Dive Brief:
- North Dakota regulators approved a first-of-its-kind four-year rate hike agreement for Xcel Energy.
- Under the agreement, Xcel will increase its rates by 4.9% a year in 2013, 2014 and 2015. The utility will freeze its rates in 2016.
- Xcel originally asked for a one-year, $16.9 million, or 9.3%, rate hike. Xcel's revenue will increase $28.4 million under the four-year agreement.
Dive Insight:
The four-year agreement, the longest Xcel has ever had, provides certainty for Xcel and for its customers. This is a form of innovative regulation that some utilities have been seeking. As part of the agreement, Xcel will build a power plant in North Dakota by 2036.
