Xcel eyes natural gas rate hike in ND

The North Dakota Public Service Commission is holding formal hearings on a natural gas rate increase proposed by Xcel Energy.

The increase would come on the monthly base charge, for the delivery of the gas.  Utilities do not make money off of the gas itself.  Xcel had proposed increasing the monthly charge from $18.50 to $25.00.  But in a settlement worked out with PSC staff the charge would be $22.50.

The intervener in the case is AARP – and it did not agree with the settlement on the rate.  North Dakota AARP state director Josh Askvig says the organization doesn’t like the fact that larger gas customers have charges based on the amount of gas they use, after a fixed monthly charge.

Askvig says North Dakota residential customers will be paying the highest monthly charge of all customers served by Xcel.  He says AARP does agree with the amount of “return on equity” proposed in the settlement – which is 9.8 percent.

The settlement includes a provision that if Xcel makes more money than allowed -customers will be given a refund or bill credit.