Summary
Xcel Energy Inc. (XEL) has reported on a significant development in its 2025 Minnesota Natural Gas Rate Case. The company's subsidiary, Northern States Power Company (NSP-Minnesota), has reached a non-unanimous settlement with certain intervenors regarding a natural gas rate increase. The settlement proposes a total revenue increase of $38 million, which is lower than the originally requested $62 million (or $62 million as updated in April 2026). This settlement also includes a weighted average cost of capital of 7.21%, a slight increase from the previously authorized 7.16%. While the settlement is a positive step towards resolving the rate case, investors should note that the MPUC decision is not expected until November 2026. The filing indicates that the evidentiary hearing will take place on May 11-12, 2026, followed by an ALJ Report on September 1, 2026. The company had initially sought interim rates of $51 million, which were approved, and the final outcome of this settlement will impact future revenues and profitability for NSP-Minnesota.
Key Highlights
- 1NSP-Minnesota reached a settlement in its 2025 natural gas rate case with certain intervenors.
- 2The settlement proposes a total revenue increase of $38 million, down from the $62 million initially requested.
- 3The weighted average cost of capital in the settlement is 7.21%, a slight increase from the prior 7.16%.
- 4Interim rates totaling $51 million were previously approved and became effective January 1, 2026.
- 5The procedural schedule includes an evidentiary hearing on May 11-12, 2026, and an ALJ Report on September 1, 2026.
- 6A final MPUC decision on the rate case is anticipated in November 2026.
- 7The original filing was based on a 2026 forecast test year with a requested return on equity of 10.65%.