Commission cuts Xcel Energy’s proposed natural gas rate increase by more than 40%
St. Paul, MN — The Minnesota Public Utilities Commission (Commission) approved a final natural gas rate increase for Xcel Energy of approximately $36.9 million, or 4.8%, reducing the company’s original request of $63.4 million (8.2%) by more than 40%. In addition, the Commission set Xcel’s return on equity (ROE) at 9.3%, rejecting the higher ROE proposed by Xcel Energy and supported by the Minnesota Department of Commerce, Citizens Utility Board of Minnesota (CUB), and other parties.
The decision followed the Commission’s review of a partial settlement agreement jointly filed by Xcel Energy, the Department of Commerce, CUB, the Suburban Rate Authority and LIUNA. The Minnesota Office of the Attorney General – Residential Utilities Division (OAG) did not join the settlement. The Commission approved most portions of the agreement but adopted the OAG’s and Administrative Law Judge’s recommendations on the ROE and other rate-setting components that will result in a lower increase than the settling parties recommended.
The Commission adopted numerous adjustments affecting depreciation, manufactured gas plant and damage‑prevention costs, technology services, rate case expenses, and other items such as a pension expense tracker – each aimed at ensuring just and reasonable rates.
Based on initial estimates, Xcel’s final rates will be lower than the interim rate increase of $51.5 million or 6.8%, which means customers will receive a refund. The final refund will be calculated in the coming months.
For the full record, please visit Docket 25‑356.
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.
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