Detailed narrative
Bakken East Pipeline Project Advancement
The company secured precedent agreements with all customers that submitted binding open season interest for the proposed Bakken East pipeline, totaling nearly 1.2 billion cubic feet per day of transportation capacity. A negotiated option is in place to potentially increase contracted volumes further.
The project is still being designed for 1.4 Bcf/day, with overall design being finalized based on confirmed customer volumes. A final investment decision is expected before the FERC 7(c) application, which is now anticipated to be filed in Q4 2026.
The proposed in-service dates of late 2029 for Phase 1 and late 2030 for Phase 2 remain unchanged, with the project's potential investment estimated at $2.7 billion to $3.2 billion, incremental to the current capital program.
Data Center Growth and Strategy
MDU Resources is actively pursuing data center opportunities, with over 1 gigawatt of data center load now under signed Electric Service Agreements (ESAs), of which approximately 240 megawatts are currently online. The company recently entered into an ESA with Applied Digital to serve Polaris Forge 3, an AI factory near Center, North Dakota, which would require 430 megawatts at full capacity.
This agreement is pending approval from the North Dakota Public Service Commission. MDU's approach to serving data centers is capital-light, ensuring customers pay for connection costs and that additional revenue helps reduce fixed costs for existing retail customers, creating benefits for all stakeholders.
Regulatory Rate Case Activity
MDU is engaged in several regulatory proceedings across its utility segments. In North Dakota, a general electric rate case was filed requesting an annual revenue increase of approximately $34.5 million, with interim rates of $26.3 million requested to begin September 1, 2026.
Montana interim rates of $10.4 million remain in effect, and a Wyoming general rate case settlement for $5.8 million was approved. For natural gas distribution, new rates in Idaho, Washington, Montana, and Wyoming supported improved results. New cases were filed in Washington ($25.1 million in year 1, $18.1 million in year 2) and Oregon ($12.2 million settlement pending), with a Minnesota filing anticipated later this year.
The pipeline segment also filed a FERC rate case requesting a $31 million annual revenue increase, effective December 1, 2026, subject to refund.
Capital Investment Plan
The company's capital program for 2026 through 2030 totals approximately $3.1 billion. This plan includes planned investments of approximately $1.1 billion in the electric business, $1.4 billion at the natural gas distribution business, and $643 million at the pipeline segment.
This multi-year capital program is distinct from and does not include the potential Bakken East investment, which is considered incremental. MDU remains focused on disciplined execution of this plan while advancing additional infrastructure opportunities.
Pipeline Segment Strategic Initiatives
Beyond the Bakken East project, the pipeline segment continues to advance other strategic growth initiatives. The Line Section 32 expansion project remains on schedule for a late 2028 in-service date, following its FERC Section 7(c) application filing in March 2026.
Development activities for the potential mine and industrial project are also ongoing, with agreements extended through late 2026. These initiatives contribute to the segment's growth and are supported by continued customer demand for transportation and storage services.