Minnesota Power to issue roughly $122 million in bill credits to customers

Minnesota Power says it will issue about $122 million in bill credits to customers starting next January.

According to the utility company, roughly $72 million of the credits will come from company land sales around several of its hydroelectric reservoirs, while $50 million will come from a contribution of its two owners. The Minnesota Public Utilities Commission approved the plan on Thursday.

Customers can expect to see land sale credits on their bills next January and February, the company says. Each residential customer will save about $55 each of the two months. 

"The amount of the credit is about half of the average residential customer's monthly bill, so the credit could reduce the two monthly bills by half for many customers," Minnesota Power said in a news release.

The $50 million in credits from the contribution of its owners will be credited to customers over the next five years. The first credit of about $15 for the "average residential customer" will be in March 2027, with four subsequent $15 credits in January each year through 2031, according to the company.

"We've been working diligently to keep customer bills as low as possible, especially as they are facing increasing costs related to fuel, food and other household bills," Jennifer Cady, vice president of Public Policy and External Affairs for Allete, said.

Allete is the parent company of Minnesota Power.

The utility company provides electricity to around 150,000 customers in a 26,000-square-mile service area in northeastern Minnesota, according to its website.