St. Paul, Minnesota — The Minnesota Public Utilities Commission (Commission) took action to reduce interim rate increases for Xcel Energy’s (Xcel) electric and natural gas customers today and started the public review process for the proposed rate increases. The Commission approved an interim rate increase of 6.4% for Xcel residential electric customers, and a 3.9% interim rate increase for residential natural gas customers, down from proposed increases of 9.4% and 4.9%, respectively. 

The Commission referred the Xcel’s electric and natural gas matters to the Office of Administrative Hearings to continue the public review of the proposals. As part of the public review process, interested members of the public may provide input during the upcoming written comment periods and at public hearings. The Commission will review the record, including the public comments, before making final decisions, expected in summer (electric) and spring (natural gas) of 2023. 

“The Commission saw that the circumstances in Minnesota and the world today necessitated that we reduce the proposed residential rate increases,” said Commissioner Matthew Schuerger. “I hope that as this process moves along, people share their input with the Commission. As we saw today, public input helps us understand how these proposals will impact ratepayers, and it can make a difference in the outcome.” 

Xcel’s electric residential customers will see an interim rate increase of $79.85 million, or about $5.54 a month for the average residential customer. For natural gas service, the Commission approved a $24.9 million interim rate increase. The interim rate increase combined with the Commission decision today to extend the recovery of the extraordinary February gas costs from 27 to 63 months for residential customers, reduced the monthly impact to $0.60 for the typical residential ratepayer. 

Minnesota law authorizes public utilities to recover an interim rate while the Commission evaluates the full rate request. Interim rates for both proposals will start in January 2022 and will be in effect until the final rates are established by the Commission. If the final rates are lower than the interim rates, customers will see refunds.

Xcel’s overall electric request sought an increase in electricity rates of 21.2%, or about $677 million over three years. Under this proposal, the typical residential customer would see a 24.3% increase, or approximately $12 to $21 a month. Xcel’s natural gas proposal would increase rates by 6.6%, or about $35.6 million. The average natural gas residential customer would see a monthly increase of about $5.12. 

For additional information about the rate review process please visit the Commission’s website, https://mn.gov/puc/activities/financial-analysis/general-rate-case/. 

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 Please contact Tricia DeBleeckere, 651-201-2254 or tricia.debleeckere@state.mn.us if you have any questions. 

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