Xcel energies is at it again. They’re pushing regulators to approve a new policy that could have some serious financial impact on Minnesotans.
Here’s Five Fast Facts on Xcel’s Rate Proposal:
- 🔌 On Demand - In December, Xcel submitted a proposal that would eliminate the flat hourly rate that most customers are used to and replace it with a “time-of-use” rate system that charges more for power during high demand periods.
- ☕ Twin Peaks - The new plan would double the current rates between 3 pm and 8 pm which is SEVEN TIMES higher than the proposed “off peak” rate between 12 am and 6 am. The rest of the day would be charged a “base” rate. Xcel said customers can opt out of this program.
- ♨️ Price Drops - Xcel claims their rates will be 30% cheaper for base and peak rates than Xcel’s summer rates. They told regulators that the average customer will pay 17.8% more for electricity in the summer and 10.6% less without behavioral changes in usage. Xcel customers already use 20% less electricity in the winter since most homes have gas heat.
- 🥶 Pop Up - Critics say that low-income households may not have the ability to change consumption patterns and that reducing peaks during some hours will only create them in others.
- 🪫 Golden State - This isn’t a new concept. California’s power companies use it as the default billing and several other utilities nationwide have similar programs. Xcel’s Colorado subsidiary has started rolling out the rate system, as well.
🔥Bottom line: This program may be a game changer for everyone in the state. However, it’s hard not to be skeptical, given Xcel’s history of dubious rate hikes.
What do you think of this new program?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
