Closure of Moorhead malt plant increasing residential water rates

MOORHEAD — A proposed water rate increase in Moorhead is partially fueled by the closure of the Anheuser-Busch malt plant.

Both water and electricity rates in Moorhead are projected to increase in 2026. Moorhead Public Service plans to raise water rates by 5.5% overall and electricity rates by 2% overall.

But the water rate increase would have been lower if the Anheuser-Busch plant, one of the public utility’s biggest customers, was still open, according to Moorhead Public Service General Manager Travis Schmidt.

Anheuser-Busch announced plans to close the Moorhead malt house in November 2024. Schmidt previously told The Forum that Moorhead Public Service saw a net 7-8% loss in revenue because of the plant’s closure.

During a Moorhead Public Service Commission meeting on Tuesday, Oct. 21, Schmidt said the utility expects to continue to raise water rates by 5.5% in 2027, 2028 and 2029. If that plant was open, the utility would still raise rates in future years, but by a lesser amount.

“If Anheuser-Busch wouldn’t have left, we would have been looking at 4% rate increases overall,” Schmidt said.

During the meeting, the Moorhead Public Service Commission held a public hearing on proposed rate increases, but received no public comment. The commission governs the public water and electric utility.

The board will vote on final approval for rates during its meeting on Dec. 16.

Beyond the loss of the Anheuser-Busch plant, water rates are affected by operating expenses and planned capital improvements. Over the next five years, Moorhead Public Service plans to make $31.3 million in water infrastructure improvements.

According to Moorhead Public Service, for the average residential customer, based on a ¾-inch meter using 4,500 gallons of water per month, the rate hike would add $3.33 per month. The average 2025 monthly payment of $49.67 would increase to $53.

The increase in electric rates is sparked by planned rate increases in the companies Moorhead Public Service purchases power from, Western Area Power Administration and Missouri River Energy Services.

For the average residential customer, who uses 850 kilowatt hours of electricity each month, the increase would add $1.35 to their electricity bill per month. The average residential customer pays $99.10 per month in 2025, so with a 2% increase, their bill would go up to $100.45.

In total, proposed electric and water rate increases would add $4.68 per month to the average customer’s utility bill.

Ahead of the final rate vote, the Moorhead Public Service Commission is accepting written comments on proposed rate increases until Nov. 20. Comments can be emailed to mps@mpsutility.com or mailed to the Moorhead Public Service Commission, Box 779, Moorhead, MN, 56561. Commenters must provide their name and address with the comments.

Ingrid Harbo joined The Forum in March 2024.

Harbo reports on Moorhead and Clay County news.

Readers can reach Harbo at 701-241-5526 or iharbo@forumcomm.com. Follow her on Twitter @ingridaharbo.