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State regulators approve 9 percent electric rate increase for Xcel Energy... https://www.mpmews.org/story/2023/06/01/state-regulators-approve-9-e... <br />Q <br />State regulators approve 9 percent electric rate increase for Xcel <br />Energy <br />Kirsti Marohn June 1, 2023 5:36 PM <br />The Xcel Energy nuclear generating plant near Monticello, Minn., is <br />pictured on March 24. Ben Hovland I MPR News <br />State regulators on Thursday approved an increase in <br />electric rates for Xcel Energy customers that's far smaller <br />than Xcel had requested. <br />The Minneapolis -based utility originally sought to <br />increase its electric rates by 21 percent, or $677 million, <br />over three years. <br />Xcel later reduced its request to $440 million over three <br />years. The Minnesota Department of Commerce and an <br />administrative law judge recommended a smaller amount. <br />After several days of hearings, the state Public Utilities <br />Commission approved a rate increase of 9.6 percent over <br />three years, or $306 million — less than half of Xcel's <br />original request. <br />Grow the Future of Public Media <br />MPR News is Member supported public media. Show your <br />support today, donate, and ensure access to local news and <br />in-depth conversations for everyone. <br />Donate Today <br />Initial estimates indicate Xcel's final rates will be lower <br />than the interim rates it's currently charging, meaning <br />most customers will receive a refund. <br />Xcel has said it needs the increase to cover the costs of <br />replacing an aging electrical system as it transitions to <br />more renewable energy. But it comes at a time when many <br />Minnesotans are struggling to pay rising utility costs. <br />Xcel, Minnesota's largest electric utility, serves about 1.3 <br />million customers in the state. <br />The Public Utilities Commission also set a higher return <br />on equity for Xcel of 9.25 percent, although less than what <br />the utility requested. Return on equity is the measure of a <br />company's net income divided by its shareholders' equity, <br />and is a gauge of a corporation's profitability. <br />The commission also reduced the monthly basic charge <br />for residential and small business customers, and limited <br />the amount Xcel can compensate its top executives. <br />173 <br />1 of 2 6/2/2023, 12:05 PM <br />