(KNSI) – Xcel Energy is hiking rates as it awaits final approval from the Minnesota Public Utilities Commission for a sweeping proposal that would see consumers pay an additional 9.6% for electricity this year and another 3.6% in 2026.
The PUC gave the utility the okay to split the difference until a decision is made in about 18 months. Customers will notice their bills are 5.2% higher the next time Xcel sends out an invoice. The company says a lot of the upfront costs for projects like clean energy production and lengthening the useful life of nuclear plants will eventually flow back to consumers since they create power without constant purchases of coal and other fuels.
Xcel says it also intends to pursue federal credits related to its nuclear plants, which should further ease the overall burden being placed on consumers. The average single-family homeowner has a monthly bill around $100 currently. Without the offsets, bills would rise by close to $13 per month by the end of 2026.
The last time a rate increase went before the PUC, it approved a $306 million hike. That was significantly less than the $440 million the utility was asking for.
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