Duluth-based power company reaches terms with municipalitiesMinnesota Power announced today it has reached agreements with 15 Minnesota municipal customers on new wholesale electric service contracts through June 2019.
By: News Tribune staff, Duluth News Tribune
Minnesota Power announced today it has reached agreements with 15 Minnesota municipal customers on new wholesale electric service contracts through June 2019.
The Duluth-based utility sells electricity to municipal utilities in Virginia, Hibbing, Grand Rapids, Brainerd, Ely, Aitkin, Two Harbors, Proctor, Biwabik, Buhl, Gilbert, Keewatin, Mountain Iron, Pierz, Randall, and Nashwauk, which signed a new long-term agreement with Minnesota Power in February.
Minnesota Power also provides wholesale electric service to its subsidiary Superior Water, Light & Power Co. and to Dahlberg Light and Power, based in Solon Springs.
The municipal electric service contracts continue using formula-based electric rates authorized by the Federal Energy Regulatory Commission.
Al Hodnik, president and chief executive officer of Allete, Minnesota Power’s parent company, said the municipal customers are a “fundamental part of our business and a significant piece of our energy load.”
Taken in total, the municipal contracts of Minnesota Power represent approximately 300 megawatts, or about 15 percent of the utility’s electricity sales.
In addition to selling electric power to municipal customers, Minnesota Power provides retail electric service to about 144,000 residents and to many large industrial customers involved in taconite and paper production and petroleum pipeline transport.