DULUTH, Minn. — Minnesota Power is proposing new and expanded assistance programs and future bill credits aimed at easing energy costs for residential customers, including those struggling to keep up with monthly payments.
Many of the proposals, which require approval from the Minnesota Public Utilities Commission, are part of an estimated $200 million in direct customer and community benefits tied to the acquisition of ALLETE by Canada Pension Plan Investment Board and Global Infrastructure Partners.
“Our customers count on us every day to provide the reliable energy they need, and we remain committed to supporting them in meaningful ways,” said Josh Skelton, Minnesota Power’s chief operating officer. “The program offerings and bill credits we’re announcing today reflect our dedication to helping our neighbors manage their energy bills and maintain peace of mind—especially during challenging times.”
Among the proposals is a one-time bill credit funded by proceeds from land sales near several of the utility’s hydroelectric reservoirs. Minnesota Power said those sales totaled $72 million through 2025. The average residential customer would receive a credit of about $109, expected to appear on bills later this year.
The utility also plans to expand its long-running Customer Affordability of Residential Energy, or CARE, program to $2.5 million. The expansion would extend eligibility to as many as 500 additional customers.
The CARE program offers either a $20 monthly flat discount through automatic enrollment for eligible energy assistance participants or an affordability discount designed to cap energy costs at 3% of household income for customers who apply. The program also includes payment matching for customers with active payment arrangements who carry past-due balances.
Minnesota Power is also seeking approval for a new On Track program aimed at customers who have fallen behind on their bills. The proposed $3.1 million program would provide a $20 monthly flat discount and match payments made toward past-due balances for customers enrolled in payment plans. The program would continue until funds are exhausted.
“As many Minnesota residents continue to struggle with the cost of living, the CARE and On Track programs will be crucial to help working people across Minnesota Power’s service territory keep their families safe and warm,” said George Shardlow, executive director of the Energy CENTS Coalition.
Minnesota Power said customers can apply for the CARE affordability discount at mnpower.com/CARE, by emailing CARE@mnpower.com, or by calling 800-228-4966. Customers with past-due balances would be contacted directly about the On Track program if it receives regulatory approval, which the utility expects this spring.
The company also noted that a one-year freeze on residential base rates is already in effect.
Looking ahead, Minnesota Power is finalizing plans for an additional $60 million in proposed customer benefits, pending commission approval. That includes $50 million in bill credits beginning in 2027, with $10 million distributed annually through 2031, and a $10 million residential energy bill mitigation fund.
Details for the mitigation fund are still being developed, but Minnesota Power said it would support energy efficiency, conservation, weatherization and fuel-switching initiatives for low- and moderate-income customers.
