St. Paul, Minn. — On Thursday, the Minnesota Public Utilities Commission (Commission) began review of Minnesota Power’s electric rate increase and Xcel Energy’s gas rate increase. The Commission also established interim rates for Minnesota Power and Xcel gas customers.
On November 1, 2023, Minnesota Power and Xcel gas filed rate increase requests. The Commission suspended the requests while the Department of Commerce, the Attorney General’s Office, and interested parties investigate whether the rate requests are reasonable. While the investigation is ongoing, the utilities are allowed by Minnesota law to collect interim rates. Only in the most extraordinary or unusual situation, known as exigent circumstances, can the Commission modify an interim rate.
The annualized $63.8 million interim rate increase for Minnesota Power customers is approximately an 8.6% increase and, for Xcel Gas, the annualized $51.2 million interim rate increase is approximately 8.5%. Interim rates will start on January 1, 2024, and are in effect until the final rates are established by the Commission. If the final rates are lower than the interim rates, customers will receive refunds.
As part of the Commission’s decision, they ordered both companies to do additional rate case outreach and engagement to ensure customers understand how to learn more and how to provide comment.
According to Commission Chair Katie Sieben, “It is important that we hear from the public during these rate cases. Input into the record is vital as it helps us understand how utility proposals impact Minnesotans.”
The full rate case review and investigation process is expected to take 12 to 15 months before coming back to the Commission for final decisions. Additional information on the Commission’s rate review process is on our website.
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.
