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Expanding our capacity to meet customers’ energy needs
North Dakota electric rate increase request
On Dec. 7, 2007, Xcel Energy submitted an application to the North Dakota Public Service Commission to increase its base electricity rates – the first such filing in 15 years If approved, annual revenues would increase about 14 percent, or $20.5 million, to cover the company’s increased costs to provide service.
How much will this increase impact customer bills?
Under the proposal, the increase for a residential customer using 850 kilowatt-hours would be about $8.14 monthly. By law, Xcel Energy is allowed to implement an interim rate increase from Feb. 5, 2008, until final rates go into effect later this year. If final rates are lower than the interim level, the company will refund the difference to customers.
Why does Xcel Energy need to increase electricity prices?
Xcel Energy last filed for an increase in its base electricity rates in 1992. The company has diligently managed expenditures and achieved cost savings to ensure customers are getting a good value for their energy dollar. However, the company is now making significant investments in power generation and transmission lines to meet customers' present and future electricity needs.
Xcel Energy is in the process of rehabilitating critical but aging power plants to expand their operating lives, increase their output and reduce their impact on the environment. The company also has invested millions in new and existing transmission facilities to ensure reliable service and increase access to new generation sources - particularly renewables - in the region.
Coal plant rehabilitation projects
Xcel Energy’s rate application reflects costs associated with the company’s rehabilitation and repowering of two large coal plants. These projects will extend the lives of these facilities by at least 25 years, provide more than 230 megawatts of additional dependable capacity and dramatically reduce the emissions from these sites.
Improvements at the 504-megawatt Allen S. King plant located near Oak Park Heights, Minn., on the St. Croix River, include steam turbine replacement, steam generator repairs and modifications, coal handling upgrades and the addition of state-of-the-art emissions control equipment. The project will increase the capacity of the plant by 60 megawatts or nearly 12 percent, and drastically reduce emissions of nitrogen oxide, sulfur dioxide, mercury, and other particulates.
The High Bridge plant, located on the Mississippi River near downtown St. Paul, Minn., also is undergoing a major refurbishment. This plant, built in 1924, will now be powered by natural gas rather than coal. Electricity output from the High Bridge site will be increased by 272 megawatts — enough to supply almost 300,000 typical homes. At the same time, air emissions will be significantly reduced: sulfur dioxide, nitrogen oxides and particulate matter will be reduced by more than 99 percent, while mercury will be eliminated.
Nuclear plant life extension
Historically, Xcel Energy’s two nuclear plants are some of the company’s best-performing, most economical sources of electricity. In recent years, new security requirements following the September 11, 2001, terrorist attacks and increases in nuclear fees have had a significant impact on the operating costs at the plants. However, even with these cost increases, these plants are more economical to operate than building new plants.
To allow each of the company’s three nuclear units to operate an additional 20 years reliably and safely, Xcel Energy is refurbishing generator equipment and investing in more temporary spent fuel storage facilities. These instrumentation and equipment improvements will increase the capacity of the reactors by a total of 246 megawatts.
Transmission investments
While customers have increased their use of electronics and electrical appliances, significant upgrades to the region’s transmission system have not occurred since the 1970s. To reinforce system reliability, meet current and future demand, and alleviate congestion on the existing facilities, Xcel Energy has extensive plans to upgrade and add to its transmission facilities. Some of these projects are under construction and will go on-line during 2008, while construction of others will continue in the future.
How much have your rates increased compared with other goods and services?
Since 1993, consumer prices have risen about 2.6 percent per year, while the company’s average electric charges have risen only about 1.3 percent annually during the same period. In fact, electricity remains one of the bargains among crucial U.S. commodities.
What is Xcel Energy doing to help me manage increasing energy costs?
On April 18, 2008 the company filed a plan with the Public Service Commission to promote energy efficiency among its North Dakota electricity customers. If approved, these programs could help you save energy and money. Under the plan, the company would direct nearly $1.1 million to providing conservation rebates, additional marketing resources and energy efficiency information to customers. For residential customers, the proposal includes discounted home energy audits, low-cost fluorescent lighting, controlled air-conditioning rate discounts, and information about how consumers can become more energy efficient. Commercial customers would have access to rebates for lighting, cooling and motor efficiency, controllable load rate discounts and energy consulting services.
What can I do to lessen the impact of higher energy costs?
You can consider several things to help manage your energy bills:
Where can I go if I am having troubling paying for energy bills?
Seek energy assistance through the social services agencies in your area. Also, Xcel Energy helps provides funding for the North Dakota Energy Share program. This program, administered through Community Action Agencies, provides assistance when the other resources such as federally funded programs have been exhausted.
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