Minn. Stat. » CHAPTER 216B. PUBLIC UTILITIES
Minnesota Statutes

Minn. Stat. § 216B.03 (2026)

Reasonable Rate

✓ current as of May 2026
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Every rate made, demanded, or received by any public utility, or by any two or more public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable, and consistent in application to a class of consumers. To the maximum reasonable extent, the commission shall set rates to encourage energy conservation and renewable energy use and to further the goals of sections 216B.164, 216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in favor of the consumer. For rate-making purposes a public utility may treat two or more municipalities served by it as a single class wherever the populations are comparable in size or the conditions of service are similar.

Notes of Decisions
Cited in 33 cases (1 in the last 5 years), 1977–2024 · leading case: Minnegasco v. Minnesota Pub. Utils. Comm'n, 549 N.W.2d 904 (Minn. 1996).
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Minnegasco v. Minnesota Pub. Utils. Comm'n, 549 N.W.2d 904 (Minn. 1996). · cites it 28× “The MPUC found that its authority to determine that a gas utility's name and reputation have value and to impute revenue to the gas utility arises from its duty to set just and reasonable rates under Minn.Stat. §§ 216B.03 and 216B.08, its supervisory authority over affiliated…”
Application of Peoples Nat. Gas Co., 389 N.W.2d 903 (Minn. 1986). · cites it 12× “While the taconite producers correctly assert that interim rates must comply with the statutory requirement that "[e]very rate made, demanded, or received by any public utility * * * shall be just and reasonable," Minn.Stat. § 216B.03 (1984), they measure compliance by the rates…”
In re Minnesota Power for Auth. to Increase Rates for Elec. Serv. in Minnesota, 838 N.W.2d 747 (Minn. 2013). · cites it 8× “” Minn.Stat. § 216B.03 (2012). Further, the statute requires that the Commission give “due consideration to the public need for adequate, efficient, and reasonable service and to the need of the public utility for revenue sufficient to enable it to meet the cost of furnishing…”
Schermer v. State Farm Fire & Cas. Co., 721 N.W.2d 307 (Minn. 2006). · cites it 4× “See Minn.Stat. § 216B.03 (2004); Nw. Bell Tel.”
Application of Minnegasco, 565 N.W.2d 706 (Minn. 1997). · cites it 4× “See Minn.Stat. §§ 216B.03, 216B.16, subds. 1, 3-6 (1996).”
Hibbing Taconite Co. v. Minnesota Pub. Serv. Comm'n, 302 N.W.2d 5 (Minn. 1980). · cites it 4× “Minn.Stat. § 216B.03 (1978) provides in pertinent part: Every rate made, demanded, or received by any public utility * * * shall be just and reasonable.”
Petition of Inter-City Gas Corp., 389 N.W.2d 897 (Minn. 1986). · cites it 8× “Therefore, Conwed attacks the interim rates as unjust and unreasonable and, hence, violative of the requirements of Minn.Stat. § 216B.03 (1984). The basic thrust of the consumer argument is that MPUC's definition of "rate design" is too narrow.”
N. States Power Co. v. Minnesota Pub. Utils. Comm'n, 344 N.W.2d 374 (Minn. 1984). · cites it 4× “7 On the other hand, if the amended CA was merely a loss allocation between the two utilities, NSP’s Tyrone loss is not necessarily a proper expense for purchased power.”
Siewert v. N. States Power Co., 793 N.W.2d 272 (Minn. 2011). · cites it 2× “”); see also Minn.Stat. § 216B.03 (2010) (“Every rate made, demanded, or received by any public utility .”
Peoples Nat. Gas Co. v. Minnesota Pub. Utils. Comm'n, 369 N.W.2d 530 (Minn. 1985). · cites it 2× “See Minn.Stat. § 216B.03 (1984) (“Every rate made, demanded, or received * * * shall be just and reasonable.”
N. States Power Co. v. City of Oakdale, 588 N.W.2d 534 (Minn. Ct. App. 1999). · cites it 4× “While we need not decide whether the city's ordinance will result in unreasonable rate discrimination under Minn.Stat. §§ 216B.03 and .07 (1998), we do note that NSP has a statutory remedy that allows NSP to address discriminatory rate concerns, if any, without interfering with…”
Petition of N. States Power Gas Util., 519 N.W.2d 921 (Minn. Ct. App. 1994). · cites it 4× “Reasonable Rates Minn.Stat. § 216B.03 (1992) mandates that every public utility rate “shall be just and reasonable.”
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