Skip to main content

State calls CenterPoint rate hike request "excessive"

  • Author:
  • Updated:
    Original:

Officials with the Minnesota Department of Commerce said that CenterPoint Energy is asking for too big of a rate hike for its natural gas customers.

MPR reported that CenterPoint wants an increase in residential gas rates to pay for pipeline improvements. Company officials said the hike would increase the average residential customer's bill by about $4 a month.

The Star Tribune reported Commerce Department recommended a $21 million reduction in the $44 million request, with department officials saying the hike can be cut nearly in half while still making sure that CenterPoint can provide safe, reliable service and make necessary improvements. Commerce officials predicted the utility''s revenues will be higher than anticipated, making a larger rate increase unnecessary.

Most of CenterPoint’s 823,000 Minnesota customers already pay the 4.9 percent interim rate hike that took effect Oct. 1. In its permanent rate hike request, CenterPoint seeks to increase the monthly basic charge customers pay, from $8 to $15 per month, or 87 percent. That's high enough to trigger what the department calls “rate shock” among customers. It counters that the monthly residential charge should be raised to $9.50, or by 19 percent.

“On behalf of ratepayers, we carefully watch for unjustified rate increases and found areas in CenterPoint’s rate request that are excessive,” said Commerce Commissioner Mike Rothman in a statement.

CenterPoint spokeswoman Rebecca Virden said the company will respond to the department's position by Dec. 23.

Five public hearings on the rate request will be held around the state in the month of December. An administrative law judge will evaluate the case and make recommendations to the Minnesota Public Utilities Commission, which will make a final decision in June.

Next Up

Screen Shot 2022-12-06 at 2.47.44 PM

Minneapolis' Khâluna named in Eater's 2022 'Best New Restaurants'

The restaurant, opened in 2021, is known for its Laotian cuisine.

ambulance, crash

3 pedestrians struck by drivers Monday in Minnesota; 2 dead

The victims involved a 39-year-old man and two 74-year-old men.

snow, plow

Shifting storm tracks: Significant storms Friday, next week?

Sven Sundgaard has the details on an interesting forecast.

Life Link

Worker suffers serious injury in rooftop fall in rural Minnesota

The man only fell a few feet, but suffered a serious leg injury.

Walz, Flanagan

Minnesota reports massive projected budget surplus of $17.6 billion

The huge surplus comes as the DFL prepares to assume a trifecta of the Legislature and the Governor's House.

tap-gf9a40b157_1280

Boil water advisory issued for part of Minneapolis after water main break

The main break caused significant flooding in an area of North Minneapolis Monday evening.

PicketSignsNurseStrike

Deals struck between nursing union and hospitals, potentially averting strike

A strike was scheduled to start on Dec. 11 if a deal was not reached.

Minnesota Solar Installation - All Energy Solar

Make the Most of your Solar Panels with Energy Storage

Solar energy is great during the day, but what happens when the sun goes down?

Screen Shot 2022-12-06 at 7.34.26 AM

Man dies after shooting on St. Paul's East Side

It happened on the same night a man was fatally shot by police in the nearby Dayton's Bluff neighborhood.

Related