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Minnesota Power rate increase

Electric · Minnesota · Investor-owned utility · part of CPP Investments and Global Infrastructure Partners

Approved

Last checked

Minnesota Power has an approved rate change taking effect January 2027: About $122 million in bill credits starting January 2027. See the details below for what the sources say about bill impacts.

Details and sources

Rate changes, newest first

About $122 million in bill credits starting January 2027

Other · Electric

Approved

Typical residential bill

Not stated for a specific usage level. Any figures the sources give are in the summary below.

Filed
Not disclosed
Decided
October 8, 2026
Effective
January 2027
Requested increase
Not disclosed
Approved increase
Not disclosed
Docket
Not disclosed

The PUC approved Minnesota Power's plan on Oct. 8, 2026 to return about $122 million to customers: about $72 million in land-sale proceeds, averaging roughly $55 a month for residential customers on January and February 2027 bills, and $50 million from its owners, paid as an annual credit of about $15 per average home each year from March 2027 through 2031.

Utility's stated reasons

  • Proceeds from land sales around hydro reservoirs
  • Owner contribution agreed in the 2025 acquisition approval
Sources (2) · Based on news or utility announcements

Last verified Oct 12, 2026

One-year base rate freeze and lower ROE under ALLETE acquisition approval

Other · Electric

In effect

Typical residential bill

Not stated for a specific usage level. Any figures the sources give are in the summary below.

Filed
Not disclosed
Decided
October 3, 2025
Effective
Not disclosed
Requested increase
Not disclosed
Approved increase
Not disclosed
Docket
Not disclosed

Approving the sale of ALLETE to CPP Investments and Global Infrastructure Partners in October 2025, the PUC set customer conditions: a one-year base rate freeze, a return on equity cut from 9.78% to 9.65% after closing and capped at 9.78% through 2030, $50 million in bill credits, a $20 monthly discount for eligible low-income customers and up to $3.5 million in arrears forgiveness.

Utility's stated reasons

  • Conditions of the sale of ALLETE to CPP Investments and GIP
Sources (3) · Based on news or utility announcements

Last verified Oct 12, 2026

2024 electric rate case settlement (final rates from March 2025)

Base rate case · Electric

In effect

Typical residential bill

Not stated for a specific usage level. Any figures the sources give are in the summary below.

Filed
November 1, 2023
Decided
November 25, 2024
Effective
March 1, 2025
Requested increase
$89 million
Approved increase
$33.97 million
Docket
E015/GR-23-155

Minnesota Power sought about $89 million (12%) and collected about $64 million in interim rates from January 2024. The PUC approved a settlement for $33.97 million with a 9.78% return on equity; final rates began March 1, 2025, about 4.9% above 2023 rates for residential customers (about $5/month on average), and excess interim collections were refunded.

Sources (3) · Verified against regulator or utility filings

Last verified Oct 12, 2026

Most recent base rate case

Decided November 25, 2024 · Docket E015/GR-23-155

The PUC approved a settlement raising Minnesota Power's annual revenue by $33.97 million (net of rider revenue) with a 9.78% return on equity; final rates took effect March 1, 2025 and interim over-collections were refunded.

Who decides

Utility website: www.mnpower.com

Related

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Last checked Oct 12, 2026. Spotted something out of date? Tell us.