RegulatoryMay 11, 2026, 04:48 PM
Xcel Energy Subsidiary Settles MN Gas Rate Case for $38M Increase
AI Summary
Xcel Energy's wholly owned subsidiary, Northern States Power Company (NSP-Minnesota), reached a non-unanimous settlement in its 2025 Minnesota natural gas rate case. The settlement proposes a total revenue increase of $38 million, which is less than the initial request of $62 million (8.2%). The agreement also includes a weighted average cost of capital of 7.21%, an increase from the previously authorized 7.16%. A final decision from the Minnesota Public Utilities Commission (MPUC) is anticipated in November 2026.
Key Highlights
- Xcel Energy's NSP-Minnesota subsidiary settled its 2025 Minnesota natural gas rate case for a $38 million revenue increase.
- This settlement is lower than the initial request for a $62 million (8.2%) total revenue increase.
- The agreement includes a weighted average cost of capital of 7.21%, up from the previously authorized 7.16%.
- The original filing was based on a 2026 forecast test year with a 10.65% return on equity and a $1.5 billion rate base.
- Interim rates of $51 million, effective January 1, 2026, were previously approved by the MPUC.
- A detailed settlement agreement will be filed later this month, with a MPUC decision expected in November 2026.