Winter Storm Uri Cost Recovery

In February 2021, extreme and prolonged cold across the country caused a substantial increase in demand for natural gas which, combined with weather-related natural gas supply limitations, resulted in an unprecedented short-term increase in natural gas commodity prices.

The Minnesota Public Utilities Commission opened an investigation into whether Xcel Energy and other Minnesota natural gas utilities acted reasonably before, during and after the February 2021 natural gas price increase. The Commission also considered ways to reduce the impact of the higher natural gas prices on utility customers.

Many of us rely on natural gas to heat our homes, water and food, so we take seriously our obligation to provide customers reliable natural gas service. To do so, we focus not only on maintaining the pipes that bring natural gas to our customers’, but also on having reliable, diverse sources for the natural gas we provide. We purchase natural gas from wholesale suppliers, and the cost of that fuel is passed on to customers without markup.

We are proud of the work of our employees in the field to ensure reliable service for all customers during the periods of extreme and prolonged cold in February 2021. We appreciate the Commission’s investigation into this matter and provided robust testimony that showed the Company’s actions before, during and after the February 2021 natural gas price increase were reasonable.

During the Commission’s investigation, many customers contacted the Commission and Xcel Energy to express confusion and frustration about why natural gas prices increased significantly, and to voice concern about paying their resulting natural gas bills. We understand and share those concerns and have taken steps to help.

In the days immediately following the price increase, we reached out to a third party specializing in economics, financial matters and regulation to help the company better understand the reasons behind the unprecedented increase in natural gas prices and whether we might have recourse to recover any of these costs from entities in the natural gas marketplace. Investigations into this event are ongoing, and if the company obtains money through these investigations or any potential litigation, it will be returned to our customers.

Given the impact of this event on customers’ monthly natural gas bills, we proposed a plan to mitigate that cost to customers by spreading it out over time.

As always, we are committed to helping customers who may be struggling with their bills. Residential customers who are enrolled in the state’s low-income energy assistance program (external link), or were enrolled at any point since winter of 2019, are exempted from the surcharge and will see no increase in their natural gas bills as a result of the February price spike. Customers who are 61-120 days behind on their natural gas bills will also be exempt from the surcharge—twice a year, the company will add or remove customers from this exemption, based on the status of their account at that time. If you’re having trouble keeping up with your bills, contact us (external link) and we can help.

To see the full case record, visit the Commission’s website at mn.gov/puc/edockets, select “Go to eDockets Project Database,” enter the year (21) and the docket number (610), and select “Search.”

How will the surcharge affect Xcel Energy’s natural gas customers? 

As the investigation proceeded, the Minnesota Public Utilities Commission approved Xcel Energy to begin collecting the increased costs for natural gas from the February 2021 event through a surcharge on customer bills. In August 2022, the Commission reduced the amount Xcel Energy can recover from customers for this event by 9%. To reduce the impact on customers’ monthly gas bills: 

• The surcharge will be spread over multiple years, beginning in October 2021. For residential customers, the surcharge will last 63 months (until December 31, 2026). For commercial and industrial customers, the surcharge will last 27 months (until December 31, 2023). 
• Customers are exempt from the surcharge if they: 
  • Are 61-120 days behind on their natural gas bills (twice a year, the company will add or remove customers from this exemption, based on the status of their account at that time), or 
  • Were enrolled in Minnesota’s low-income energy assistance program (external link) at any point since January 2019. 

Average Monthly Customer Impact
February Event 2022 Surcharge

*Residential Rate continues through Dec 2026
*Average monthly Sep 2021 through Aug 2022 

Average Monthly Customer Impact
February Event 2023 Surcharge

*Residential Rate continues through Dec 2026