Electricity Rates In North Dakota Coming Down -- September 27, 2018

Link here.

I know the utilities are always quick to ask for rate changes so this must have simply been an oversight by MDU forgetting to request a decrease in electric rates for its customers. Perhaps MDU did make the request; I don't know. But the article says MDU was "ordered" to reduce its rates.

For those who wonder where this came from, one word: Trump.

In January, the North Dakota Public Service Commission ordered the company to report savings from its reduced federal income tax rate. As a result, it was determined MDU should return $8.5 million annually to customers, Commissioner Julie Fedorchak said.

After some discussion, the commissioners unanimously voted to amend the original proposal, which would have allowed the company to keep $300,000, to instead give the full value of the tax credit to ratepayers.

MDU serves 410,000 customers.  

$8.5 million / 410,000 / 12 = $1.73 / customer / month, I guess. Assuming I did the math correctly. A typical monthly bill, I suppose, would be about $250 so, now, about $249. 

I assume MDU will add a processing fee of $2.50/month to cover the administrative headaches involved, including a letter to all its customers them they will see a lower electricity rate in the coming months. Just a hunch about the processing fee. 

Note: the NDPSC ruling, I would assume applies only to MDU's ND customers, but that's where the majority of its customers are located.