Rates & Regulations Overview

At Xcel Energy, we work with public officials across the states we serve to make energy work better for our customers. Our utility subsidiaries operate under carefully regulated conditions, set in part by state public utilities commissions. Federal and state commissions regulate the rates and services of utilities like Xcel Energy. In exchange for the right to provide electricity and natural gas service in designated regions, we agree to the following:

• Duty to serve: We are obligated to provide service to any residence or business within our service territory. We cannot pick and choose our customers.
• Cost-of-service pricing: Regulatory commissions oversee our prices, which are based on the costs of providing service. We cannot arbitrarily raise customer rates.

Together, this is known as the regulatory compact. It allows us to recover our costs of doing business and earn a reasonable rate of return while ensuring customers receive appropriate levels of service at reasonable prices.

As energy demand grows, we're planning ahead to meet our customers' needs with a diverse mix of resources. Affordability and reliability guide every decision we make. State commissions review our long-term resource plans and costs, which we carefully manage to deliver safe, dependable service while keeping bills as low as possible.