A proposed settlement in Xcel Energy’s natural gas rate case could lower rate increases for customers across Minnesota while providing refunds for charges already paid this year.
The settlement, filed by Xcel Energy, the Minnesota Department of Commerce, the Citizens Utility Board of Minnesota, the Suburban Rate Authority and the Laborers’ International Union of North America, would reduce the utility’s requested annual gas rate increase from 8.2% to 4.88%.
Residential customers would see an average increase of about 4.1%, according to the agreement.
Since January, customers have been paying an interim rate increase of 6.8% while the case moved through the regulatory process. If approved by the Minnesota Public Utilities Commission, customers would receive refunds with interest for the difference between the interim rates and the final approved amount.
The settlement also would reduce Xcel’s expected return to shareholders. Consumer advocates noted the agreement lowers the utility’s implied return on equity compared with the increase sought by the company.
Annie Levenson-Falk, executive director of the Citizens Utility Board, called the proposal a fair outcome, noting that customer contributions to shareholder profits would decline while refunds would be issued.
The Minnesota Office of the Attorney General did not join the settlement and plans to continue litigating issues in the case before the commission.
The Public Utilities Commission is expected to consider the settlement this fall. If approved, the final increase would affect natural gas customers throughout the Twin Cities.
Additional information is available at cubminnesota.org.
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