Xcel Energy is seeking a 4% interim rate hike while it pursues a 21% jump - Axios Twin CitiesLog InLog InAxios Twin Cities is an Axios company.

Xcel Energy is asking for another big rate hike

Illustration: Aïda Amer/Axios Hearings on Xcel Energy's proposed three-year rate hikes will be held in St. Paul today and Minneapolis tomorrow. Catch up fast: Xcel has proposed raising rates by 21% over three years to replace aging infrastructure.Xcel was approved for an interim hike of more than 8% for average residential customers that is showing up on bills this year. It has also proposed a 4% interim hike for 2023 that would go into effect on Jan. 1. If approved, the average residential customer would see an 8.55% increase on their basic service and energy charges.The Minnesota Public Utilities Commission (PUC) , saying Minnesotans were under economic distress due to the pandemic. What they're saying: The PUC should do the same this year, said Annie Levenson-Falk, executive director of the Citizens Utility Board, which advocates for utility consumers in Minnesota. "I would argue that economic circumstances haven't gone away, they've actually intensified," she said. The other side: Xcel said its rates were 23% below the national average in 2021 and 17% below the Minnesota average. The hikes, it said, will help transition the utility to carbon-free electricity by 2050. What's ahead: The PUC is likely to make a decision on the three-year rate hikes in June of 2023. Zoom out: Energy prices have been a big driver of inflation. Nationally, September electricity costs were up 14.8% in the Twin Cities, just below the national average of 15.8%.Those costs include not just rate increases, but also usage, additional charges, credits, and taxes. Details: Today's hearing in St. Paul is at 5:30pm at the Rondo Community Library, 461 Dale Street N.Friday's hearing is at 2:30pm in the Minneapolis Central Library, 300 Nicollet Mall. Editor's note: This story has been updated to clarify that a 4% overall rate hike would equate to the average residential customer seeing an 8.55% increase starting Jan. 1. Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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