St. Paul, MN – On Thursday, the Minnesota Public Utilities Commission (Commission) began reviewing Xcel Energy’s application to increase natural gas service rates in Minnesota. 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 Commission conducts a comprehensive evaluation of the full rate request.
The Commission approved a $51.5 million interim rate increase, or 6.8%, which is less than Xcel’s request of $63.4 million increase, or 8.2%. These interim rates will take effect on or after January 1, 2026. Importantly, these interim rates are subject to refund with interest if the final authorized rates are lower than the interim levels collected.
As part of its decision, the Commission referred Xcel’s rate case to the Court of Administrative Hearings (CAH) for a contested case proceeding and a detailed, independent review of their application. The CAH is tasked with developing a complete record by examining various cost drivers that make up Xcel’s rate request, including:
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The reasonableness of the company’s financial structure, such as capital structure, cost of capital, and return on equity.
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Justifications for significant cost changes since the last rate case, such as increases in the cost of natural gas.
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Operating expenses, including payroll and executive compensation.
A final decision on Xcel Energy’s general rate request is anticipated on or before November 26, 2026.
The Commission strongly encourages active customer engagement in these hearings and throughout the process. Public participation is vital as it helps the Commission fulfill its mission to protect the public interest by ensuring utility services are delivered at just and reasonable rates.
Customers can stay informed about upcoming hearings and filings by following Docket 25-356.
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.
