Xcel Energy’s residential customers in Minnesota could pay nearly $5 more for power and gas each month starting in 2020 under the utility’s newly proposed three-year rate plan.
Bills would then increase by $1.25 in 2021 and again by $3 the following year if the proposal filed Friday with the Minnesota Public Utilities Commission is approved. The Minneapolis-based utility said that the average monthly residential bill in Minnesota would still be less than the national average.
Xcel projects that its proposal would generate a net $466 million in revenue.
In a statement, Chris Clark – Xcel’s president for Minnesota and the Dakotas – said that would bolster the utility’s goal of going carbon-free by 2050. Major investments outlined in the proposal filings would go toward the upgrade of the utility’s transmission and distribution lines as well as its wind farm in Courtenay, N.D., among an array of other projects.
“Our investments will deliver an even better product for our customers,” Clark said.
Xcel expects proceedings on its request to stretch into 2021, according to its filings with the PUC. In the meantime, it is asking for an interim rate hike of about 4 percent to be approved that would apply to its residential and commercial customers.
On Friday, Xcel also filed for its current rate plan to be extended through 2020 as an alternative. If that request is granted, Xcel wouldn’t ask for the proposed three-year rates to be taken up again for another year.
According to an Xcel spokesperson, the average monthly residential bill in Minnesota was about $85.66 in 2019.
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