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:

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.

INVESTMENT AND INFLATION

• $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.

Timeline

• 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

• See the filings in the case at the PSC here.
• Create an “ERF-EZ Subscription” to see when new information is filed. (4220-UR-126)

Have your say

• Check CUB’s Active Cases page and the PSC’s New Applications Page for current cases involving Xcel Energy’s Wisconsin utility.
• Submit a written comments on PSC cases and find out about public participation here.