6.1a2 ERMUSR 06-13-2023State regulators approve 9 percent electric rate increase for Xcel Energy... https://www.mpmews.org/story/2023/06/01/state-regulators-approve-9-e...
Q
State regulators approve 9 percent electric rate increase for Xcel
Energy
Kirsti Marohn June 1, 2023 5:36 PM
The Xcel Energy nuclear generating plant near Monticello, Minn., is
pictured on March 24. Ben Hovland I MPR News
State regulators on Thursday approved an increase in
electric rates for Xcel Energy customers that's far smaller
than Xcel had requested.
The Minneapolis -based utility originally sought to
increase its electric rates by 21 percent, or $677 million,
over three years.
Xcel later reduced its request to $440 million over three
years. The Minnesota Department of Commerce and an
administrative law judge recommended a smaller amount.
After several days of hearings, the state Public Utilities
Commission approved a rate increase of 9.6 percent over
three years, or $306 million — less than half of Xcel's
original request.
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Initial estimates indicate Xcel's final rates will be lower
than the interim rates it's currently charging, meaning
most customers will receive a refund.
Xcel has said it needs the increase to cover the costs of
replacing an aging electrical system as it transitions to
more renewable energy. But it comes at a time when many
Minnesotans are struggling to pay rising utility costs.
Xcel, Minnesota's largest electric utility, serves about 1.3
million customers in the state.
The Public Utilities Commission also set a higher return
on equity for Xcel of 9.25 percent, although less than what
the utility requested. Return on equity is the measure of a
company's net income divided by its shareholders' equity,
and is a gauge of a corporation's profitability.
The commission also reduced the monthly basic charge
for residential and small business customers, and limited
the amount Xcel can compensate its top executives.
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