The Minnesota Reformer reports today on the scrutiny that Xcel Energy is facing over its natural gas rate increase proposals.
Here’s the background, from the Reformer:
In October, Xcel asked the Minnesota Public Utilities Commission for permission to raise gas rates for the average residential customer by about $85 per year while significantly increasing its authorized return on equity — essentially, the profit state regulators allow utilities to earn for their shareholders.
It’s the type of request that often prompts a contested case proceeding, a drawn-out period of haggling between utilities, the commission and other stakeholders. In the interim, Xcel asked to raise the average residential customer’s rates by about $70 per year, subject to a refund if the contested case proceeding ends with the commission approving a lower final rate.
That’s all fairly typical of the horse-trading inherent in the regulatory compact between state regulators and monopoly utilities. Less typical is the alternative, seemingly more customer-friendly “stay-out petition” Xcel filed at the same time. It offers a take-it-or-leave-it rate hike of about $32 per year for the average residential customer and a promise not to ask for another increase until late next year. If the commission accepts the proposal, Xcel would drop its other rate request.
The Minnesota Department of Commerce and Attorney General Keith Ellison have accused Xcel of “trying to avoid the scrutiny of a contested case proceeding while securing similar financial benefits.”
The Minnesota Public Utilities Commission will be meeting Thursday at 10 A.M. to decide on the rate increases. The live webcast should be available here.
