Contact: Minnesota Public Utilities Commission

Burl Haar
651-201-2222

Janet Gonzales
651-201-2231

Fax:
651-297-70703

St. Paul - The Minnesota Commission met today to hold its public deliberations on Xcel’s request for a $156 million (6% overall) increase in its electric rates. Because the decision involves numerous individual issues, the precise amount of the approved revenue increase is not known at this point. However, it is expected that final authorized increase will be approximately 70% of the $132 million authorized for interim rates, which have been in place during the pending rate case proceeding. Xcel will be required to refund the difference between final approved rates and interim rates to customers. The effect of the decision on individual customer bills will vary depending on rate class (e.g. Residential, Commercial, or Industrial) and usage patterns. 

A major factor in determining rates is the authorized return on common equity. The Commission adopted the recommendation of the Administrative Law Judge and the Minnesota Office of Energy Security which was 10.88%. Xcel had proposed 11.00%. The approved return on equity will be used to calculate base rates. Whether the Company actually realizes this return depends on its efficiency of operations, the economy, weather and a host of other factors; i.e., the return is not guaranteed. 

A final written order formally documenting the Commission’s decision will be issued in several weeks. That order in docket E-002/GR-08-1065 will be available on the Commission’s website via the Commission’s e-Dockets system. 

Xcel’s last general rate increase request for its electric operations was filed in November of 2005. In that case, Xcel requested an increase of 8.0%, or $168 million annually. Commission ultimately granted an increase of $115 million. Prior to that, Xcel had not filed a rate request since 1992.