State OKs Xcel's interim 4.6% rate increase

State regulators approved another interim bump in Xcel Energy's electric rates on Thursday.

Xcel's request of a 4.6 percent interim rate boost for 2014 was approved by the Public Utilities Commission. The increase, to take effect in January, will bring the company an estimated $127.4 million.

An Xcel spokesperson said the increase amounts to around $4 a month for a typical residence.

The commission won't vote on the final rate until March 2015. In the meantime, the case will go to a trial-like hearing followed by a series of meetings where members of the public can offer input. If the commission approves a permanent rate that is less than the interim, utility customers will be reimbursed the difference plus interest.

Minnesota regulators approved Xcel's last rate increase in August. The utility had originally asked for a 10 percent increase that time around, but the final number was eventually lowered to 3.8 percent.

Xcel officials said in a statement that the increase was necessary to cover rising costs for the company and to create more clean energy. The utility company is also proposing a 5.6 percent interim rate increase for 2015.