In the Matter of the Application by Minnesota Power for Authority to Increase Rates for Electric Service in Minnesota. ...

Syllabus

1. A utility's mandatory contributions to its pension plan are an \expense[] of a capital nature\ to which the Minnesota Public Utilities Commission must give \due consideration\ in determining the utility's rate base under Minn. Stat. § 216B.16, subd. 6 (2022). 2. A decision of the Minnesota Public Utilities Commission that categorically and entirely excludes a prepaid pension asset from a utility's rate base is unsupported by substantial evidence and arbitrary and capricious when the commission does not adequately explain the reasons for its decision or its reasons for departing from the contrary findings and recommendation of an administrative-law judge. Affirmed in part, reversed in part, and remanded.