Xcel Energy Inc. Subsidiary Reaches Settlement in Minnesota Gas Rate Case

SEATTLE (Oil Monster): Xcel Energy Inc. announced that its wholly owned subsidiary, Northern States Power Company-Minnesota, has reached a non-unanimous settlement with intervenors in its 2025 Minnesota natural gas rate case.

The utility initially sought a $62 million revenue increase, or 8.2%, in its October 2025 filing, later updated in April 2026 based on a forecast test year. The proposal included a 10.65% return on equity, a 52.5% equity ratio and a $1.5 billion rate base. Interim rates totaling $51 million were approved by the Minnesota Public Utilities Commission and took effect January 1, 2026.

Under the new settlement reached May 8, the agreed revenue increase has been reduced to $38 million. The settlement also establishes a weighted average cost of capital of 7.21%, slightly above the previously authorized 7.16%.

A formal settlement filing is expected later this month. Evidentiary hearings are scheduled this week, with an Administrative Law Judge report due September 1. The Minnesota Public Utilities Commission is expected to issue a final decision in November 2026.

Xcel Energy Inc. reported weaker-than-expected Q1 2026 results, with EPS of $0.91 versus the expected $0.93 and revenue of $4.02 billion, missing forecasts of $4.17 billion.

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