Rates for more than 84,000 Montana Dakota Utilities customers are increasing 2.17 percent. The decision was approved by the Montana Public Service Commission on Tuesday.
Montana customers will be expected to pay $1.49 million more per year, which will help fund pipeline replacement for areas where pipelines are approaching 50 years of use. Approximately 51,000 customers reside in Billings, with the remaining 33,000 spread across an area of eastern Montana that includes Malta, Miles City and Sidney.
The utility had originally requested a fee increase of 4.1 percent, which would have cost customers an additional $2.8 million annually.