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PUC approves MDU infrastructure rider: customers to see small per‑kWh increase
Summary
The commission approved Montana‑Dakota Utilities' infrastructure rider update, a roughly $1.5 million revenue requirement that raises the IR rate to $0.01093 per kWh (about $7/month for a 900 kWh residential customer); commissioners probed data‑center cost allocation and procurement transparency.
The South Dakota Public Utilities Commission approved Montana‑Dakota Utilities’ updated infrastructure rider rate, accepting staff’s recommendation and setting an effective date of July 1, 2026.
MDU regulatory analyst Chelsea Metzger said the filing reflects a true‑up of actual costs through September 2025 and projected costs through December 2026, including the company’s South Dakota allocation of the Wishick transmission rebuild, the Glendive breakers and the Badger Wind project. The filing requests a revenue requirement of approximately $1.5 million that results in a proposed IR rate of $0.01093 per kilowatt‑hour, an increase of $0.00832; staff and MDU estimated a residential customer using 900 kWh/month would see roughly a $7 monthly increase (about $90 annually).
Commissioners pressed MDU and outside advisers about procurement and allocation decisions tied to large‑load customers such as data centers. Colton Kennedy (CEUK Energy Group) said the procurement for the Badger Wind facility did not follow a competitive RFP process and thus limits transparency into whether the company obtained the best possible price. MDU representatives said the Badger Wind project provides price protection and low‑cost generation for integrated system customers and described contractual and tariff protections intended to keep data‑center costs from being borne by other customers.
Staff recommended approval after reviewing the filing and data responses. A motion to approve the proposed IR rate and revised tariff sheet passed unanimously.
The commission signaled it will continue to scrutinize filings where large new loads change procurement and cost allocation dynamics and asked staff to monitor impacts on other customers.
