Xcel Energy has proposed a significant rate increase of 19% for its electrical customers in North Dakota. The utility company argues that this increase is necessary to fund vital infrastructure improvements. However, this proposal has sparked questions among customers regarding the rationale behind their financial contributions to the company.
In a recent letter to the editor, retired Minnkota Power employee Don Schempp voiced his concerns about Xcel’s justification for the rate hike. He highlighted that the construction of electrical transmission lines, substations, and generation facilities is indeed capital intensive, but he questioned why customers should bear the burden of these investments.
Schempp pointed out that as a publicly traded company, Xcel’s primary responsibility is to its shareholders. He noted that Xcel has a consistent history of paying dividends to its stockholders on a quarterly basis. This raises a critical question: why are customers being asked to “invest” in the company instead of using profits to enhance infrastructure?
Grand Forks resident Schempp’s perspective reflects a growing sentiment among customers who feel their contributions should not solely support shareholder profits. He emphasized that rather than distributing excess profits in the form of dividends, Xcel could reinvest that capital back into its infrastructure.
The proposed rate increase, if approved, would significantly impact the monthly bills of many North Dakotans. Customers will likely be closely monitoring the outcome of this proposal and its implications for their financial commitments to Xcel.
As discussions continue, it remains essential for utility companies like Xcel to balance their obligations to shareholders with the needs and concerns of their customers. The ongoing dialogue about the rate increase illustrates the complex relationship between utility providers and the communities they serve.
