Utility Expects to Seek Rate Hike for Flood Damage

Created: 05/10/2013 10:46 AM KSTP.com By: Jennie Olson

Flooding ravaged Duluth in June 2012.
Flooding ravaged Duluth in June 2012.

Minnesota Power says it probably needs to raise rates to pay for damage caused by last year's historic flooding to a hydroelectric facility near Duluth.
    
The Duluth News Tribune reports that repairs and upgrades to the dam complex in Thomson are expected to cost $35 million to $44 million.
    
Minnesota Power's parent company, Allete, will have to file a rate increase request with the Minnesota Public Utilities Commission. Minnesota Power spokeswoman Amy Rutledge says it probably won't add much to an average customer's bill, but the amount is yet to be determined.
    
The Thomson dam is the largest hydroelectric facility in Minnesota Power's system, which serves northeastern Minnesota. It hasn't operated since last June's flood. The dam itself wasn't damaged, but the building and earthen walls were.
    
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