Minnesota Power Requests Wholesale Customer Rate Increase
December 31 2007 - 8:30AM
Business Wire
On December 28, 2007 Minnesota Power, an ALLETE company (NYSE:
ALE), filed a rate adjustment request with the Federal Energy
Regulatory Commission (FERC) seeking an increase in the electric
rates of its wholesale customers. Minnesota Power has not asked for
a wholesale rate adjustment since 1995. This request applies only
to Minnesota Power�s 16 municipal customers and two private
utilities in Wisconsin, including Superior Water, Light & Power
Company. The requested increase is approximately 10% for municipal
customers and approximately 12.5% for Superior Water, Light &
Power Company. Minnesota Power anticipates the rate adjustment will
result in an annual revenue increase of approximately $7.5�million.
Minnesota Power has asked FERC for interim rates to take effect by
March 1, 2008 and expects FERC approval of final rates by late 2008
or early 2009. �This rate adjustment would acknowledge our
increased costs of providing service to wholesale customers,
including general operation and maintenance expenses, while
integrating environmental compliance, renewable generation, and
transmission asset additions,� said Don Shippar, ALLETE Chairman,
President and CEO. Wholesale customers are the communities within
the Minnesota Power service area who distribute electric service to
their residents, and the Wisconsin private utilities. Retail
customers of Minnesota Power who receive their bill directly from
the company are not included in this rate request. �The rates paid
for Minnesota Power electric service � by both wholesale and retail
customers � have historically been among the lowest in the United
States,� Shippar added. �We do not anticipate this changing as a
result of this proposed rate adjustment.� Minnesota Power provides
electricity in a 26,000-square-mile electric service territory
located in northeastern Minnesota. Minnesota Power supplies retail
electric service to 141,000 customers and provides wholesale
electric service to 16 municipalities. More information can be
found at: www.mnpower.com. The statements contained in this release
and statements that ALLETE may make orally in connection with this
release that are not historical facts, are forward-looking
statements. Actual results may differ materially from those
projected in the forward-looking statements. These forward-looking
statements involve risks and uncertainties and investors are
directed to the risks discussed in documents filed by ALLETE with
the Securities and Exchange Commission.
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