FARGO, N.D. (North Dakota Monitor) — A proposed electric rate increase would cost North Dakota State University about $1 million a year, a representative of the college told utility regulators Monday.

Northern States Power Co., part of Xcel Energy, has asked the North Dakota Public Service Commission to approve a rate increase of more than 19%, or $22.34 per month for an average residential customer.

Xcel Energy’s requested rate increase would affect parts of Fargo, including the NDSU campus.

“NDSU projects that our annual electrical costs would rise by over $1 million,” Brent DeKrey, director of facilities management at NDSU, testified from Fargo at a PSC hearing Monday.

DeKrey said such a large increase could mean increased tuition and fees for students, reduced resources for research at NDSU and additional costs passed along to the state’s taxpayers.

Minnesota-based Xcel has about 97,000 customers in North Dakota. The proposed rate hike would increase Xcel’s annual revenue in the state by $44.6 million.

The PSC also took testimony from people in Grand Forks and Minot, which are also served by Xcel, as well as from the Capitol in Bismarck.

A point of discussion in the rate case is Xcel’s move away from coal to generate electricity.

Xcel last year retired one of three coal units at the Sherburne County Generating Plant, or Sherco, near Monticello, Minnesota. It plans to retire Sherco’s remaining coal-fired units in 2026 and 2030, marking the company’s full exit from coal. Xcel has invested in solar and wind energy and continues to rely on nuclear power plants.

There was little discussion of Sherco on Monday and whether the move away from coal was driving up rates, as Victor Schock, director of utilities for the PSC, has said.

Alex Nisbet, regulatory policy specialist for Xcel Energy, said that the Sherco impact was “being reviewed at great length” in the case.

Utility companies seeking a rate increase in North Dakota often reach a settlement with the PSC for less than the initial request.

North Dakota Xcel customers have been paying a higher rate since February, about half the requested increase.

Nisbet said final rates often end up close to the interim rate.

Asked if Xcel anticipates moving away from natural gas like it has coal, Nisbet said Xcel plans to build a new natural gas combustion turbine in Minnesota with plans for others.

WBI Energy is developing a pipeline to bring natural gas from western North Dakota, where it is a byproduct of oil production, to the east.

“That’s a project that excites us a lot,” he said.

The PSC held a second public input session Monday evening. The public also can submit comments on the rate case by emailing ndpsc@nd.gov or by mail to: Public Service Commission, 600 E. Boulevard Ave., Dept. 408, Bismarck, ND 58505.

The PSC has set a formal hearing to begin Dec. 1.

Reach North Dakota Monitor Deputy Editor Jeff Beach jbeach@northdakotamonitor.com.

North Dakota has long been defined by its resilience and economic self-sufficiency, thanks to the vast network of small businesses. From the family farms to the local oil service companies, small businesses are the true economic engines of the state. A new law that cemented permanency of the 20% Small Business Deduction and other pro- small business tax relief is a critical victory for the heart of North Dakota’s economy, and it is a testament to the advocacy of leaders like Rep. Julie Fedorchak and Sens. John Hoeven and Kevin Cramer.

Of North Dakota businesses, 98.8% are small businesses. They employ over 57% of our state’s workforce, providing the jobs and services that sustain our communities. Many of these businesses are pass-through entities, where the profits of the business are taxed as personal income for the owner. Before Congress’ action, a massive tax hike loomed for over 33 million small business owners at the end of 2025. Making the 20% deduction permanent eliminated this threat, providing long-term certainty and stability for North Dakotan business owners.

Making this deduction permanent has been NFIB’s top federal legislative priority for nearly a decade. A study by EY shows exactly why this deduction is so critical for small businesses and the economy. The study found that the deduction will increase North Dakota’s economic activity by $226 million annually, resulting in the creation of 4,000 jobs each year.

This tax relief extends far beyond a single deduction. The legislation also made permanent marginal tax rate cuts first passed in the 2017 Tax Cuts and Jobs Act, preventing what could have been up to a 4% tax increase. Lower marginal rates free up business income that can be used for hiring, wages and benefits, expanding operations, and upgrading equipment.

Additionally, the tax law provides relief through other vital pro-small business provisions. The increases to the Section 179 expensing cap and Section 168(k) bonus depreciation are particularly significant for a state like North Dakota. Our economy relies heavily on capital-intensive industries like agriculture and energy. For a farmer needing to purchase a new combine or an oil company buying a drilling rig, these expensing provisions allow them to deduct the cost of major purchases.

The new law also addresses the burdensome administrative side of business. By increasing reporting thresholds for forms 1099-K, 1099-NEC, and 1099-MISC small businesses gain much-needed relief from time-consuming paperwork related to independent contractors or digital payment systems. This reduces the time and resources small business owners must spend on compliance, allowing them to focus on growing their business and investing in their communities.

In the end, this law is more than a collection of tax code changes – it’s a pro-small business vote in support of North Dakota’s entrepreneurial spirit. For a state where self- reliance is a point of pride, providing tax certainty and reducing regulatory burdens is the most meaningful support a legislator can offer.

Fedorchak’s experience and dedication to these issues ensure that North Dakota’s small business community will have a voice that truly understands its needs, securing a prosperous future for our Main Streets for years to come.

North Dakota small businesses are grateful for the leadership of Fedorchak, Hoeven and Cramer. NFIB looks forward to building on this massive victory to make it easier for small businesses to grow and flourish.

Don Larson is the North Dakota state director for the National Federation of Independent Business.