Xcel Energy Asks State Regulators to Hold Electric Base Rates Flat for Two Years

(KNSI) — Xcel Energy has asked the Minnesota Public Utilities Commission to keep electric base rates unchanged for the next two years.

According to a press release, the company can avoid a base rate increase by speeding up its use of federal tax credits tied to upcoming battery energy storage projects and by continuing to use cost-recovery mechanisms regulators have already approved. Those are separate charges on customer bills, often called riders, that let Xcel collect certain costs outside of a full rate case. Examples could include charges for transmission lines and energy efficiency programs.

Base rates are only part of a customer’s bill, and the press release does not say whether other charges could change.

If regulators approve, Xcel would hold off on filing its next electric rate case until at least November 2028.

The release says Xcel plans to invest about $4.5 billion in Minnesota’s electric system over the next two years. The largest share, $1.4 billion, would go to electric distribution, including replacing underground cables, wood poles, overhead lines, and substation equipment. Another $1.1 billion is earmarked for clean energy generation and battery storage, and $1 billion for transmission upgrades and expansion. The rest includes $600 million for technology, fleet and property services and $500 million for the safe operation of Minnesota’s nuclear plants.

Customers who are struggling to pay their bills can call 1-800-895-4999 or visit Xcel’s website.

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