Residents and businesses in St. Paul could see higher utility bills under a proposed natural gas rate increase from Xcel Energy now under review by the Minnesota Public Utilities Commission.
If approved, the plan would raise the average residential monthly bill by about 8.7%, or roughly $7.11. Interim rates already in effect since Jan. 1 have increased bills by about 7.1% while regulators consider the request.
Xcel says the increase is needed to modernize infrastructure, improve system reliability, and invest in safety upgrades at regional facilities, including those serving the metro area. The company maintains that even with the increase, rates would remain below the national average.
However, the proposal comes as many Minnesota households face rising living costs. Consumer advocates note increasing energy burdens and point to rising disconnection rates in recent years, raising concerns about affordability for lower-income residents in neighborhoods across St. Paul, including downtown and West 7th.
Public hearings and a comment period are underway, with input accepted through May 19. A final decision is expected later in 2026.
More information and comment details: mn.gov/puc
Leave a Reply