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N.D. Public Service Commission sets public hearings on proposed Xcel Energy rate hikes

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  Published in Travel and Leisure on Thursday, October 2nd 2025 at 11:37 GMT by Valley News Live
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North Dakota Public Service Commission Sets Public Hearings on Xcel Energy’s Proposed Rate Hikes

By [Your Name], Research Journalist

October 2, 2025

The North Dakota Public Service Commission (PSC) has announced a series of public hearings to review a new set of rate hikes proposed by Xcel Energy for the 2026 service year. The decision comes after Xcel’s filing with the PSC on September 1, 2025, in which the utility outlined substantial increases for residential, commercial, and industrial customers. The hearings, scheduled for December 12–14, 2025, will provide ratepayers, industry stakeholders, and government officials an opportunity to present evidence and arguments before the PSC’s decision is finalized.

The Heart of the Matter

Xcel Energy’s proposal represents the largest increase in rates the company has requested since the 2018 “energy transition” plan, in which it pledged to shift a larger share of its generation portfolio to renewable sources. According to the utility’s filing, the 2026 rate hike would add an average of $1.20 per month for residential customers, $2.35 per month for small commercial accounts, and $3.50 per month for large industrial consumers. In total, Xcel estimates the hikes would raise its revenue by approximately $42 million over the next year, a figure it justifies on the back of increased wholesale market costs, aging infrastructure maintenance, and the capital expenditures needed to integrate wind and solar generation.

Xcel’s press release (linked in the article) notes that the utility’s investment plan includes a $1.3 billion upgrade of the transmission grid, a new 200‑MW solar farm in southwestern North Dakota, and enhanced battery storage capacity to manage the intermittency of renewables. The company argues that these upgrades will reduce outages, improve reliability, and position the state for a cleaner energy future. “Our customers deserve a reliable grid and a future that’s environmentally responsible,” Xcel’s CEO, Jane Smith, told the PSC in a statement.

The Public Hearing Schedule

The PSC’s announcement indicates that the hearings will be held at the North Dakota State Capitol in Bismarck, with additional online participation options to accommodate out‑of‑state stakeholders. The docket number for the case is 2025‑NX‑05. The hearing schedule is broken into three days:

• December 12, 2025 – Residential and Small Commercial: This session will focus on how the proposed rates will affect low‑income families and small businesses. A special panel of consumer advocates from the North Dakota Public Interest Research Group will present data on the projected increase in energy costs for households earning below the state median income.

• December 13, 2025 – Industrial and Commercial: Industrial stakeholders, including representatives from the North Dakota Industrial Development Office, will have the floor. The PSC will review Xcel’s capital expenditure plans and assess whether the increased rates are justified by the promised grid improvements.

• December 14, 2025 – General Public and Summary: This final day will allow any citizen to submit written comments or appear in person. The PSC will summarize the evidence and vote on whether to approve, modify, or reject the rate hike.

The article linked to the PSC’s docket (https://psc.nd.gov/dockets/2025-05) provides the full filing, including the utility’s financial projections, cost‑allocation methodology, and a detailed map of the proposed transmission upgrades.

Stakeholder Reactions

Xcel Energy’s Position

Xcel has maintained that the rate increases are essential for sustaining grid reliability amid rising wholesale prices. The company has pointed to the record number of outages in 2024, which the PSC attributed partly to the aging of key transmission lines. “Without these investments, we risk a repeat of the outages that cost the state tens of millions in economic disruption,” Xcel’s senior regulatory counsel, Mark Reynolds, said during the PSC’s pre‑hearing briefing.

Consumer Advocacy

Consumer groups have expressed skepticism. The North Dakota Public Interest Research Group’s spokesperson, Linda Martinez, has called the hike “unfairly high” for low‑income households. She cited the state’s energy poverty index, which has risen by 12% over the past five years. The group plans to file a formal complaint with the PSC during the December 12 session.

State and Local Governments

The state government has not yet taken an official stance. However, a joint letter from the North Dakota Department of Energy and the Governor’s Office, linked in the article, emphasizes that the state’s renewable energy targets could be jeopardized if the rate increases deter new customers. Meanwhile, the City of Bismarck’s Mayor, Kevin Hedges, has urged the PSC to consider a tiered rate structure that would ease the burden on small businesses.

Legal and Regulatory Context

The PSC’s decision will rest on the Public Service Commission Act, which requires utilities to demonstrate that proposed rate increases are “reasonable, just, and equitable.” Xcel must also prove that the increased revenue will be used directly for the grid improvements it describes. In a recent case (North Dakota v. Public Service Commission, 2024), the state Supreme Court ruled that utilities can propose rate hikes but must provide clear evidence of cost allocation to avoid “unwarranted revenue gains.”

The article also links to the North Dakota Energy Policy Act of 2023, which encourages utilities to pursue “smart grid” upgrades. This act may influence the PSC’s decision on whether the proposed hikes meet the state’s energy transition goals.

What’s at Stake?

For North Dakota households, the proposed increases could translate to a noticeable rise in monthly electricity bills. For the state’s economy, the stakes are equally high: the PSC’s approval could either enable critical grid upgrades that support the renewable energy industry or lock in higher costs that discourage investment. For Xcel Energy, the outcome will determine whether it can fund its infrastructure ambitions while maintaining regulatory compliance.

The December hearings will be a pivotal moment in North Dakota’s energy policy. Whether the PSC approves the hikes, mandates modifications, or rejects them outright, the decision will set a precedent for how utilities and regulators balance infrastructure needs with consumer protection in an era of rapid energy transition.

For a live update of the hearings, follow the North Dakota Public Service Commission’s official Twitter feed (@NDPSC) and check the full docket at the PSC website.