Xcel Energy Rate Hike for 2024

  • June 22, 2023
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Xcel Energy Rate Case Highlights

Update: In December 2023, the Public Service Commission scaled back the proposed electricity rate hike for Xcel Energy. See CUB Press Release here after the PSC’s discussion of the case: Xcel rate increase pared back, PSC denies higher profits – Citizens Utility Board (cubwi.org)

The PSC approved an electric increase of $1.1 million, or 0.13%, compared with the request of $40.3 million. The PSC also approved a natural gas distribution increase. See the bill inserts reflecting 2024 rates here.

In April 2023, Xcel Energy (Northern States Power Co.) filed a general rate case to raise rates in 2024.

In PSC case 4220-UR-126, Xcel sought:

Electric rate increase:

  • 2024: $40.3 million, or 4.8%
    • Residential: 7.8%
    • Small Business: 8.0%

Natural gas increase:

  • 2024: $9 million, 5.3%
    • Residential: 6.6%
    • Small Business: 2.9%

Focus on profits

  • Xcel asked the PSC to hike its return on equity, or profit rate, to 10.25%, which would be far and away the highest in Wisconsin and out of line with the national average.
  • Xcel’s Minnesota counterpart has a profit rate of 9.25%.
  • The PSC decided that Xcel’s profit rate in Wisconsin should be 9.8%, well below the 10.25% the utility requested.

Profits too high

  • Xcel’s Wisconsin utility reported 2022 profit of $125 million.
  • Customers across the country are overpaying by billions from profit rates that have remained far too high for far too long.


  • $38.6 million increase associated with new capital investments, a majority of which is driven by advanced metering and grid modernization investments.
  • $14.7 million increase due to increase in costs, particularly customer service, administrative, and general expenses.

Other proposals

  • EV Charging: Xcel proposed to install 2 public EV fast-charging hubs along interstate highways in western/northern Wisconsin, at a cost of $1.24 million. ($360k in 2024) This proposal was approved.
  • Affordability: In a separate case, Xcel is seeking approval of a new customer assistance program that would provide discounts to low-income customers based on their income.
  • Divvying up the pie: CUB argued for the PSC to take a fresh look at the analysis it uses to divvy up costs among residential, small business and large customers including big factories. Update: The PSC agreed with CUB and said it would kick off a new investigation in 2024.


  • Ongoing: PSC Audit, Analysis
  • Aug/Sept: CUB experts, PSC staff weigh in
  • Sept. 11: Public Hearing – via Zoom
  • Nov. 10, 2023: PSC Commission Meeting Discussion: See YouTube video here.
  • Dec. 20, 2023: See final decision here.

Find out more

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