EPA Regulations Cited as Montana Utility Seeks Huge Rate Increase

The Montana Public Service Commission is in the process of investigating a rate increase requested by Montana-Dakota Utilities. Public Service Commissioner Travis Kavulla’s says the 21.1 percent increase is the largest request he has seen.

"It's an unusually large rate increase, 21 percent," Kavulla said. "Usually, we only get single digit increases and so we will be looking at this one very closely. That is for an average consumer a little less than $15 per month so you’re talking about $11.8 million for them to use consumers on an annual basis."

Some of the reasons behind the rate request are pretty normal and include transmission line upgrades and new power plants, but there is another unusual element.

"This one is really peculiar," Kavulla said. "They had to spend a lot of money on environmental upgrade to comply with the Mercury and Air Toxics rule which the U.S. Supreme Court just threw out, but not before utilities like MDU tried to comply with it."

The Utility is asking for a 10 Percent return on its capital investments. Montana Public Service Commissioners say that they will be taking a close look at Montana-Dakota Utility’s upgrades to make sure they were done responsibly.