A deal reached between Montana-Dakota Utilities and consumer advocates means utility rates in eastern Montana will increase starting April 1.
Last June, Montana-Dakota Utilities filed an application with Montana’s Public Service Commission proposing a 21 percent increase in electricity rates. The rate increase was a result of increased business costs.
On Friday, the Public Service Commission approved a lower rate increase, after the utility company reached a settlement with the Montana Consumer Counsel and the Larger Customer Group.
PSC spokesperson Eric Sell.
"They reached a stipulation to cut it down from a 21 percent increase to a 13 percent increase."
Sell says after the rate increase, the electricity bills in areas covered by Montana-Dakota Utilities will still be lower than those in Northwestern Energy’s territory in the western half of the state.
"So this isn’t increasing rates out of the norm across Montana, it’s keeping it in line with what other consumers are paying in other parts of the state."
The rate increase impacts about 26,000 Montana-Dakota Utilities customers in Montana. The increase will be phased in over two years.