Xcel Energy releases rate hike plan details

Xcel Energy is asking state regulators to approve a 4.6 percent rate hike in 2014 and another 5.6 percent increase in 2015 for electricity customers in Minnesota.

Xcel, which released details of its request on Monday, said the increases are needed to pay for major investments in its two nuclear plants, additional wind power and overall improvements to the grid.

"The investments we're making are needed to provide safe, reliable and clean energy for our customers," said Laura McCarten, regional vice president for Xcel.

The Minnesota Public Utilities Commission in August approved a nearly 4 percent rate increase. Customers had already been paying for a bigger hike, so they'll see a refund on their utility bills later this year.

If the PUC signs off on an interim rate increase for 2014, customers would see a rate increase of 4.6 percent early next year.

Xcel expects to file another rate case with the PUC for 2016. Filing a two-year rate hike request now will help customers budget their energy costs, said Chris Clark, an Xcel regional vice president who handles rate cases.

"This is an opportunity to provide more predictable price increases for our customers and actually reduce the impact of the increase in the first year," Clark said.

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