Officials approve Xcel electric rates increase, down from proposed rates

On Thursday, the Minnesota Public Utilities Commission (PUC) approved Xcel Energy’s plan to increase electric rates following making significant reductions to the overall increase.

The PUC approved a rate increase of around $306 million, compared to Xcel’s initial proposal of $677.72 million, according to a press release from the PUC.

The increase approval means rates will go up 9.6% over a span of three years.

In addition, the company says its final rates will be lower than the interim rates, which will end up with customers getting a refund. That final refund amount still needs to be determined but is expected to be calculated in the next few months.

“This Commission is laser-focused on affordability and reliability. We scrutinize every dollar to ensure Minnesotans only pay what is necessary,” said Commission Chair Katie Sieben

Throughout establishing a new rate, the PUC made several other decisions, including: 

  • Established a return on equity of 9.25% for Xcel
  • Required Xcel to establish a low-income rate
  • Reduced the monthly basic charge for residential and small business customers
  • Denied recovery of excessive costs for executive compensation
  • Continued work to investigate advanced rate designs including time-of-use rates

“We remain committed to creating a cleaner energy future in a way that maintains affordability for our customers and creates good jobs for Minnesotans,” said Theo Keith, a spokesperson for Xcel Energy.

Xcel said the PUC’s decision carries no effect on electric vehicle proposals, adding the electric company made filings in August and September to increase their Multi-Dwelling Unit pilot budget.

“We are committed to serving current participants in our EV pilots and programs and to working with stakeholders and the PUC on future initiatives. We plan to file a transportation electrification plan in Minnesota in November,” Keith said.

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