Xcel Energy Pulls Plug on Multi Million Dollar EV Charging Station Plan

(KNSI) — Xcel Energy has pulled the plug on its plans to invest millions in high speed electric vehicle charging stations in Minnesota after the Public Utilities Commission reduced the amount of a requested rate increase.

The Clean Transportation Portfolio plan would have built a network of 700 charging stations at a cost of $200 million – a bill footed by ratepayers.

Xcel initially requested a 21% rate hike for its 1.3 million Minnesota customers, which would have brought in more than $675 million over three years. The PUC balked at the numbers, and Xcel decreased the request to $440 million over the same period. It was still more than what the commission was comfortable with, and the Department of Commerce and an administrative law judge agreed, recommending an even smaller amount. Xcel finally settled on a more than 9% increase to bring in just over $300 million.

A bill signed into law earlier this year mandates 100% clean energy for the state by 2040. The law demands that utilities switch from coal, in particular, to cleaner energy sources, such as solar and wind, unless costs rise too quickly or there are concerns about reliability.

A statement from Xcel says the smaller than desired rate increase will limit the utility’s ability to lead the clean energy transition and warns the state’s “aggressive goal of 100% carbon-free electricity by 2040” will be more costly for the company and, in turn, ratepayers.

Xcel officials say they plan to seek reconsideration of the PUC’s decision.

The company was granted an 8.13% increase in 2022, totaling $247.1 million. That was already above what the Minnesota Department of Commerce recommended for 2022 and 2023 on a combined basis.

___