Montana-Dakota Utilities files natural gas increase request in South Dakota
BISMARCK, N.D. – July 1, 2015 – Montana-Dakota Utilities Co. filed a natural gas rate increase request with the South Dakota Public Utilities Commission Tuesday, June 30. If approved, it would increase residential customers’ monthly bill by an average of about $2.20 a month.
“The primary reasons for this request to increase rates are increased operating costs, along with increased investment in our natural gas facilities,” said Nicole Kivisto, president and chief executive officer of Montana-Dakota. “We have seen good customer growth and increased usage, which partially offsets the increase request.”
Montana-Dakota’s total investment in South Dakota natural gas operations has increased by approximately $11.5 million, or about 12 percent, from 2012 to the levels included in this rate case.
The proposed increase is for approximately $1.53 million annually over current rates, or a 3.1 percent overall increase. Montana-Dakota serves about 57,600 natural gas customers in 25 South Dakota communities.
The proposed increase for each rate class, which is based on rate class studies, is:
- Residential 4.6 percent
- Firm general 0.8 percent
- Small interruptible 0.8 percent
- Large interruptible 3.3 percent
The South Dakota PUC has up to six months to issue a decision on the proposed increase request.