Xcel Energy on Tuesday dropped its highly contested request for a $122 million rate increase in 2023. In return, state regulators approved accounting changes that they believe would benefit the utility and its ratepayers.
Minnesota's largest electricity provider had asked the state for a 6% increase to the average residential customer's bill. Ratepayer advocates — including two state agencies — strongly opposed it, saying Minnesotans are already reeling from energy price inflation.
Seeing the fierce opposition, Minneapolis-based Xcel last week filed a complicated alternative plan with the PUC that allowed for a $68 million increase — or none. The plan centers on the changes in accounting for certain costs and revenue.
The Minnesota Public Utilities Commission voted unanimously to accept Xcel's plan — extinguishing the rate hike request.
The Minnesota Department of Commerce had argued that Xcel's last-minute plan would "create unnecessary procedural and record uncertainty."
Still, an attorney for the Commerce Department noted at Tuesday's PUC meeting that its opposition was "procedural" — because the proposal strayed from rate case norms — and not "substantive."
While some PUC commissioners also voiced concerns about tinkering with rate case procedures, they agreed that Xcel's plan had low risk and was in the public interest.
"On balance, this is a thoughtful way to move forward without an interim rate increase," PUC Commissioner Matt Schuerger said at the meeting.