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Xcel Energy customers will be paying more in gas rates this year, according to the independent nonprofit group Citizens Utility Board of Minnesota.

But it’s less than what the utility requested last September. Gas rates will rise by 4.9 percent. Xcel had requested an increase of 8.2 percent, or $63 million a year. Residential customers would see a lower increase of 4.1 percent.

The Public Utilities Commission must approve the settlement for it to become binding.

The board also said that it, along with Xcel, the Minnesota Department of Commerce, the Suburban Rate Authority and the Laborers’ union, have filed a settlement stipulation to resolve the case.

“Today’s settlement resolves all issues for the signatories,” the board said in a press release.

Attorney General Keith Ellison did not join the settlement and will continue to litigate the case.

If state regulators approve the settlement, customers who have been paying an interim rate increase of 6.8 percent since January will receive refunds with interest, the board said.

“While any increase in utility costs is going to be difficult for many people, this settlement is a fair outcome,” said Annie Levenson-Falk, executive director of the utility board. “If it’s approved, customer contributions to shareholder profits will go down and ratepayers will receive refunds.”

Once Xcel filed the petition requesting the increase last fall, that started a Public Utilities Commission proceeding to determine what rate increase would be justified. Public hearings were held around the state. 

Consumer advocates say higher rates would hurt Minnesota customers already struggling to pay higher electric bills, along with rising prices for groceries, housing and other costs.

State regulators are expected to hear the case this fall. Members of the public who would like to weigh in may file a public comment by June 12 

on the Public Utilities Commission website

Xcel is Minnesota’s largest electric utility, with about 1.3 million electric customers in the state. It said it needs the increase to improve reliability of its electric system, add clean energy projects, invest in its nuclear plants and prepare for the expected surge in demand for electricity.

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Advocates say that higher gas rates will make it tougher for those struggling to already pay for other rising costs like groceries and gasoline. 

Xcel customers to see gas rates increase by nearly 5 percent

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