Public Utilities Commission accepts $122 million interim rate increase withdrawal

St. Paul, Minnesota — On Tuesday, the Minnesota Public Utilities Commission (Commission) accepted Xcel Energy’s proposal to withdraw its $122 million interim rate increase request. The Commission also approved Minnesota Energy Resources Corporation’s (MERC) interim rate increase request. 

With the Commission’s approval, Xcel electric customers will not see an additional interim rate increase in their electric charges while the multiyear rate case proceeding continues. Xcel electric originally proposed an additional 2023 interim rate increase of $122 million, or about 4%. The Commission-approved 2022 interim increase in this proceeding will remain in effect until final rates are decided.   

For MERC’s natural gas service, the Commission granted the company’s proposal for a $36.9 million, or a 9.1%, interim rate increase. This will be about $7.00 a month for the average MERC residential customer. A portion of MERC’s increase proposal moves costs from one part of a customer bill to another, so customers will not feel the full impact of the proposed increase.   

Interim rates for MERC will start in January 2023 and remain in effect until the final rates are approved by the Commission. If the final rates are lower than the interim rates, customers will see refunds. 

The Commission is expected to make final decision on Xcel electric’s rate increase proposal in summer 2023. The Commission will likely make a determination on MERC’s rate increase proposal in late 2023. 

For additional information about the rate review process please visit the Commission’s website.