BISMARCK – The North Dakota Public Service Commission Wednesday approved two rate case settlements with MDU natural gas customers and for Otter Tail Power electric customers that will mean refunds for customers.

The PSC approved an about $2.5 million (2.3 percent) annual revenue increase for MDU natural gas service. The company had originally asked for an increase of $5.9 million (5.4 percent).

In September 2017 the Commission approved a $4.6 million interim rate increase in accordance with state law. That interim rate was reduced to $2.7 million in March 2018 to reflect tax savings due to the Tax Cuts and Jobs Act. Because the agreement approved today includes a smaller increase than the interim rate, MDU natural gas customers will receive a refund for any excess revenue collected from September 2017 to present. The refund will be issued within 90 days of approval of a refund plan.

As part of the agreement, the fixed basic service charge will be $20.87 per month for residential customers. Because the rate approved Wednesday is less than the current interim rate, customers will actually see a decrease in their bills.

The PSC approved about a $4.6 million (3.09 percent) annual revenue increase for Otter Tail electric service. The company had originally asked for an increase of $13.1 million (8.72 percent).

In December 2017 the Commission approved a $12.8 million interim rate increase in accordance with state law. That interim rate was reduced to $8.3 million in February 2018 to reflect tax savings due to the Tax Cuts and Jobs Act. Because the agreement includes a smaller increase than the interim rate, Otter Tail electric customers will receive a refund for any excess revenue collected from December 2017 to present. The refund will be issued within 90 days of implementation of the final rates.

As part of the agreement, the fixed basic service charge will be no higher than $14 a month for residential customers. Because the rate is less than the current interim rate, customers will actually see a decrease in their bills.