St. Paul, Minn. — On Thursday, the Minnesota Public Utilities Commission (Commission) approved Xcel Energy’s proposal to increase electric rates, after making substantial reductions to the overall increase. The Commission approved a rate increase of approximately $306 million. This equates to a 9.6% increase over three years. Xcel initially proposed an increase in rates of $677.72 million, or 21.2%.
“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.
In establishing the new rate, the Commission made several 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
Increases based on today’s decisions are $92 million for 2022, $93 million for 2023 (for a two-year total of $185 million) and $121 million for 2023 (for a three-year total of $306 million).
Based on initial estimates, Xcel’s final rates will be lower than interim rates, which means customers will receive a refund. The final refund will be calculated in the coming months.
This multi-year rate plan means Xcel cannot file another rate case until November 1, 2024. Learn more on rate cases, and the Commission’s role here.
About
The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy: electricity, natural gas, and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate, and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional, and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc.
