MN PUC Approves Xcel Rate Increase
ST. PAUL (WJON News) - Thursday, the Minnesota Public Utilities Commission approved a much smaller rate increase than Xcel Energy had asked for.
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The Commission approved a rate increase of about $306 million, or just under 10 percent, spread out over three years.
- $92 million in 2022
- $93 million in 2023
- $121 million for 2024
Xcel Energy had initially requested an increase of $677.72, or a 21-percent increase.
In addition, the Commission made several decisions:
- Established a return on equity of 9.25% for Xcel,
- Required Xcel to establish a low-income rate,
- Reduced the monthly basic charge for residential and small business customers,
- Denied the recovery of excessive costs for executive compensation,
- Continued to work to investigate advanced rate designs including time of use rates.
The final rate is lower than the interim rate Xcel has been charging, so customers will see a refund in the next few months.
The multi-year plan means Xcel Energy cannot file another rate case until November of 2024.
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