Xcel Energy Rate Case Highlights

In April 2025, Xcel Energy (Northern States Power Co.) filed a general rate case to raise rates in 2026-2027.

In PSC case 4220-UR-127, Xcel seeks:

Focus on profits

• • Xcel asked the PSC to hike its return on equity, or profit rate, from 9.8% to 10%, which would be the highest in Wisconsin and out of line with the national average. Xcel  also seeks another change that would allow it to profit more than it does already — by allowing a greater portion of its spending to capture 10% returns.
  • Xcel’s Minnesota counterpart has a profit rate of 9.25% for its electric utility and 9.57% for its natural gas utility.
  • In the last case two years ago, Xcel sought a hike to 10.25%, but that proposal was rejected, saving customers millions.

PROFits too high

• • Xcel’s Wisconsin utility reported 2024 profit of $134 million, and its profits over the past three years totaled nearly $400 million.
  • Customers across the country are overpaying by billions from profit rates that have remained far too high for far too long.

SPENDING ON POWER PLANT, POWER LINES, AND GRID

• • $182 million in increased spending each year on the utility’s distribution system, including replacement of aging equipment, move to accommodate customer growth, resiliency spending and wildfire risk reduction initiatives.
  • A portion of the cost of the $318 million Wheaton natural gas plant repowering project will be part of this year’s increase.
  • $14.7 million increase due to increase in costs, particularly customer service, administrative, and general expenses.
  • Xcel said its increase is due in part from having avoided implementing a 2025 rate hike that would have increased electricity bills by 4% to 6%.

Other proposals

• • Affordability: Xcel is seeking approval of an arrearage management program for qualifying low income customers.
  • EV charging: Xcel is revamping or retiring a variety of EV related programs.
  • Divvying up the pie: CUB will be advocating for the PSC to protect homeowners, renters and small commercial and industrial customers from bearing the brunt of any approved increases. Separately, in response to a request from CUB, the PSC launched a divvying-the-pie investigation in 2024.

Timeline

• • Ongoing: PSC Audit, Analysis
  • Aug/Sept: CUB experts, PSC staff weigh in
  • Sept./Oct.: Public Hearing and Public Comment Opportunity
  • November: PSC Commission Meeting Discussion
  • December: PSC Final Written Decision

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-127)

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.

A LOOK BACK

In Xcel’s last Wisconsin rate case, decided in 2023:

•  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.
• 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.