Sun Sep 14 20:10:00 UTC 2025: ## Xcel Energy Rate Hike Proposal Faces Public Scrutiny at Upcoming Hearing
**Stillwater, MN** – Xcel Energy customers will have their first chance to voice their concerns about a proposed double-digit rate hike at an in-person hearing Monday night in Stillwater. The energy provider, Minnesota’s largest, is seeking a 13.2% increase spread over the next two years, translating to approximately $165 more per year for a typical customer.
The company cites the need for increased revenue to fund clean energy projects, maintain carbon-free nuclear plants, and accommodate projected electricity use growth as justifications for the proposed increase.
Despite posting nearly $2 billion in profits last year, Xcel Energy declined an on-camera interview with 5 EYEWITNESS NEWS to address concerns about the timing of the rate hike, given rising costs already burdening customers, and potential alternative revenue streams.
The final decision on the rate increase rests with the Public Utilities Commission (PUC). Commissioner Hwikwon Ham emphasized the importance of public input in the process. “Our main job is making sure that the public’s interest is protected,” Ham stated, adding that the commission is “very mindful about this affordability issue” and heavily focused on ensuring reasonable overall rates. Ham also pointed out that the PUC has previously scaled back Xcel Energy’s rate hike requests, citing a recent case where a 21% request was ultimately reduced to 9.6% over three years.
In a statement, Xcel Energy maintained its commitment to meeting growing electricity demand, ensuring reliable service, and transitioning to a cleaner energy future while keeping costs low. They argue the proposal reflects the needs of customers investing in electrification and economic development. While acknowledging rate change concerns, Xcel stated the request is vital to support investments in Minnesota’s energy future and align with the state’s 2040 clean energy goals.
Xcel further noted that the actual bill increases would be substantially lower than the percentage increase due to savings passed on to customers from federal tax credits for carbon-free nuclear generation. The company also highlights that Minnesota residential electric bills are, on average, 32% below the national average and that they offer assistance programs for customers facing payment difficulties.
Customers unable to attend the hearing can submit comments via phone or mail to the Public Utilities Commission. The PUC encourages all concerned citizens to make their voices heard as they deliberate on this important decision.
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