The Public Service Commission has approved the settlement of an electric rate increase request brought by Xcel Energy.
Last fall, Xcel filed for a 10.8 percent increase in its rates. It modified it later to a 9.3 percent increase. But The PSC approved the final figure of 3.4 percent, which was the settlement between PSC staff and the utility.
"No one likes a rate increase," said Commissioner Brian Kroshus. "But at the same time, no one likes it when the lights don't turn on when you flip the switch."
Kroshus said the PSC has to do some things that insure long term reliability.
"This strikes a good balance," Kroshus said.
Kroshus said Xcel had been given an interim rate increase, that was actually larger than the final package.
"Because it was significantly less, there will be refunds to customers," Kroshus said. "That amount will be approximately $26."
The new rate will take effect on customers’ October bills.