ST. PAUL (WJON News) - Thursday, the Minnesota Public Utilities Commission approved a much smaller rate increase than Xcel Energy had asked for.

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The Commission approved a rate increase of about $306 million, or just under 10 percent, spread out over three years.

  • $92 million in 2022
  • $93 million in 2023
  • $121 million for 2024

Xcel Energy had initially requested an increase of $677.72, or a 21-percent increase.

In addition, the Commission made several decisions:

  • Established a return on equity of 9.25% for Xcel,
  • Required Xcel to establish a low-income rate,
  • Reduced the monthly basic charge for residential and small business customers,
  • Denied the recovery of excessive costs for executive compensation,
  • Continued to work to investigate advanced rate designs including time of use rates.

The final rate is lower than the interim rate Xcel has been charging, so customers will see a refund in the next few months.

The multi-year plan means Xcel Energy cannot file another rate case until November of 2024.

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