News Releases

Xcel Energy electric rates lowest in Upper Midwest

Performance results reported to Commission

FARGO, N.D. - Xcel Energy submitted its 2002 PLUS Plan results to the North Dakota Public Service Commission this week, and its good news for energy consumers in the state.

Xcel Energy’s low prices highlighted the 2002 results.  The company’s average residential rate of 5.95¢ per kWh was the lowest of all investor-owned utilities operating in North Dakota, South Dakota, Minnesota, Wisconsin, Iowa, Montana, and Wyoming.  Utilities located in these states form the “comparison group” used in the PLUS Plan to gauge Xcel Energy’s price performance.  In addition to its competitive position, Xcel Energy’s residential customers enjoyed an 8.8% reduction in average electric prices compared to a year ago.  The company’s average price for all customers, including commercial and industrial, was down 6.0% from the previous year.

In North Dakota, Xcel Energy is regulated under the PLUS Plan, a new system of regulation adopted by the North Dakota Commission that establishes utility performance standards in the areas of: reliability, customer satisfaction, electric prices, and worker safety.  If Xcel Energy can meet or exceed these standards, the plan allows the company to retain higher returns.  If the utility performs poorly, the plan limits earnings and prevents rate increases.

Xcel Energy met or exceeded five of seven PLUS Plan performance standards in 2002.  Outage restoration time, worker safety, and customer satisfaction measurements also met or exceeded plan targets.  The company narrowly failed to meet its outage frequency and overall satisfaction standards. 

The plan called for base electric rates to remain the same in 2003, due to the company’s earnings in North Dakota.  Xcel Energy earned a 13.15% return on equity (ROE) in 2002 with its electric operations in the state.

Xcel Energy also reported to the commission an 8.8% ROE for its natural gas operations in North Dakota.  Presently, a performance-based plan is not used to regulate the company’s natural gas business.

Xcel Energy serves 84,600 electric customers and 42,200 natural gas customers in North Dakota.

Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in 12 Western and Midwestern states. Formed by the merger of Denver-based New Century Energies and Minneapolis-based Northern States Power Co., Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.