Xcel Energy rate increase settlement could cut gas hike nearly in half

Xcel, CenterPoint proposing rate increases in MN

Xcel Energy and CenterPoint are proposing more rate increases in Minnesota, with Xcel requesting a 9.6% rate increase for 2025. FOX 9's Bill Keller has the story.

(FOX 9) - Xcel Energy and consumer advocate groups have announced a deal that could lower the company’s proposed gas rate hike, and even give refunds to customers if regulators approve the framework.

Settlement reached on Xcel Energy rate increase

What we know:

Xcel Energy, the Minnesota Department of Commerce, the Citizens Utility Board of Minnesota, the Suburban Rate Authority, and LIUNA filed a settlement to resolve the utility’s gas rate case.

The agreement would set the overall rate increase at 4.88%, with a smaller 4.1% increase for residential customers.

The settlement also means customers who have been paying a temporary 6.8% rate hike since January, would get refunds with interest if the deal is approved.

While Xcel originally asked for a boost from 9.6% to 10.65%, the deal points to an implied return of 9.55%.

What they're saying:

"While any increase in utility costs is going to be difficult for many people, this settlement is a fair outcome," said Annie Levenson-Falk, executive director of the Citizens Utility Board of Minnesota. "If it’s approved, customer contributions to shareholder profits will go down, and ratepayers will receive refunds."

Why you should care:

Members of the public who would like to weigh in may file a public comment by June 12.

What's next:

The settlement still needs approval from the Public Utilities Commission (PUC), which is expected to review the settlement terms and reach a conclusion this fall.

Until then, customers will continue paying the interim rate.