News Release: Consumer and energy efficiency advocate groups propose energy- and cost-savings plan for Xcel Energy customers

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Recommendation follows successful implementation of inclining block rates in Colorado and in Minnesota’s Iron Range

For immediate release: June 6, 2014

Contact: Will Nissen, 651-294-7143, nissen@fresh-energy.org

St. Paul, MN – The Energy CENTS Coalition, Minnesota’s leading organization promoting affordable utility service for low-income people, and a group of energy efficiency advocacy organizations propose a rate structure in Xcel Energy’s current rate case. This structure will protect low- and fixed-income customers from rate increases and reward customers who conserve energy and invest in energy efficiency.

The electric utility rate structure, known as Inclining Block Rate pricing, achieves the following:

  • produces lower bills for Xcel Energy’s average residential customer, compared to Xcel’s rate increase proposal
  • results in energy savings of two to six percent over the first few years across Xcel Energy’s residential customers

Inclining Block Rate pricing has been used by Minnesota Power throughout the Iron Range since January 1, 2013 and has been implemented by Xcel Energy throughout its Colorado service territory, resulting in significant savings between 2010 and 2012.

Energy efficiency and conservation measures in place since 1992 have helped Minnesota customers avoid the costs of Xcel Energy building 10 new power plants. This plan will reward customers who have helped Xcel Energy avoid these costs.

Representing consumer interests in energy efficiency, clean energy, and the conservation of natural resources, the groups supporting this rate proposal are Fresh Energy, the Minnesota Center for Environmental Advocacy, the Natural Resources Defense Council, the Sierra Club, and the Izaak Walton League of America.

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