On August 2, 2013, CenterPoint Energy filed a request with the Minnesota Public Utilities Commission (MPUC) to change its rates for utility distribution service. The filing, known as a rate case, sought to increase the company’s annual revenues by $44.3 million.
At this time, the new rates are in final approval. CenterPoint Energy anticipates final rates will be implemented later this fall.
Customers’ bills contain three parts: Basic Charge, Delivery Charge and Cost of Gas. The Basic Charges and Delivery Charges recover only the cost of providing utility distribution service to our customers. The rate case request does not apply to the cost of natural gas, which is the wholesale price the company pays for natural gas, and makes up about 60 percent of the bill. The wholesale price of natural gas changes monthly depending on market prices and is passed on directly to customers with no mark-up.
WHY THE NEW RATES ARE NEEDED
We are making significant capital improvements in Minnesota in accordance with natural gas pipeline safety and integrity regulations. The expenses are necessary to:
- Ensure that you receive natural gas service delivered safely and reliably to your homes and businesses
- To respond to significant public improvement requirements on the system
- To modernize the system with technology improvements
Learn more about how the proposed rates affect your billing.