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For Immediate Release:
December 13, 2024
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Minnesota Public Utilities Commission
Contact: Cori Rude-Young, 651-201-2241
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Minnesota Public Utilities Commission approves interim rates for Xcel Energy
St. Paul, Minn. – On Thursday, the Minnesota Public Utilities Commission (PUC) began the process of reviewing Xcel Energy’s petition to increase rates for its residential and business customers. As part of this rate-case review, utilities are entitled under Minnesota law to recover a portion of their proposed costs through interim rates while the PUC conducts a comprehensive evaluation of the full rate request.
The Commission approved a $192 million interim rate, or 5.2%, which is less than the $223.7 million Xcel Energy requested. These interim rates will take effect on January 1, 2025, resulting in adjustments to monthly energy bills for residential and business customers. Importantly, these rates are subject to refund with interest if the final approved rates are lower than the interim levels.
As part of its decision, the PUC referred Xcel Energy's rate case to the Office of Administrative Hearings (OAH) for a detailed review. The OAH is tasked with developing a full record addressing the range of cost drivers that make up Xcel’s rate request, such as:
- Increases in operation and maintenance expenses
- Executive compensation
- Prepayment of pensions
- Evaluating new grid reinforcement initiatives
- Wildfire mitigation programs
The rate-case review process will involve a rigorous examination of Xcel Energy’s financial records, as well as opportunities for public participation. Over the next year, public hearings will be held to gather feedback from Xcel customers and other stakeholders. The PUC encourages active customer engagement in these hearings to ensure transparency and accountability throughout the process.
A final decision on Xcel Energy’s rate request is anticipated on or before July 31, 2026. Customers can stay informed about upcoming hearings and access resources for managing energy costs on the PUC’s website at mn.gov/puc.
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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