In late October, CenterPoint Energy submitted an application to the Minnesota Public Utilities Commission (PUC) for the authority to increase rates for its natural gas customers. CenterPoint Energy has indicated the rate increase is needed to help cover infrastructure-related expenses including maintenance and pipeline relocation due to local public works and road construction projects.
The proposed rate increase would result in $62 million in additional revenue, an increase of 6.8%. CenterPoint reports that the average monthly customer bill is about $55. The proposed rate increase, if approved, would raise the average residential bill by approximately $4.80 per month. The residential rate increase is proposed as a combination of raising the basic service charge from $9.50 to $12.00 and a delivery charge from $0.21036 to $0.24101 per therm. Rate increases are also proposed for other customer types such as commercial and industrial customers.
An interim rate increase of 5.8% will begin for CenterPoint customers on January 1, 2020. The interim rate will stay in place until the PUC makes a final decision, which is anticipated in late 2020 or early 2021. The PUC will be holding public hearings and seeking comments about the rate case as part of the review process.
Please find additional details about CenterPoint Energy’s proposal via their website. Stay tuned to CUB’s website also as we will provide periodic updates.
Please review CUB’s seasonal energy saving tips to look for ways to minimize the impact of the interim rate increase. CUB also offers free energy bill consultations and can give you customized suggestions to reduce your household’s energy use. Visit our events page for upcoming bill clinics or contact our outreach staff for individual consultations.