The Resource Adjustment reflects energy initiative expenses and is shown as a line item on your bill. This includes the following six electric and three gas riders, which the Minnesota Public Utilities Commission reviews annually.
Minnesota Rate Rider Descriptions (PDF)
|Electric Riders||Effective Date||$/kWh|
|Transmission Cost Recovery||Feb 1, 2017|
|Conservation Improvement Program Adj.||Oct. 1, 2018||$0.001813|
|Renewable Development Fund Rider||Oct. 1, 2018||$0.001318|
|State Energy Policy||Jan. 1, 2014||$0.000000|
|Renewable Energy Standard Cost Recovery||May 1, 2017||0.497%|
|Mercury Cost Recovery||Jan. 1, 2011||-|
All fuel costs are separated from the Energy Charge. A separate line item, the total Fuel Cost Charge, replaces the Fuel Cost Adjustment line on your bill. The total FCC recovers total fuel costs. The Energy Charge will be lower as a result because it no longer includes any fuel costs.
This table shows the Fuel Cost Charges by class category for the previous and current month:
|$/kWh||October 2018||November 2018|
|C&I Demand Non-TOD2||$0.02686||$0.02553|
|C&I Demand TOD2 On-Peak||$0.03358||$0.03192|
|C&I Demand TOD2 Off-Peak3||$0.02196||$0.02088|
1 The Fuel Cost Charge is prorated by billing cycle using the calendar month factors shown. A monthly prorate schedule is available on request.
2 Time of Day (TOD)
3 Off-Peak hours are 9 p.m. to 9 a.m. weekdays, weekends and federally observed holidays.
Fuel costs, which include purchased power costs, vary by hour throughout the year. And because each customer class has a different hourly load profile, there is a slight difference in average fuel costs for each, which is represented by a different FCC for each customer class.
For Time of Day customers, the class average Fuel Cost Charge is further divided into on-peak and off-peak charges, to more accurately represent time of day differences in fuel costs.
The fuel cost charge is designed to recover the costs of fuel used to generate electricity, the cost of energy purchased on the wholesale electricity market and other fuel-related expenses. These fuel costs are simply passed through to customers. Xcel Energy does not make a profit on them. The fuel cost charge changes monthly as the cost of fuel and purchased energy fluctuates throughout the year.
The monthly Fuel Cost Charge reflects the expected, or forecasted, costs of providing electricity in a given month. By using forecasted costs, the monthly Fuel Cost Charge means your bill closely reflects the actual cost of the energy use for that month. This allows you to make more informed choices regarding your energy use. To ensure complete accuracy, the forecasted costs are trued-up with actual costs in a subsequent month.
The electric charges usage period on your bill typically spans parts of two calendar months according to the billing cycle. The Fuel Cost Charge line item reflects a pro-rated or blended charge to match this usage period. The amount is based on the number of billed days and the corresponding effective fuel cost charges for each calendar month. For example, a metered customer's bill with usage period from June 15 to July 15, this customer is billed 15 days for June fuel cost charge and 15 days for July fuel cost charge.
Each month, the Minnesota Department of Commerce monitors Xcel Energy’s Minnesota fuel clause adjustment. The Minnesota Public Utilities Commission thoroughly reviews it each year.
Trends in fuels and purchased power, and how they affect the FCC
A credit or surcharge that separates revenues from changes in energy sales, removing the disincentive to promote energy conservation. The line item for electric customers is "Decoupling Adj".
|Customer Type||Effective Date||Surcharge $/kWh||Credit $/kWh|
|Electric||Apr. 1, 2018|
|Residential without Space Heating||$0.003064||-|
|Residential with Space Heating||$0.002361||-|
|Small Commercial non-demand||$0.001245||-|
|Gas Riders||Effective Date||Per Therm|
|Gas Utility Infrastructure Ride (GUIC)||Mar. 1, 2018|
|Commercial Demand Billed||$0.011332|
|State Energy Policy||Jul. 1, 2016||$0.001368|
|Conservation Improvement||Oct. 1, 2018||$0.015504|
One component of the Cost of Gas is the Base Cost of Gas. The Base Cost of Gas is an estimate of the Total Cost of Gas that is calculated for and only changed as part of a general rate case.
for Base Cost of Gas
January 11, 2010
|Commercial Firm||Summer: $0.59440
|Demand Billed – Demand||$0.59664|
|Demand Billed – Commodity||$0.53874|
The other component of the Cost of Gas is the PGA. The PGA is a mechanism designed to recover the current cost of gas supply. The PGA factor is equal to the current wholesale delivered cost of the natural gas supply purchased by Xcel Energy less the Base Cost of Gas. The current cost of gas supply includes supply, transportation, peak shaving and other costs, which the Minnesota Public Utilities Commission (MPUC) determines from time to time. Because of the volatility in the cost of gas supply, a monthly adjustment is needed to raise or lower rates to reflect current market prices. At the close of each month the cost of gas supply for the next month is estimated. This estimated cost of gas supply is then divided by the forecasted retail sales for the month. This $/therm result is compared to the $/therm Base Cost of Gas, and the difference is the PGA factor.
| Current Values
|Demand Billed – Demand||($0.047050)||($0.053630)|
|Demand Billed – Commodity||($0.239860)||($0.169050)|
The PGA also includes a true-up factor. Every September, Xcel Energy determines how much gas expense was incurred for the previous July - June compared to the amount Xcel Energy collected from customers. Any over- or under-recovery is divided by the customer class’s forecasted sales to develop the true-up factor. The MPUC approves the true-up factor annually. The true-up ensures that Xcel Energy collects the actual cost of gas supply, no more and no less.
for Base Cost of Gas
September 2018 -
|Demand Billed – Demand||$0.01195|
|Demand Billed – Commodity||($0.02296)|
Natural gas, like other commodities, is based on supply and demand.
Xcel Energy’s fuel cost forecast is based on “normal” weather. When weather deviates substantially from “normal” there is a direct impact on the PGA.
The Affordability Surcharge recovers the costs of energy assistance provided through our low income program. The line item for electric customers is "Affordability Surcharge" and the line item for gas customers is "Gas Affordability."
|Customer Type||Effective Date||Surcharge|
|Electric||Jan. 1, 2018||-|
|Gas||Jun. 1, 2017||$0.00445/therm|
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