Fighting to Save You Money on Your Utility Bills
AARP is fighting to save you money on your utility bills. Natural gas and electric rates are an essential pocketbook issue for North Dakota residents 50+ and their families, many of whom struggle to pay their utility bills along with other household expenses like food and medicine. Utility rates are soaring because of the quadrupling of natural gas commodity costs. At this time, AARP North Dakota is the only organization in North Dakota at the table when utility companies look to unfairly burden residential customer with electric rate hikes.
As a result of AARP’s intervention and advocacy, we save utility customers nearly $2 million in 2024 alone. Learn more about work below.
Montana Dakota Utilities Natural Gas rate increase (May 2024)
Montana Dakota Utilities (MDU) proposed increasing residential natural gas rates by $35.3 million in 2024. The rate increase request made to the North Dakota Public Service Commission (PSC) would mean that residential customers would see a 9.84% increase in their monthly bill. AARP North Dakota opposes this proposed rate increase on behalf of its 83,000 members and North Dakota residents, aged 50+, and intervened with the Public Service Commission in May of 2024.
In its rate increase filing for natural gas customers in North Dakota, MDU proposed to increase residential rates 9.84% while the overall average increase is just 7.45%. In addition, MDU was proposing another increase to the basic service charge – the fixed charge residential customers pay before turning on the gas – despite already having one of the highest fixed charges in the area. MDU also proposed the addition of a residential distribution delivery charge.
“Even small increases can be detrimental to low users and people on fixed incomes – which includes many of our AARP members. AARP has a long history of opposing such increases in North Dakota and will continue to ensure rates remain affordable. We urge the North Dakota Public Service Commission to reject the increase", said Askvig.
As a result of AARP’s intervention, MDU agreed to settle in November 2024 for an increase of 6%. The average monthly increase for an MDU residential customer will be $3.55, resulting in $1.03 million for MDU residential natural gas customers.
Xcel Energy rate increase (July 2024)
When Xcel Energy proposed an increase to the fixed customer charge (the charge before any natural gas is used) AND an increase in natural gas prices, AARP quickly intervened — citing the disproportionate burden placed on residential customers.
And the intervention made a difference. In July, Xcel Energy reached a settlement agreement with the North Dakota Public Service Commission that decreased the burden on residential customers. The settlement eliminated the proposed increase to the fixed customer charge, and lowered the overall increase to residential customer bills from the requested 12% down to 9%.
The fixed customer charge for natural gas remained at $22.25 monthly for residential customers. Xcel had requested that it be increased to $25.
In August 2024, Xcel Energy settled with the state after AARP’s intervention and eliminated a proposed increase to the fixed customer charge (the charge before any natural gas is used) and lowered the overall increase to residential customer bills from the requested 12% down to 9%.
The fixed customer charge for natural gas remained at $22.25 monthly for residential customers. Xcel had requested that it be increased to $25. AARP helped contribute to a reduction of $1.23 million for Northern States Power Company's (Xcel) residential customers.
“These are much better results than if AARP had not intervened. We know that even a small increase can really hit households on fixed incomes hard. We’ll continue to fight to keep utility rates affordable,” says Janelle Moos, AARP ND Advocacy Director.
Providing resources to keep costs down
In order to help older North Dakotans deal with the fluctuation in natural gas prices that often come during the winter heating season, learn more about the low-income heating assistance program or LIHEAP at hhs.nd.gov/applyforhelp/liheap.
To learn more about LIHEAP go to hhs.nd.gov/applyforhelp/liheap.
