St. Paul - The Minnesota Public Utilities Commission (“Commission”) took action yesterday on the petition by Xcel Energy (“Xcel”) for a general increase in its electric rates over a multi-year period. The Commission heard Oral Argument from the parties on May 4, 2017, and made decisions on the merits on May 11, 2017.

Xcel provides retail electric service to approximately 1.2 million customers in Minnesota.

On November 2, 2015, Xcel Energy filed a request for a general increase in its electric rates asking for a $194.6 million increase for 2016, an additional increase of $52.1 million for 2017, and an additional $50.4 million for 2018.

In August of 2016, the majority of the parties to the rate case submitted a Stipulation of Settlement (“Settlement”) of revenue requirement issues, and certain other issues. The Settlement proposed a series of annual increases over four years. The Settlement was agreed to by the company, the Department of Commerce-Division of Energy Resources (“Department”), the Energy Cents Coalition, Xcel Large Industrials, Minnesota Chamber of Commerce, ICI Group/U.S. Energy, Commercial Group, and the Suburban Rate Authority. The City of Minneapolis joined in the Settlement as to street lighting issues only.

The Commission found that the Settlement was in the best interests of the ratepayers. The Settlement establishes an annual increase of $74.99 million for 2016, $59.86 million for 2017, $0 for 2018, and $50.12 million for 2019. The total rate increase over the four-year period would be $184.97 million, a cumulative 6.1% increase. This figure does not include the sales forecast adjustment that stipulating parties agreed to. For 2016, Xcel would collect an additional $60 million because actual sales were less than forecasted sales. The Settlement also included a stated return on equity of 9.20%.

The Commission rejected any increases to the fixed monthly service charge for residential and small commercial customers. Residential customers are currently charged $8.00 per month and small commercial customers are charged $10.00 per month. Xcel sought to increase those charges by $2.00 per month and the Department supported a monthly increase of $1.25.

As required by Statute, the Commission earlier allowed an interim rate increase of $163.7 million effective January 1, 2016 and subject to refund. Customers will receive a proportionate refund of the difference from final rates, with interest.

Administrative Law Judge (“ALJ”) Oxley held eight public hearings around the state on behalf the Commission, and three days of evidentiary hearings in Saint Paul. More than 480 public verbal or written comments were received. In addition to the parties listed above, official parties to the

case included the Office of the Attorney General – Anti-Trust and Utilities Division, the Clean Energy Organizations, and AARP.

On March 1, 2017, the ALJ issued his report, recommending adoption of the Settlement regarding revenue requirements, and making findings on the disputed issues.

A formal written order documenting the Commission’s decisions will be issued by June 12, 2017. This order will be filed in Docket No. E-002/GR-15-826, which is available on the Commission’s website via the Commission’s e-Dockets system.