MINNEAPOLIS--(BUSINESS WIRE)--
Citing the need to maintain a safe and reliable electricity system
for its customers in the face of escalating costs for 2009, Xcel
Energy today asked the Minnesota Public Utilities Commission (MPUC) to
raise base electric rates.
"We know that these are challenging economic times for our
customers, and we would not ask for a rate change unless it was
necessary to maintain safe and reliable service," said Dave Sparby,
president and CEO of Northern States Power Co.-Minnesota, an Xcel
Energy company.
"Like many businesses, we face increased costs," Sparby said. "The
costs of materials such as transformers, wires, steel and cables have
risen dramatically in the past three years. We are also investing in
our nuclear plants - our lowest cost and most reliable energy source -
to keep them safe and reliable."
Xcel Energy has invested $1.2 billion in its core electricity
system since its last rate case in 2006. The investments were needed
to maintain reliability and meet an increase in demand from new and
existing customers. Xcel Energy serves 1.2 million electricity
customers in Minnesota.
If approved, the request would result in an increase of $156
million, or 6.05 percent. A typical residential customer's monthly
bill would increase by approximately 7.6 percent. A typical small
business customer's bill would increase by approximately 5.2 percent
per month.
Sparby added that conservation remains the single best way for
customers to reduce their energy bills. "Even with the higher costs,
there are simple steps customers can take to conserve energy and
reduce their bills," he said.
Xcel Energy has several free online resources available to
customers to help them conserve electricity and reduce their energy
bills. Some of these resources include the Home Energy Analyzer,
Energy Calculator and ENERGYsmart Library. Customers can take
advantage of these resources by logging onto
www.xcelenergy.com/infosmart.
As part of this filing, Xcel Energy proposes to implement interim
rates effective Jan. 2, 2009. Interim rates are expected to increase
customers' bills by approximately 6 percent during 2009. The interim
rates will likely be put into place in late 2009. Those interested
will have an opportunity to comment during public hearings the
commission may schedule for mid-2009. The filing will be posted on
Xcel Energy's Web site at www.xcelenergy.com.
Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural
gas company with regulated operations in eight Western and Midwestern
states. Xcel Energy provides a comprehensive portfolio of
energy-related products and services to 3.3 million electricity
customers and 1.8 million natural gas customers through its regulated
operating companies. Company headquarters are located in Minneapolis.
More information is available at www.xcelenergy.com.
Source: Xcel Energy
Contact: Xcel Energy
Media Relations, 612-215-5300
www.xcelenergy.com