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Fighting to Save You Money on Your Utility Bills
AARP North Dakota continues fight to keep utility rates reasonable Urges PSC to Oppose Unfair Montana-Dakota Utilities Residential Rate Proposals
In its ongoing fight to save North Dakotans money on their utility bills, AARP North Dakota has formally intervened in the case filed by Montana-Dakota Utilities (MDU) that would raise the fixed rate for residential electric customers by 18.9 percent or nearly $19 per month.
As of September 21, 2026, the North Dakota Public Service Commission (PSC) is currently considering the request.
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In its filing to the PSC, AARP ND calls for closer scrutiny of the proposal and for the commission to consider the significant burden such an increase will have on older North Dakotans and their families.
“This fixed rate increase means residential customers can’t adjust their electrical usage to manage the increase,” said Janelle Moos, Advocacy Director at AARP ND. “When you are on a fixed income, and the prices for groceries, gas and rent keep rising, and increase in utility rates becomes a true hardship.”
MDU states it will use the increase to raise $34.5 million to increase capital investments in electric facilities, address higher operating expenses, growth in rate base and higher property taxes. The MDU proposal before the PSC would place the burden of the electrical rate increase on residential customers.
- Residential customers will carry the burden of the fixed rate increase with a nearly 19 percent hike.
- Large general service customers (business and industry) will see only an 11 percent increase.
- MDU is asking to increase the customer charge—the monthly fee customers pay before even turning on the lights. These higher charges punish seniors, who tend to use less electricity. When combined with low or fixed incomes, expensive utility rate hikes can be especially challenging for older North Dakotans.
“These are tough economic times for people,” Moos said. “AARP will continue to fight on behalf of North Dakotans 50 and older to keep utility rates fair and reasonable.”
Next steps in this process include a public hearing. Once the public input sessions are scheduled by the PSC, customers in the MDU electric service territory will be able to voice their concerns about the proposed rate increase. AARP encourages folks to speak up at those hearings to voice their concerns. That schedule will be available here.
Background
AARP North Dakota is the only organization in North Dakota at the table when utility companies look to unfairly burden residential customers with rate hikes.
Montana Dakota Utilities Natural Gas Rate Increase (May 2024)
Montana Dakota Utilities (MDU) proposed increasing residential natural gas rates by $35.3 million in 2024. The rate increase request made to the North Dakota Public Service Commission (PSC) would have resulted in a 9.84% increase in residential customers’ monthly bill.
As a result of AARP’s intervention, MDU settled for a lower increase of 6%, an average monthly increase for an MDU residential customers of $3.55.
Xcel Energy rate increase (July 2024)
When Xcel Energy proposed an increase to the fixed customer charge (the charge before any natural gas is used) AND an increase in natural gas prices, AARP quickly intervened — citing the disproportionate burden placed on residential customers.
As a result, Xcel Energy reached a settlement agreement with the ND PSC that eliminated the proposed increase to the fixed customer charge and lowered the overall increase to residential customer bills -- from the requested 12% -- to 9%. The fixed customer charge for natural gas stayed at $22.25 monthly.
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