FARGO, N.D. - The North Dakota Public Service Commission today approved a rate plan for Xcel Energy that will result in more predictable electricity prices during the next several years while allowing the company to fund important investments in power plants and the transmission grid. The company's rates in North Dakota are expected to remain about 15 percent below the national average through the term of the rate plan.

The agreement provides for three annual rate increases of 4.9 percent in 2013, 2014 and 2015, followed by a rate freeze in 2016. When the new rates take effect on May 1, 2014 residential customers can expect to see only a small increase - on average about $1 - in their monthly bills from the interim rate level. Also, because interim rates in effect since February 2013 until May 1, 2014 were higher than the final rates, Xcel Energy's 90,000 North Dakota electricity customers will get refunds this summer totaling about $3.6 million, or $19 for the typical residential customer.

"The comprehensive resolution of our rate request will minimize customer bill impacts, provide more rate predictability and avoid having to pass on to customers the costs of additional rate proceedings during the plan term," said Dave Sparby, president and CEO of Northern States Power Co.-Minnesota, an Xcel Energy company. "At the same time, it allows Xcel Energy to finance needed upgrades of its nuclear and other power plants as well as expansion of its transmission grid.

"These investments are needed to continue providing reliable and safe electricity to our North Dakota customers well into the future."

Under the agreement, customers would also receive refunds if the company's weather-normalized earnings exceed commission-authorized levels in any year during the four-year rate plan.

The settlement also:

• Includes a commitment to develop thermal generation resources in North Dakota no later than 2036, consistent with principles of prudent resource planning. A plant located in the state would achieve greater geographic diversity of Xcel Energy's generating fleet and enhance reliability in its North Dakota service territory; and
• Establishes a regulatory framework that assures the company's rates in North Dakota reflect an energy resource mix consistent with North Dakota policies.

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