Xcel Energy Seeks 13% Rate Increase: Public Hearings Underway
Xcel Energy has requested approval from the Minnesota Public Utilities Commission (MPUC) for significant electric rate increases that would impact customers across our region. Here's what you need to know about the proposed changes and how you can make your voice heard.
The Numbers Behind the Request
Xcel Energy is asking for a two-phase rate increase beginning January 1, 2025:
2025: 9.6% increase ($353.3 million)
2026: Additional 3.6% increase ($137.5 million)
Combined impact: Approximately 13% total increase over two years
For the average residential customer, this would mean an additional $13.79 per month on their electric bill. However, the impact varies significantly by customer type and service level, with some commercial customers facing increases of over $1,000 per month.
What's Driving the Increase?
According to Xcel Energy's public statements, the requested funds would support:
Equipment upgrades and repairs
Transition to renewable energy sources
Improved customer experience
Increased fixed monthly charges (separate from usage-based rates)
Notably, these increases are not related to fuel costs, meaning customers could face additional rate hikes if energy prices rise.
Perhaps most concerning to many residents is that one stated reason for the increase—mentioned in official documents but not emphasized in public presentations—is increasing shareholder returns.
Opposition from State Agencies
The proposal faces significant pushback from key state offices:
Minnesota Department of Commerce: Opposes the full 13% increase, supporting instead a more modest 4.5% increase with no monthly charge increases.
Minnesota Attorney General's Office: Opposes all proposed increases entirely.
Community Response
At a recent public hearing, residents who attended spoke unanimously against the rate increases. Common concerns included:
Financial strain on families already struggling with rising costs
Xcel's substantial profits (the company reported $1.94 billion in net earnings last year)
The principle that ratepayers shouldn't subsidize private shareholder returns
Questions about the utility monopoly structure itself
Your Voice Matters
The MPUC is accepting public comments on this proposal, and officials emphasize that written comments carry the same weight as those made at public hearings.
How to Submit Comments:
Online: Visit mn.gov/puc, select "More Ways to Get Involved," then "Submit Public Comments"
Reference: Include MPUC Docket No. 24-320
Deadline: December 30, 2025, at 4:30 p.m.
Mail: Minnesota Public Utilities Commission, 121 7th Place East, Ste. 350, St. Paul, MN 55101
The Decision Timeline
The MPUC will likely make its final decision in the third quarter of 2026. In the meantime, interim rates may be implemented. If final rates are lower than interim rates, customers will receive refunds with interest. However, if final rates are higher, customers won't be charged the difference.
Why This Matters
This rate increase would significantly impact household budgets across our community. With Xcel Energy holding a virtual monopoly on electric service in our area, residents have limited alternatives. The public comment period represents one of the few opportunities for community members to influence this decision.
Whether you support or oppose the increase, your input can help ensure the commission understands the real-world impact of their decision on local families and businesses.
Take Action
Consider submitting a comment before the December 30 deadline. Your perspective as a ratepayer and community member is valuable to this process. Even if you can't attend a public hearing, your written comments will be part of the official record the commission reviews when making their decision.
For more information about the rate case and how to participate, visit mn.gov/puc or call the Consumer Affairs Office at 651-296-0406.