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For Immediate Release:
August 11, 2022
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Minnesota Public Utilities Commission
Contact: Cori Rude-Young, 651-201-2241
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MINNESOTA PUBLIC UTILITIES COMMISSION REDUCES COSTS TO CONSUMERS BY $58.5 MILLION FROM 2021 NATURAL GAS SPIKE
St. Paul, Minnesota —In February 2021, Winter Storm Uri caused extreme increases in the price of natural gas. After a year-long investigation, the Minnesota Public Utilities Commission (PUC) decided that $58.5 million of extraordinary costs will not be passed along to ratepayers.
The PUC disallowances, by utility are:
- Xcel - $19 million
- CenterPoint - $35.7 million
- Great Plains - $845,000
- Minnesota Energy Resources Corp - $3 million (settlement)
In a hearing on August 11, the five PUC Commissioners evaluated whether the utilities acted reasonably in response to skyrocketing gas prices in February 2021, and purchased gas on the spot-market was needed to ensure reliable gas service. The PUC determined the utilities could have done more to offset costs and protect consumers such as peaking plants usage, storage use, and curtailment.
“Our job is to act in the best interest of the consumer and that is why we ordered a thorough investigation - to ensure we had all the information before making a decision that significantly impacts Minnesota ratepayers”, said Katie Sieben, PUC chair. “In the end, utilities could’ve done better to protect customers from the risks of these price increases. And, going forward they need to be more diligent as these extreme weather events are becoming more frequent.”
Following the unprecedented gas price spike event, the PUC responded quickly. In March 2021, the PUC ordered an investigation into the gas spike, and, subsequently, exempted low-income customers from paying the extraordinary costs. The PUC also acted to mitigate price shock by prohibiting interest from being collected on the extraordinary gas costs and spreading out the period for cost recovery to reduce the burden on ratepayers.
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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