Balaton expansion project

Minnesota Energy Resources has expanded natural gas service to the town of Balaton. This project provides up to 282 home and business owners the opportunity to receive natural gas service from Minnesota Energy Resources. Research shows that natural gas is more affordable than several other energy sources for the same amount of energy delivered.

Project location

Balaton expansion project


Your portion of the project cost is referred to as a Contribution in Aid of Construction (CIAC). This expansion project was approved by the Minnesota Public Utilities Commission. The CIAC has been funded upfront by Minnesota Energy Resources, to be recovered through a monthly New Area Surcharge.

What is a New Area Surcharge?

  • The New Area Surcharge covers the project costs that customers are responsible for and allows customers to "pay as you go" on a monthly basis rather than incurring that cost up front.
  • Everyone who connects will pay the monthly New Area Surcharge, whether connecting in the first year or at a later time.
  • The New Area Surcharge is affiliated with the property, and will be transferred to any new property owners until the CIAC is paid in full.
  • The term of the New Area Surcharge is up to 25 years or until the CIAC is paid in full, whichever comes first.
  • The term will not go beyond 25 years from the month in which the first New Area Surcharge is billed.

The monthly New Area Surcharge amounts for the City of Balaton are:

Balaton Project 25 Year New Area Surcharge
Expires 2042
Residential and Residential — Farm Tap $24.14
Commercial & Industrial Firm Class 1 and Farm Tap Firm Class 1 $45.75
Commercial & Industrial Firm Class 2 and 3 and Farm Tap Firm Class 2 and 3 $114.37
Commercial & Industrial Interruptible Class 1, 2, and 3, Agricultural Grain Dryer Class 1, and Electric Generation Class 1 $419.34
Commercial & Industrial Firm and Interruptible Class 4 and 5, Farm Tap Firm Class 4 and 5, Grain Dryer Class 2 and 3, and Electric Generation Class 2 $470.17

Once natural gas service is installed, this monthly charge will appear on your bill in addition to your typical natural gas monthly charges.