The Minnesota Public Utilities Commission has launched an investigation into the affordability of electric and natural gas rates in the state. The move comes as more Minnesotans struggle to pay their utility bills, with disconnections and unpaid balances reaching record levels. The commission is seeking public input to better understand how rising costs are affecting residents and what actions could be taken to improve affordability.
The investigation includes three informational sessions, with the first scheduled for 9:30 a.m. Tuesday. Katie Sieben, chair of the commission, emphasized the importance of hearing diverse perspectives on what affordability means and how it should be measured. The commission routinely reviews rates and costs but noted that this investigation is unique in its broad focus on energy affordability.
Annie Levenson-Falk, executive director of the Citizens Utility Board of Minnesota, highlighted the growing challenges faced by households. She noted that the number of people struggling to pay their electric bills has risen significantly since the pandemic and has not improved much since then. Inflation and other economic pressures have further exacerbated the situation, leading to deeper financial holes for many residents.
Several factors are driving higher utility bills, including a particularly hot summer that increased air conditioning use and rate increase requests from utilities like Xcel Energy. The company cited the cost of modernizing infrastructure as a reason for the hike, but consumer advocacy groups have pushed back, arguing against higher profits for utilities. The commission is accepting public comments until Oct. 16 and will issue a report with recommendations for making gas and electric costs more affordable.