Xcel Energy to Increase Annual Rates For Texas Customers

It seems that every year we are faced with increases in at least one of our utility providers.  This year it will once again be Xcel Energy customers that will face an increase.

On Tuesday, a preliminary agreement was filed for Texas customers to pay an extra $50.8 million a year.  That is an increase of 6.6%.  So what exactly does that mean for each household?

That means that a household using 1,000 kilowatt-hours will see an increase of about $5.99 per month.  The increase is only being applied to the base rate.  The increase will be split into to increases, one in May and another in September.  The May increase will be the largest with a 4.9 % increase and in September, another 1.7 %.

On average, national customers pay 12 cents per kilowatt-hour. After the increases, Texas customers will be paying about 9.7 cents. So, in all reality, with the increase we are still below the national average.

The purpose of the increase is understandable.  More demand.  The more electricity that is needed, the more work that needs to be done.  Xcel needs to put up more power lines, generating facilities, and who knows what else.

The increase isn't what they originally wanted.  Last November, Xcel asked for a 12% increase or $90 million more.

The rates will go into effect on a temporary basis until the Public Utility Commission grants final approval.