Xcel Energy customers see temporary rate increase, public comment period now open

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.

"We have a situation where Xcel's bill's going up, but all of the bills are also going up," Xcel Energy customer Faith Riverstone said. "I value that longtime standing with them but I really wish there was another option."

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.

"They have to file a lot of evidence justifying their need to a rate increase," Brian Edstrom with the Citizen Utility Board Minnesota said. "And that's a public process where that information is part of a public record."

Edstrom says there aren't many options for people wanting to switch providers.

"Your only choice is to move to a different service territory or produce electricity yourself," he said.

Minnesota Attorney General Keith Ellison says his office is reviewing the proposed rate increase, but he is "deeply skeptical that Xcel needs to raise rates on Minnesotans by almost 10%."

"My job is to help Minnesotans afford their lives, not to help Xcel Energy reward their shareholders," Ellison said.

Xcel Energy says customers struggling to pay their bills have options for assistance.