BISMARCK – The average residential customer receiving electricity from Montana-Dakota Utilities will see their bill go up $3.18 a month on July 1. The North Dakota Public Service Commission on Tuesday approved the increase under a settlement reached by MDU, the advocacy staff of the commission, Walmart, Marathon Petroleum Company and AARP North Dakota.

The settlement agreement provides an annual revenue increase of $15.27 million for MDU. This represents an overall increase in rates of 7.4%. In May 2022, MDU had requested a 17% residential rate hike.

MDU residential customers have been paying an interim rate increase of $5.09, so the additional $3.18 brings the monthly increase total to $8.27 for an average residential customer using 800 kilowatts.

The settlement agreement provides that a portion of the residential revenue increases

be collected through the fixed basic service charge. Rather than jumping to $20.38 per month as originally proposed, the monthly fixed rate increase will be $15.24. The fixed rate for a residential customer prior to the request was $13.99.

“This is a real pocketbook issue for older North Dakotans, and that’s why we worked to mitigate the impact when rate hikes are proposed. With this settlement, residential customers have control over their monthly energy costs and their budget bottom line,” said Janelle Moos, advocacy director at AARP North Dakota.

MDU does not serve Minot’s electrical market but the company provides electricity throughout western and southcentral North Dakota.