Xcel Energy natural gas customers in North Dakota will see their bills go up by an average of $5.73 per month, beginning in March.
The North Dakota Public Service Commission granted Xcel an interim rate increase, while the PSC considers a full rate increase.
The utility had filed for a 9.4 percent hike, or about $8.5 million. The interim increase would be $7.9 million.
Commissioner Julie Fedorchak said the primary drivers for the rate increase are capital investments in Xcel's gas distribution system.
"They're going out and improving pipe that exists —replacing it," Fedorchak said. "They're also investing in improvements in its natural gas peaking plants, to maker sure they have the capacity to meet the growing demand in the system. And there are general capital investments, such as information technology, fleet upgrades and other facility improvements."
The PSC says the last time Xcel sought a rate increase was in 2021.
Fedorchak said if the Commission decides on a rate lower than the interim rate, customers could see a refund or bill credit.