Xcel Energy proposes 15.2% electricity price hike over 3 years

It's filed the proposal with the Minnesota PUC.
Author:
Publish date:

Following hot on the heels of Centerpoint's proposed gas price hike, Xcel Energy has proposed its own rate hike for Minnesota customers between 2020-22.

The proposal would increase the average residential bill by 15.2 percent over the three years, adding $4.80 to monthly bills in 2020, $1.25 in 2021, and $3 in 2022.

That would mean another $108.60 added to the average annual electricity bill by 2022.

Xcel Energy, Minnesota's largest electricity utility, is seeking to increase revenues by $466 million through the rate rise, but will have to wait a while before a final decision is made by the Minnesota Public Utilities Commission (PUC).

In the meantime, it's asked for a 4.1 percent interim increase in the rate, which would go into effect on Jan. 1. If the PUC ends up approving increases lower than 4.1 percent, customers will get a refund.

The utility says it would use the additional revenue to build new and upgrade its transmission and distribution lines, building an "advanced electric grid" that provides more options for customers.

This would comprise an investment of $147 million, with a further $63 million earmarked for Xcel's nuclear energy plants at Prairie Island and Monticello.

Sign up: Subscribe to our BREAKING NEWS newsletters

Xcel's efforts to provide 100 percent carbon-free energy by 2050 continue as well, with a little over $80 million of costs relating to its wind energy investment a part of the $466 million revenue boost, per the Star Tribune.

The utility argues that shifting to carbon-free energy sources will prove more sustainable financially for customers in the long term, though has said in the past that it will require some up-front investment.

"We are further strengthening our core services to meet our customers’ energy needs, both today and as we build toward our vision of providing 100% carbon-free electricity by 2050," said Xcel CEO Chris Clark in a statement sent to BMTN.

"We’ve taken advantage of the falling cost of renewable energy and new ways of saving energy to help keep overall bills low, even as we’re making significant grid and service upgrades for our customers. Our investments position us to provide the clean and reliable electricity they need, while maintaining affordability.”

Next Up

Jared Vanderbilt

Shorthanded Timberwolves fall to Atlanta in Monday matinee

D'Angelo Russell scored 31 points, but didn't have much help.

police lights

Man, 72, critical after possible robbery outside Minneapolis business

The 72-year-old sustained gunshot wounds in the incident.

vaccine

It could take months to vaccinate MN teachers, people 65 and older

"This is going to be harder than going to Ticketmaster and trying to get Bruce Springsteen tickets," Walz said.

Herb Brooks statue

Trump's planned statue garden would include 2 Minnesotans, others with MN links

But there were some notable names absent from the wide-ranging and eclectic list.

k9 zeke

Petition seeks to allow retired Corcoran officer to keep K9 partner

Corcoran's public safety director says if K9 Zeke is donated to the officer it will be a loss for the department.

covid

Here is Minnesota's COVID-19 update for Monday, Jan. 18

The latest update from the Minnesota Department of Health.

Tom Kelly Jr.

Tom Kelly Jr., son of Twins World Series manager, dies at 42

He was a member of the 2001 UST national championship team.

Hennepin County CSI

Police: Man shot in the head by woman in Richfield

It happened in the early hours of Monday.

University of St. Thomas

St. Thomas students robbed by suspects in ski masks

Nobody was injured in the early Saturday incident.

Related

electric-car-2783573_1280

Xcel Energy announces major drive to increase electric vehicles in MN

It aims to put 1.5 million EVs on roads in the eight states it covers by 2030.

Screen Shot 2019-05-20 at 11.00.15 AM

Xcel Energy to close its two remaining coal plants earlier than planned

The two Minnesota plants will close in 2028 and 2030, respectively.

Proposed Centerpoint price hike would increase gas bills by 8.7%

The utility says the extra money would be used to invest in its pipeline system.

Xcel customers could soon be getting a refund on their electricity bills

Minnesota's biggest utility has proposed 3 ways it can use its tax savings.

Xcel Energy approved to increase electricity prices 2.7 percent

The Minnesota Public Utilities Commission unanimously approved the rate increase, but it's actually less than half what the Minneapolis-based utility originally requested. The Star Tribune reports the average residential customer will get a $30 refund because they've already been paying a higher interim rate.