MINNEAPOLIS — Xcel Energy customers can expect their monthly power bill to go up in the new year.
In December, the Minnesota Public Utilities Commission approved a $192 million interim rate which went into effect on Wednesday. Xcel Energy says the interim increase of 5.2% will add about $5.39 to an average residential customer’s monthly bill.
The Minnesota Public Utilities Commission is in the process of reviewing Xcel Energy’s petition to increase rates for its customers. During the review, utility companies are entitled to recover a portion of the proposed costs through interim rates, per state law.
Under Xcel Energy’s two-year $490.7 proposal, the bill for an average residential customer’s monthly electric bill would go up 9.6% in 2025 and another 3.6% in 2026.
A spokesperson for Xcel Energy says if the final rates approved by the Minnesota Public Utilities Commission are lower than the interim rates, customers will be refunded in the form of a one-time credit with interest.
A final decision on the rate increase will be made on or before July 31, 2026, the Minnesota Public Utilities Commission says.
The rate increase is meant to support Xcel Energy’s “commitment to provide reliable, safe, clean electric service” to its customers in Minnesota, according to an information sheet on the proposal.
“Our electric proposal supports our ongoing commitment to provide reliable, safe, increasingly clean electric service while keeping costs low for our Minnesota customers,” a spokesperson for Xcel Energy told WCCO. “The investments will support the economy of the future, meeting the increasing demand from businesses expanding in our region, electric vehicles, and the electrification of homes and businesses.”
The public commenting process is now underway. Comments can be submitted online, through email, fax or mail.
Xcel Energy says customers struggling to pay their bills have options for assistance.
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