Xcel Energy is proposing to raise its base rates for electric service in Texas by 7.4 percent, or $5.18 per month for an average household using 800 kilowatt-hours, according to a company news release.
It is the first time since 1986 Xcel’s Texas-based operating company, Southwestern Public Service, is proposing to raise its base rates, according to the release. The company hopes to offset the higher cost of doing business, the company said in a news release.
Other rate classes would see different percentage increases, but the overall increase for all customer classes, including residential, commercial and industrial, is 6 percent.
The overall rate increase proposal will raise revenues by $47.1 million a year, or 6 percent, the company said in the news release.
The proposals were filed Wednesday with the 81 Texas municipalities that Xcel Energy serves and with the Public Utility Commission of Texas. If approved, new base rates — the rates the company charges for depreciation, operations and maintenance expenses of electrical generation, transmission and distribution systems — could take effect in July.