North Dakota Public Service Commission approves COBRA penalties, several rate riders and $15.4 million in NSP customer refunds

BISMARCK, N.D. — The North Dakota Public Service Commission on Dec. 18 approved a slate of orders including a consent agreement that assesses civil penalties against COBRA Oil & Gas Corporation, adopted utility cost‑recovery riders for Otter Tail Power and Northern States Power (NSP), and approved a $15.4 million bill‑credit refund to NSP customers.

The commission voted unanimously to adopt a consent agreement resolving two damage‑prevention enforcement matters (case numbers DM23270 and DM24234). Commissioner Sherry Haugenhofer told the commission staff’s investigation found that, between June 2021 and February 2024, COBRA failed to provide a required “positive response” 395 times out of 898 locate tickets — a 43.8% failure rate — and in a separate instance acknowledged it began excavation without filing a locate ticket. The settlement assesses a combined civil penalty of $10,500 with $5,000 suspended provided COBRA commits no further violations for five years; the suspended portion must be submitted within 10 days if the condition is not met.

“Those failures to file a locate ticket present the real danger,” Commissioner Randy Christman said during debate, while noting he would support the agreement and urging staff to consider penalty calibration in future cases in light of the statutory $25,000 cap on individual penalties.

Votes at a glance - COBRA Oil & Gas consent agreement (DM23270; DM24234): Approved. Combined penalty $10,500; $5,000 suspended contingent on no violations for five years. - Otter Tail Power — Advanced metering & distribution technology rider (PUD‑24‑307): Approved. Company proposed a $1.7 million revenue requirement to recover AMI, demand‑response and related costs; staff said outage‑management costs were moved into base rates. Filing estimated to increase the rider by roughly $0.34 per month per residential customer (presented as $0.73 total monthly addition in the filing). - Otter Tail Power — Transmission facility cost recovery (PUD‑24‑336): Approved. Annual update including six transmission projects; net effect reduces the rider by about $0.96 for the illustrative customer due to a $1.5 million over‑collection being returned via true‑up. - Northern States Power — Transmission facility cost recovery (PUD‑24‑349): Approved. Proposed 2025 transmission revenue requirement approximately $4.7 million (22¢/kW), adding ~59¢ per month for a 750 kWh residential customer. - Northern States Power — Bill‑credit refund application (PUD‑24‑362): Approved. NSP proposed returning about $15.4 million to North Dakota customers in 2025 via a bill‑credit rider (includes proceeds from three land sales, a fifteenth DOE settlement payment, and overearnings from 2021–2022). The proposal yields an annual bill credit of $77.19 — about $6.43 per month for an average residential customer using ~776 kWh/month.

Commissioners also praised the commission staff for clear, concise memos that aided decision‑making. Chair Randy Christman and other commissioners singled out staff members by name for their work on rate and transmission dockets. During discussion about the NSP refund, Christman expressed frustration with the federal government’s continued lack of a permanent nuclear waste solution, calling the long delay “irresponsible,” and urged colleagues toward solution‑driven approaches; other commissioners said they would pursue related committee follow‑up.

The commission removed from today’s agenda a revision related to the Falkirk mine while awaiting verification from the Office of Surface Mining; the chair said the delay was procedural and did not reflect a discovered substantive error. Commissioners announced a farewell celebration for Commissioner Julie Fedorchek the following afternoon and said the commission would finalize its 2025 meeting schedule for publication.

What happens next The approved riders and refunds will proceed under the terms set in each order. The COBRA consent agreement conditions include a five‑year compliance period; the commission indicated staff will monitor follow‑up compliance. The commission recessed to take questions from the press and listed possible special meetings to conclude year‑end business.