MDU at 1-800-638-3278, per its notice.
  • Case files: search PU-26-288 and PU-26-241 at psc.nd.gov.

Sources: https://psc.nd.gov/webdocs/case/26-0288/010-010.pdf, https://psc.nd.gov/webdocs/case/26-0288/001-010.pdf, https://apps.psc.nd.gov/cases/pscasedetail?getId=26&getId2=288, https://psc.nd.gov/webdocs/case/26-0241/010-010.pdf, https://psc.nd.gov/webdocs/case/26-0241/003-010.pdf, https://www.montana-dakota.com/rates-services/rate-cases/

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