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ND PSC approves coal permit revision, two damage-agreement settlements, and two MDU electric service agreements
Summary
At its March 26 meeting the commission approved a revision to a BNI Coal surface-mining permit, adopted a consent agreement with JR Veil LLC, and approved Montana-Dakota Utilities’ electric service agreements for Dakota Prairie and Tesoro refineries. The commission also approved the consent calendar and previous minutes.
The North Dakota Public Service Commission approved a set of consent items at its March 26, 2025 meeting, including a surface coal mining permit revision for BNI Coal Limited, a consent agreement with JR Veil LLC over natural gas-line strikes, and two electric service agreements between Montana-Dakota Utilities (MDU) and refinery customers.
Surface coal mining permit revision: The commission approved Revision 44 to surface coal mining permit BNCR-9702, held by BNI Coal Limited for the Center Mine. Staff said the revision updates legal and financial sections, ownership and control, pre- and post-mine topography and surface-water plans, transportation and reclamation schedules, post-mine backfilling and regrading, and adds two variance areas encompassing final pit locations. The variances request relief from contemporaneous reclamation requirements (three-year vegetation requirement and 180-day rough-grading requirement); staff concluded the variances were adequately justified. The revision was deemed significant and received public notice; staff reported no comments or objections. The item carried on voice vote.
JR Veil LLC consent agreement: The commission adopted a consent agreement (case DM-24-333) resolving allegations that JR Veil struck MDU natural gas service lines on three occasions. The record shows JR acknowledged two strikes and called 911 in those instances but failed to report a third strike on Sept. 9. The consent agreement assesses a $3,500 civil penalty with $1,500 suspended on condition of no further violations for five years; $2,000 is payable within 10 business days.
MDU electric service agreements: The commission approved MDU’s electric service agreement with Dakota Prairie Refinery (case PUD-24-379). Staff said MDU will serve all firm electric power under phase 1 rates through Dec. 31, 2025, with discounted phase 2 rates beginning Jan. 1, 2026; Dakota Prairie commits not to purchase power from other suppliers or self-generate (except backup). Staff recommended approval, finding the agreement reasonable and that the discounted rate covers lost margins and impacts to other customers.
The commission also approved an amendment to the MDU-Tesoro (Tesoro) electric service agreement (case PUD-24-380). Staff reviewed the history of ESAs with industrial customers and compared the amendment to the company’s most recent rate case; the amendment raised the contracted rate by 9.32%, narrowing disparity with Rate 30 following a 5.5% increase to Rate 30 in the rate case.
The meeting approved the consent calendar (three items plus previous minutes) at the start of the session; these items were moved and carried on voice votes unless otherwise noted.
