So, here it is.
Cue up Connie Stevens.
Minnesota's electricity rates will be raised 9% (numbers rounded).
And in 2013, likely to be raised another 10%.
No inflation.
Prior to 2006, there had been no rate increases for thirteen -- repeat, thirteen -- years. But now, this is the fifth rate increase in seven years for Xcel customers.
I could be mistaken but 2006 was about the time we first started hearing about "green energy" mandates. Prior to 2006, I assume most of Minnesota's electricity was produced by inexpensive North Dakota coal. Now, two new nuclear reactors. The story does not mention wind energy, unless I missed it. Actually, I am surprised there are two new nuclear reactors. Don reminds me that Minnesota does have a "25 by 25" campaign (25% renewable rate by 2025) which will further increase utility costs (solar is about 3x the cost of coal; I can never get a good figure on wind). But I digress.
The story:
The increase, Xcel said, is needed to recoup investments in its two nuclear power plants, counter a drop in electric sales and pay for other power plant and transmission upgrades and higher property taxes.
As part of the increase, all residential customers will pay an extra $2 for the basic service charge.
It is the fifth electric rate hike for Minnesota Xcel customers in seven years. The cumulative increases since 2006 have raised a typical customer's monthly bill $11.45, the utility said. The January bump goes on top of that.The good news: the nine percent only amounts to a couple of six packs of beer, or a McDonald's meal for two, each month. For residential customers, this is not a big deal. For industry ... hey, North Dakota just got cheaper ... on a relative basis.''
********************
Meanwhile, in Colorado:
Xcel Energy on Wednesday asked the Colorado Public Utilities Commission for a three-year, 3.6 percent rate hike to cover the cost of upgrading its aging natural-gas pipelines.
And, so it goes.
If approved, the new rates would take effect in August, increasing bills for the average residential customer by 2.1 percent in 2013 and by 5.8 percent and 2.8 percent in the subsequent two years.
