Minnesota Power Requests 17.8 Percent Rate Increase

Minnesota Power has filed a request with the Minnesota Public Utilities Commission for a 17.8 percent electric service rate increase, which would generate $134 million in additional annual revenue. If fully approved, the average residential monthly bill would increase by approximately $24.

The utility attributes the request to inflation, rising operational and workforce costs, and the need for grid improvements and clean energy investments. The company also noted that revenue declined following the idling of the Minorca Mine and the partial idling of Hibbing Taconite Co., though it clarified that the request is unrelated to a recently approved data center in Hermantown.

An interim rate increase of 15 percent, or about $15 per month, is scheduled to begin in January 2027. Minnesota Power stated that bill credits will offset roughly 70 percent of this interim cost during 2027. If the final approved rate is lower than the interim rate, the company will refund overpayments to customers with interest.

The regulatory review process is expected to last a year or longer and will include public meetings for customer comments.