(KNSI) — The state’s largest natural gas utility applied Monday for a rate increase, but with an added rate stabilization to lessen the financial impact on its customers.
CenterPoint Energy filed one application with the Minnesota Public Utilities Commission asking for an adjustment to distribution charges, known as a rate case. According to a press release from CenterPoint, the adjustment would help CenterPoint comply with federal regulations and funnel money toward safety and reliability.
Another application was also filed Monday for a rate stabilization plan. The utility says that would resolve the case rate and also lower the financial impact for customers.
The full case rate would be about 6.5%, or $67.1 million a year. That would add about $4.05 to an average residential customer bill. The rate stabilization would lower the increase to 3.9%, or $39.7 million a year. That adds up to about $2.83 per month for a residential customer.
CenterPoint says the rate stabilization would also extend the recovery period to offset the February 2021 natural gas price spike. The PUC approved that in the form of a surcharge, which started in September, and will continue through November of 2023. The press release says the longer recovery period was requested to ease the impact for customers, lowering the monthly surcharge from $11.66 to $4.60.
The PUC must approve the two applications before the new increases can take effect. If approved, the price hike would take effect on January 1st. If denied, the rate case proceedings could take until early 2023, and the rate would go up 5.1% on January 1st.
Xcel Energy and Minnesota Power also are asking the PUC for a rate increase. Xcel is asking for 21.2% spread over three years, which would add between $15 and $21 a month to an average residential customer bill. Minnesota Power is asking for 17.58%, which would add about $15 per month to a residential customer bill, but $55 a month for a small business customer.
More details about the rate case and the rate stabilization plan can be found by clicking here.
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