Minnesota Power Customers to Receive $122.5 Million in Bill Credits

The Minnesota Public Utilities Commission on Oct. 9 approved two credit programs totaling $122.5 million to reduce electricity bills for Minnesota Power customers. The measures will return proceeds from utility land sales and benefits associated with the acquisition of ALLETE to customers, providing short-term relief and recurring credits through 2031.

Minnesota Power will distribute $72.5 million in net proceeds from the sale of hydropower reservoir lands through customer bill credits. The credits will be applied in two installments on January and February 2027 bills. An average residential customer is expected to receive approximately $109 in total relief over the two months. The program will return proceeds from utility property sales directly to customers rather than retaining the full value within the utility’s operations.

The second program provides $50 million in credits under conditions established by the commission when it approved the acquisition of ALLETE. Minnesota Power will distribute the amount in annual installments of $10 million over five years, beginning in 2027. Residential customers are expected to receive approximately $15 on their March 2027 bills, followed by additional credits each January from 2028 through 2031. The credits will be applied automatically to accounts held by customers when the payments are issued.

Together, the programs establish two separate mechanisms for returning financial benefits to electricity consumers. The land-sale credits provide concentrated relief over two months, while the acquisition-related program spreads the benefits across five years. The arrangements also link the commission’s acquisition approval conditions to direct financial benefits for customers.

Minnesota Power will begin implementing the land-sale credits in January 2027 and issue the first annual acquisition-related credit in March of that year. Customers will not need to submit applications or take other action to receive the payments. The programs are intended to support electricity affordability and ensure that customers share in the financial benefits arising from utility property sales and the ALLETE acquisition.