Customers of Great River Energy will soon pay more for their electricity.
The Associated Press reports that the company's Board of Directors approved an average 4 percent increase for its 28 local power cooperatives. A typical residential customer can expect to pay an additional $2 to $3 a month.
Based in Maple Grove, Great River Energy is Minnesota’s second-largest electricity producer, with 645,000 customers.
Chief financial officer Larry Schmid cited several reasons for the hike. He said maintenance at two coal-fired power plants in North Dakota is estimated to cost $30 million. He also blamed a drop in a demand for power.
That's the same reason cited by Xcel Energy earlier this month. The Star Tribune reported that Xcel, Minnesota's largest producer of electricity, would be asking the Public Utilities Commission for permission to raise rates by ten percent.