Montana-Dakota Utilities Seeks 14.5 Percent Rate Increase in North Dakota

Montana-Dakota Utilities filed a request with the North Dakota Public Service Commission for a 14.5 percent rate increase, which would raise annual revenues by $34.5 million. The company is also seeking an interim rate increase of 12.3 percent starting September 1, adding approximately $12.90 to the average monthly residential bill.

Travis Jacobson, the company's vice president for regulatory affairs, defended the request to lawmakers by citing higher labor costs, maintenance expenses, and investments in electric infrastructure. He denied that the rate hike is connected to the company's data center projects.

Separately, the utility entered an agreement with Applied Digital to supply power to a new data center located near Center, North Dakota. This specific service extension has drawn a protest letter from the Innovative Energy Alliance Cooperative. In response, the utility stated it structures rates to prevent large energy users from increasing costs for other customers, claiming that North Dakota customers have received $45.4 million in benefits from such usage over the last three years.