Xcel Energy Files Deal to Cut Minnesota Gas Rate Hike

Overview

• Xcel Energy, the Minnesota Department of Commerce, the Citizens Utility Board of Minnesota, the Suburban Rate Authority and LIUNA filed a settlement that would set the overall gas increase near 4.9 percent and residential rates at about 4.1 percent if the PUC approves it.
• Customers who have been paying an interim 6.8 percent surcharge since January would receive refunds with interest under the agreement, but the interim rate stays in effect until the commission rules.
• Attorney General Keith Ellison did not sign the settlement and will continue to litigate the case, leaving open the possibility of contested hearings or a different outcome at the PUC.
• The deal would reduce Xcel’s requested revenue increase to about $37.8 million this year, trim the company’s implied return on equity to roughly 9.55 percent, and keep monthly service charges unchanged while addressing late-fee rules.
• The Public Utilities Commission will decide whether to approve the stipulation this fall, the public comment period runs through June 12, and the settlement for the first time requires Xcel to report expected greenhouse gas emissions from major planned gas system expansions.