BISMARCK, ND (ND Monitor) – Xcel Energy has agreed to reduce proposed electric rates for North Dakota customers.
The agreement, pending approval with the North Dakota Public Service Commission, would increase overall rates by 10.37%, along with a 12.92% increase for residential customers.
Northern States Power Company, part of Minnesota-based Xcel Energy, had originally sought a rate increase of 19.34%, with a residential rate increase of more than 24%.
Details of the rate request and settlement agreement were discussed at a Public Service Commission hearing on Monday.
North Dakota customers are already paying higher electricity rates this year under the interim rate increase. Victor Schock, PSC’s utilities director, said customers’ bills should not change dramatically if the current proposed rate increase is approved.
The three-member commission’s vote could come in January.
Excel had not sought a rate increase in four years, which a representative said was necessary to address high inflation. The rate increase will also help pay for the new Grand Forks Service Center, new substation and equipment upgrades.
Excel has about 97,000 customers in North Dakota, including Fargo, Grand Forks and Minot.
During the hearing, Public Service Commissioner Sherry Haugen-Hoffert said that in reviewing 165 public comments, she noticed four topics that she asked Alan Krug, vice president of state regulatory policy, to address.
data centers: Krug said the rate increase has nothing to do with data centers in North Dakota or Minnesota. Krug said Accel is committed to not paying existing customers for new large electric load projects such as data centers.
Impact on senior citizens and people on fixed income: Haugen-Hoffert said people who rely on Social Security due to cost-of-living increases are feeling the rate increases more than others.
“No cost increase comes without pain,” Krug said, but noted that the increase is less than the rate of inflation since the last rate increase.
Impact of Minnesota’s policies: Minnesota is transitioning utilities away from fossil fuels like coal. Excel is closing coal-fired power plants in Minnesota earlier than North Dakota regulators anticipated.
Krug said the rate increase is not driven by policy differences between the two states. He said Excel has invested in ensuring power reliability.
He also said Excel continues to use natural gas and said there is a possibility of a natural gas-fired plant in eastern North Dakota if a pipeline is built to bring natural gas from the state’s oil fields in the west.
Excel Profit: Krug said the company’s profits are in line with investors’ requests.
The Public Service Commission had scheduled a full week’s hearing, but as a result of the agreement the hearing ended before noon on Monday.
Original story: Xcel cuts electric rate increase in half for North Dakota customers
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