CenterPoint Energy customers face interim rate hike, proposed 3.75% increase for 2025

Xcel, CenterPoint proposing rate increases in MN

Xcel Energy and CenterPoint are proposing more rate increases in Minnesota, with Xcel requesting a 9.6% rate increase for 2025. FOX 9's Bill Keller has the story.

MINNEAPOLIS (FOX 9) - CenterPoint Energy customers will see a rate hike of 2.4% starting on Jan. 1, while state regulators consider a proposed rate increase for 2025.

Raising the rate for gas and electric utilities is a long process that requires approval by state regulators. But the Minnesota Public Utilities Commission (PUC) has already approved some interim rate increases while it considers another round of price hikes.

CenterPoint Energy rate increase

By the numbers: CenterPoint Energy, the state’s largest natural gas provider, is seeking a rate increase of 3.7% for 2025, costing customers an additional $2.58 a month on average.

And while the utility commission considers the 2025 rate increase, a 2.4% interim rate increase went into effect on Jan. 1, 2025. The PUC had already approved a 5.3% interim rate in 2023, which took effect on Jan. 1, 2024.

Dig deeper: The PUC’s website lists the company’s reasons for the proposed rate increase as:

Rising costs for operating, maintaining, and distributing gas.
Increased value of the facilities and investments used to serve customers.
Higher returns for investors, and higher costs of borrowing money.
Ongoing efforts to reduce emissions and the environmental impact of the gas system.

According to the PUC’s website, the proposed increase rate would change the cost of the delivery and basic service charges. However, the cost of gas is determined by how much someone uses and the current price of fuel.

What’s next: The PUC needs to make a final decision about CenterPoint’s rate increase by July 1, 2025.

Xcel Energy rate increase

What we know: Meanwhile, those who use electricity to heat their home will see an even bigger price hike. Xcel Energy has requested a 9.6% rate increase in 2025. If approved, the average person could see their electricity bill increase by nearly $10 a month.

An interim rate increase of 5.2% is now in place, and Xcel is seeking an additional 3.6% increase in 2026. The energy company said the price hikes are necessary to keep up their "safe, reliable and clean" electric service.

What’s next: The proposals from both energy companies still need approval from state regulators, but the lower interim rate increase is in effect while they consider those requests.

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