Dive Summary:
- Xcel Energy has increased its rates by 10.7 percent in order to generate $285 million to pay for improvements to its infrastructure; $40 million of the money will be spent on property tax liability.
- The increase will mean that an average customer will pay an extra $8 per month; the hike comes at a time when consumers are using less electricity.
- Some of the major repairs will be to two nuclear generating stations that require upgrades to ensure their longevity.
From the article:
“We’re extending the life of our plants by 20 years. They were built in the 1970s so they need a substantial amount of investment to make sure they are safe and provide a long term reliable source of energy,” said Xcel’s Chris Clark, V.P of rates and regulatory affairs.
Clark explains the company’s 10.7 percent rate hike will add roughly $8 per month to the average residential customer’s electric bill. The interim rate hike will generate some $285 million to pay for infrastructure improvements, including an upgrade of Xcel’s 50-year-old transmission and distribution system. Another $40 million will be spent on an increased property tax liability. ...