Minnesota Power Rate Cut For Paper Mills, Mines Approved

ST. PAUL, Minn. (AP) — Regulators have approved lower electrical rates for mines and paper mills in northern Minnesota.

But they’ve told Minnesota Power to do more work to justify its plan to recapture that lost revenue by raising rates for residential customers.

The Public Utilities Commission on Thursday approved rate cuts of about 5 percent for mines and paper mills. But the PUC put off deciding whether to increase rates by 10 percent for residential customers and 1 to 2 percent for other businesses. The PUC said it needs more information to determine whether Minnesota Power’s plan is reasonable.

The industrial rate cut won’t take effect until the other rate changes are decided.

The taconite industry says it needs the rate cut to be competitive. Critics say the plan us unfair to ordinary consumers.

(© Copyright 2016 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

  1. Tim says:

    Somebody has to make up the difference, a 5% cut equates to a 10 to 20% rate increase for residential customers? Whose fuzzy math is this anyway, oh wait the electric companies need money to bribe government officials and legislators.

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