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Electricity rates jump Friday for 26,000 Eastern Montana customers of Montana Dakota Utilities.

Montana’s Public Service Commission approved the 13 percent rate increase Friday and set this Friday as the starting date.

"It's phased in over two years," said Eric Sell, Public Service Commission spokesman. "The first phase goes into affect April 1, 2016. The second phase April 1, 2017."

MDU initially proposed a 21 percent increase, which it said was needed to cover pollution control upgrades and other costs at its coal-powered plants in Montana and South Dakota. The total cost of those improvements, which have already been made, was $400 million split by ratepayers in three states, under the terms of the deal.

The rate increase was reduced last month through a settlement with MDU's large customers and the state consumer counsel for small ratepayers.

The average cost to ratepayers is expected to be $6.38 per month, according to the PSC. Montana customers will shoulder a $3 million increase in 2016 and a $4.4 million increase in 2017.