Xcel Energy to Slash North Dakota Electricity Rate Hike Threshold, Narrowing It Down Significantly
BISMARCK — Xcel Energy has agreed to reduce the proposed electricity rate increase for customers in North Dakota. The deal, awaiting approval from the North Dakota Public Service Commission, would push overall rates up by 10.37%, with residential customers facing a 12.92% rise.
Northern States Power Co., a unit of Minnesota-based Xcel Energy, initially sought a 19.34% overall increase, with residential rates climbing by more than 24%. A Public Service Commission hearing held on Monday, December 1, reviewed the rate request alongside the negotiated compromise.
North Dakota households have already been paying higher electric bills this year due to an interim rate increase. If the commission approves the current proposal, customer bills are not expected to change dramatically. Victor Schock, the PSC’s director of utilities, indicated the impact should be manageable for most families.
The commission’s three members could vote as early as January.
Xcel had not pursued a rate increase in four years, according to a company spokesperson, who said the increase is partly a response to high inflation. The additional revenue is intended to fund a new Grand Forks service center, a new substation, and various equipment upgrades.
Xcel serves approximately 97,000 customers across North Dakota, including in Fargo, Grand Forks, and Minot.
During the hearing, Public Service Commissioner Sheri Haugen-Hoffart highlighted four recurring themes from 165 public comments and asked Allen Krug, Xcel’s vice president of state regulatory policy, to address them.
Data centers: Krug stated that the rate rise is not tied to data centers in North Dakota or Minnesota. He also noted Xcel’s commitment to ensuring existing customers do not fund new large-load projects such as data centers.
Impact on seniors and those with fixed incomes: Haugen-Hoffart observed that Social Security cost-of-living adjustments tend to weigh more heavily on these households.
Krug acknowledged that no price change is without some hardship but emphasized that the increase is below the rate of inflation since the last rate update.
Effect of Minnesota policies: Minnesota’s shift away from fossil fuels is accelerating the retirement of coal plants there, a move regulators in North Dakota did not anticipate impacting Xcel’s rates. Krug reiterated that policy differences between states do not drive these increases and that Xcel has invested to strengthen power reliability.
Natural gas and future generation: Krug added that Xcel continues to rely on natural gas and mentioned the possibility of a natural gas–fired plant in eastern North Dakota if a pipeline to bring gas from western oilfields is constructed.
Company profitability: Krug asserted that Xcel’s profits align with investor expectations.
The Public Service Commission had allocated the entire week for the hearing, but the process concluded before noon on Monday due to the compromise agreement.
This article originally appeared on NorthDakotaMonitor.com.
This report features material from Forum Communications Company and partner news services, including Reuters and Kaiser Health News, used to broaden coverage for readers. Learn more about the news services relied upon by FCC here: https://www.inforum.com/policies-and-standards#nobyline
