The Free Press, Mankato, MN

Local News

March 18, 2013

Residents quiet at Xcel rate increase hearing

MANKATO — A microphone was in place to record comments and Administrative Law Judge Jeanne Cochran sat ready to take notes, but no one turned out to voice concerns about a proposed Xcel Energy rate hike during a public hearing in Mankato Monday night.

There were a handful of regular citizens mixed in with several Twin Cities executives and public employees who were likely paid to drive down to Mankato for the hearing. A couple spoke with Xcel employees after the hearing but didn’t say anything on the record.

Cochran told the audience it’s her job to decide if the rate increase, which would result in $285 million in additional revenue for the electric utility business, is justified. Prior to giving residents a chance to speak, she asked an attorney from Xcel Energy to explain the company’s reasons for the increase. She also allowed representatives from the Minnesota Department of Commerce and the Minnesota Attorney General’s Office to state their opposition to Xcel’s proposal.

Xcel needs the 10.7 percent rate increase to pay for improvements in its system, including its nuclear plants, and maintain a power grid that serves its 1.2 million electric customers, said Kari Valley, Xcel attorney. About $114 million would be used for operations and repairs at its two nuclear plants in Monticello and Prairie Island. The investments are needed to ensure power is always available.

The increase was questioned by Ian Dobson, assistant attorney general, when he spoke. He said Xcel’s proposal increases rates more for residential customers than its other customers. Xcel estimates that residential customers currently paying about $65 for electric power, excluding taxes and other fees, would pay about $8 more per month.

“Xcel’s $285 million increase is unprecedented at a time when residents are already struggling to pay their bills,” Dobson said.

Angela Byrne, a financial analyst with the Department of Commerce, cited several reasons why the department has asked Cochran to reduce Xcel’s request by more than $191 million, or about 67 percent. She said the department has been investigating “all aspects” of the utility’s proposal.

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