Big Three Utilities Seek Rate Hike from Minnesota Public Utilities Commission Ahead of Winter Chill

(KNSI) — CenterPoint Energy is asking the Minnesota Public Utilities Commission for a rate increase just in time for winter.

The requested CenterPoint increase is approximately 6.5% or $84.6 million for 2024 and an additional approximately 3.7% or $51.8 million for 2025. If approved, the requested increase would add $5.91 to a typical residential customer’s monthly delivery charge in 2024 and an additional $2.58 to a typical residential customer’s monthly delivery charge in 2025. The delivery charge accounts for roughly 40-50% of a typical residential customer’s monthly bill.

The company claims “the proposed adjustment would help the utility not only comply with required federal regulations but also make meaningful investments to decarbonize and continue the safe and reliable operation of its 14,000-mile pipeline system.”

CenterPoint Energy is asking the Commission to review and approve the proposed new rates, likely in early 2025. A proposed interim rate increase of approximately 5.3% would take effect on January 1st, 2024, while the rate case is pending. Additionally, an interim rate would apply starting on January 1st, 2025, for an additional 2.4% increase.

Xcel Energy and Minnesota Power are also making a case for rate increases.

Xcel filed an application Wednesday for a 9.6% hike to “reflect the current cost of providing natural gas service to our customers, including an appropriate return on common equity.” If they get the go ahead it would increase gross revenue by over $59 million. Because it could take some time before the PUC says yes or no, officials say there needs to be an 8.5% increase in the interim, increasing revenue by $51.2 million.

Minnesota Power wants 12% to raise general rates by a net $89.1 million, but including the cost transfers between riders and basic rates, it actually equates to a $127.9 million, or 17.2% gross increase over current rates.

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