The Minnesota Public Utilities Commission (MPCU) on Thursday, Oct. 24, approved a settlement agreement regarding Minnesota Power’s 2024 electric rate proposal. This settlement will lower rates for all customers starting in early 2025.

“The MPUC has approved a final rate increase of approximately 4.9 percent over the 2023 residential and small rates.
business customers, or about $5 per month for the average residential customer, and about 4.4%
over 2023 rates for large industrial and commercial customers,” explained Amy Rutledge, Director of Corporate Communications. “The final rate is lower than the 8.6% interim rate increase that came into effect in January this year, meaning residential customers will see a small drop in their monthly bills.”

Rutledge continued that the difference between the interim rate and the final rate will be refunded to all customers with interest.

The approval will also set Minnesota Power’s return on equity at 9.78 percent.

“We greatly appreciate the hard work of our team and stakeholders and the committee
recognizing that this rate settlement agreement is the best outcome with benefits for our customers,
our communities, our climate and our company,” said ALLETE President, President and CEO Bethany
Owen. “It takes all of us working together – regulators, legislators, our customers, our communities,
and more — to achieve a clean energy transition that is truly sustainable for everyone. This
the agreement strikes a balance that benefits customers while preserving Minnesota
Power on track as it works toward the state’s ambitious climate goals.”

Minnesota Power provided additional information about the rate proposal Here.