MDU rates increase

MDU revise tariffs, increase service rates

PUBLIC NOTICE
Pursuant to the Wyoming Administrative Procedure Act and the Wyoming Public Service Commission’s (Commission) Rules and Regulations, notice is hereby given of the Application of Montana-Dakota Utilities Co. (MDU or the Company) requesting authority to revise its tariffs and increase its retail natural gas service rates by 14.29 percent, as more fully described below:
1. MDU is a Delaware corporation engaged in the business of supplying natural gas utility service to 20,300 customers throughout the Big Horn, Buffalo, Colony, Cowley, Kaycee, Lovell, Powell, and Sheridan communities under certificates of public convenience and necessity issued by the Commission. MDU is a public utility subject to the Commission’s jurisdiction. Wyo. Stat. §§ 37-1-101(a)(xi)(D) and 37-2-112.
2. On October 31, 2024, pursuant to Wyoming Statute § 37-3-106 and Chapter 3, Sections 21(k) and 23 of Commission Rules and Regulations, MDU submitted an Application, together with supporting testimony, exhibits and revised tariff sheets, requesting the Commission approve the Company’s revised tariffs and proposal to implement increases for its Residential; Firm General; and Large Interruptible service classes. The proposal results in an average overall increase of 14.29 percent.
3. The request results in a projected additional annual increase of approximately $2,587,652 in MDU’s revenues based upon a 12-month test year ending December 31, 2023.
4. MDU states the request is primarily driven by continued investment in distribution facilities to improve system safety and reliability, with corresponding increases to depreciation expenses related to these assets and increasing costs of doing business. The Company states current rates are unjust, unreasonable, and not compensatory, therefore, MDU is not able to fully recover its costs of providing natural gas service and earn a fair rate of return on its natural gas operations.
5. MDU’s proposed increase in price changes, by rate schedule, are:
Class Amount Increase Avg. Monthly Use per Dth Avg. Monthly Change
Residential Gas Service $2,111,232 18.67% 8 $9.82
Firm General Gas Service $476,022 7.60% 38 $15.45
Small Interruptible Gas Service $0 0.00% 1,822 $0.00
Large Interruptible Gas Service $398 0.10% 37,797 $4.74
Total $2,587,652 14.29%

The Company states proposed rate changes do not affect the recovery of the cost of purchased gas, which is reflected separately in retail rates recovered monthly in separate filings.
6. MDU proposes language revisions to multiple sections of its tariffs affecting customer responsibilities and options, and Company policy. Tariffs affected by the proposed revisions include the Firm General Contracted Demand Service, Transportation Service, Large Interruptible Gas Service, Purchased Gas Cost Adjustment, Conditions of Service, Summary Billing Plan, Interruptible Gas Service Extension Policy, Firm Gas Service Extension Policy, Autopay Plan, Replacement, Relocation, and Repair of Gas Service Lines, Balanced Billing Plan, Rule Covering Company Meter Testing Program, and Service Interruption Reporting Plan tariffs.
6. This is not a complete description of MDU’s Application. You may review the Application and its supporting testimony and exhibits at the Commission’s office or online at: https://dms.wyo.gov/external/publicusers.aspx (enter Record No. 17710).
7. Anyone desiring to file a statement, intervention petition, protest or request for a public hearing in this matter must do so, in writing, on or before December 19, 2024. Petitions shall set forth the grounds of the proposed intervention or request for hearing as well as the position and the interest of the petitioner in this proceeding. Public participation is encouraged and comments will be received throughout the entirety of this proceeding. The opportunity to present verbal comments will be available to anyone appearing, either in person or remotely, during public proceedings related to this matter. Submitting written comments to the Commission by the deadline set forth above may allow time for resolution of those issues and concerns. Please mention Docket No. 30013-415-GR-24 in all correspondence with the Commission.
8. If you wish to participate in this matter and you require reasonable accommodation for a disability, please contact the Commission at (307) 777-7427, or write to the Commission at 2515 Warren Avenue, Suite 300, Cheyenne, Wyoming 82002, to make necessary arrangements. Communications impaired persons may also contact the Commission by accessing Wyoming Relay at 711.
Dated: November 19, 2024.
First Publ., Thurs., Nov. 21, 2024
Second Publ., Fri., Nov. 29, 2024