WisBusiness: PSC OKs 8.3 percent electric rate increase for Xcel

By Brian Clark
WisBusiness.com

The state PSC today gave Xcel Energy gave permission to raise its electricity and natural gas rates, but by less than the utility requested.

In its verbal decision, the PSC said Xcel could increase its 2008 residential electric rates by 8.3 percent, or approximately $6 on the average homeowner’s monthly electric bill. The company had asked for a 14 percent electricity rate hike.

In addition, the commission approved a 3.3 percent increase in residential natural gas rates, which was close to what it requested, and also approved a 10.75 percent return on equity for Xcel Energy.

Todd Stuart, executive director of the Wisconsin Industrial Energy Group, said he appreciated the reduction, but said it was still high.

“This comes on top of double-digit rate increases in past years,” he said. “We are concerned that the manufacturing sector in Wisconsin, which has lost 100,000 jobs since 1999, will suffer. And these are some of the best-paying jobs in the state.”

“And today’s rate hike is several times the rate of inflation. It’s a big concern for our members.”

PSC Chairman Dan Ebert said the rate increase “will help Xcel Energy meet the state’s energy efficiency and renewable requirements and will allow the utility to make the improvements necessary to meet growing energy demands and reduce emissions. Xcel Energy continues to have the some of the lowest rates in the state.”

Brian Elwood, a spokesman for Xcel, said the company was pleased with the PSC decision.

“We think they did a good job on this,” he said.