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DULUTH — Minnesota Power customers will receive approximately $122 million in electric bill credits beginning in January, including proceeds from company land sales and a $50 million contribution from the utility's owners.
The Minnesota Public Utilities Commission approved the credit plan Thursday, Oct. 8, clearing the way for the Duluth-based utility to return approximately $72 million from land sales near several of its hydroelectric reservoirs directly to customers.
Residential customers can expect to receive an average credit of about $55 per month on their January and February 2027 bills, potentially reducing their monthly electric costs by nearly half during those two months. The actual credit will vary by customer.
An additional $50 million in credits will be distributed over five years through annual lump-sum payments funded by ALLETE's owners, Global Infrastructure Partners and the Canada Pension Plan Investment Board.
The first payment, averaging approximately $15 for residential customers, will appear on March 2027 bills. Four additional annual credits of approximately $15 each are scheduled for January of 2028, 2029, 2030 and 2031.
The $50 million contribution is part of a broader package of customer benefits established when state regulators approved the acquisition of ALLETE, Minnesota Power's parent company, in 2025.
Jennifer Cady, ALLETE vice president of public policy and external affairs, said the credits are intended to provide financial relief as customers continue to face higher household expenses.
“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. Selling these land holdings and crediting those proceeds back to customers is an important effort to do just that,” said Jennifer Cady, ALLETE vice president of Public Policy and External Affairs. “Additionally, our investors pledged $200 million in customer benefits, and these bill credits are part of that commitment. With their support, we have also expanded the assistance available for customers who are behind on their bills.”
Minnesota Power also is expanding financial assistance for customers struggling to pay their electric bills through its On Track program, which provides monthly bill discounts and financial support for eligible residential customers with past-due balances.
Under the program, Minnesota Power will match eligible customer payments toward overdue balances dollar for dollar under an established payment arrangement. The program is designed to help households manage their current electric bills while reducing outstanding debt.
“We’re working to connect customers with more bill-payment assistance than we’ve ever offered on top of offering the credits approved by the MPUC, while continuing to invest in the reliable energy service our communities depend on,” said Cady. “We encourage anyone experiencing difficulty in paying their bill to go to mnpower.com to learn more and connect with the right program for their needs.”
The credits represent a significant return of funds to Minnesota Power customers, with the largest immediate benefit arriving during the winter heating season, when household energy expenses can be particularly burdensome in northeastern Minnesota.
Minnesota Power serves approximately 150,000 customers across a 26,000-square-mile region of northeastern Minnesota, including residential customers, 14 municipalities and some of the nation's largest industrial electricity users.
The utility is a subsidiary of Duluth-based ALLETE, which also owns Superior Water, Light and Power in Wisconsin, ALLETE Clean Energy, BNI Energy and New Energy Equity. ALLETE also holds an 8% ownership interest in American Transmission Co.
Customers seeking additional information about the upcoming bill credits or assistance with overdue balances can visit mnpower.com.
